Connect with us

Science & Technology

4 legal mistakes that can kill your startup (before you even raise) l Build Mode

Setting up a sound legal foundation could be what saves a startup down the line. A missing founder vesting agreement, an unclear IP agreement, or a messy cap table can derail fundraising, spark co-founder disputes, or even kill an otherwise promising company before it has a chance to scale. In this episode of Build Mode,…

Published

on

Setting up a sound legal foundation could be what saves a startup down the line. A missing founder vesting agreement, an unclear IP agreement, or a messy cap table can derail fundraising, spark co-founder disputes, or even kill an otherwise promising company before it has a chance to scale.

In this episode of Build Mode, host Isabelle Johannesen sits down with Kristina Subbotinai, founder and CEO of Lesxy and former startup attorney at Cooley, to break down the legal fundamentals every founder needs to get right.

Chapters:
00:00 – Intro: The Legal Mistakes That Kill Startups
01:37 – Why Kristina built Lexsy
03:58 – The Legal Foundations Every Startup Needs
08:22 – How to Find the Right Startup Lawyer
10:21 – The Four Non-Negotiable Legal Decisions
17:33 – What Investors Look for During Due Diligence
20:04 – SAFE Notes vs. Priced Rounds
22:18 – Negotiating Valuation Without Losing Control
25:25 – Board Seats, Investor Rights, and Hidden Term Sheet Traps
30:51 – Should Founders Use AI for Legal Advice?
31:04 – How Founders Build Leverage in Fundraising
35:48 – The Terms That Can Destroy Founder Wealth
37:01 – The Craziest Startup Legal Story Kristina Has Ever Seen

Hosted by Isabelle Johannessen. Produced and edited by Maggie Nye. Audience development led by Morgan Little. Special thanks to the Foundry and Cheddar video teams.

Continue Reading
Advertisement
4 Comments

4 Comments

  1. @breaktherules6035

    August 6, 2026 at 4:09 pm

    Excellent insights!!! THANK YOU!!!

  2. @datacoderX

    August 6, 2026 at 10:43 pm

    Unfiaxble legal errors. Ok.

  3. @sdmarlow3926

    August 6, 2026 at 11:25 pm

    A c-corp isn’t a legal company until someone buys shares, so a founder is going to do that the first week. A 5 year vesting schedule seems standard (cliff + 4). They also need to file the 83(b) election with the IRS while those shares are less than a thousand dollars (ex; $500 for 5 million shares). Copy of the filing needs to be part of corp record. IP assignment is also a basic workplace policy (though it’s interesting to look at ZeniMax vs Oculus, as Carmack was public about his efforts to build the VR tech/software while at id software, even on-site). Doubly so for a technical founder. For a lot of VC’s, you just need to be big enough to be purchased by a bigger fish at a high than normal valuation, so I don’t agree with the Delaware incorporation idea. Worse, founders have a way of being the first one shown the door once there are signs of market fit, or demand by VC’s/directors that the company pivot in a direction the founder doesn’t want. A Delaware court system will favor the board members. Not legal advice, but dilution and director seats are a priority long before you get to series c or d funding rounds that might require switching to Delaware, or maybe a decade or more before you IPO. Not a startup killing issue.

  4. @KristinaSubbotinaEsq

    August 7, 2026 at 2:02 pm

    Thank you for having me!

Leave a Reply

Your email address will not be published. Required fields are marked *

CNET

Fold-A-Phone FAQ: Why Aren’t We Randomizing The Folds?

Although we would love to account for every possible use case, doing so along these lines would have drastically increased the development time and complexity of the project for very little measurable gain. Perhaps we can explore more varied interaction methods if/when the Fold-a-Phone 2 test is on our development docket. Host: CNET Labs Director,…

Published

on

Although we would love to account for every possible use case, doing so along these lines would have drastically increased the development time and complexity of the project for very little measurable gain. Perhaps we can explore more varied interaction methods if/when the Fold-a-Phone 2 test is on our development docket.

Host: CNET Labs Director, Matthew Murray

Read more about it our Fold-A-Phone machine and iPhone Duo testing at CNET.com:

Add CNET as a trusted news source
Never miss a deal again! See CNET’s browser extension 👉
Check out CNET’s Amazon Storefront:
Subscribe to CNET on YouTube:
Follow us on TikTok:
Follow us on Instagram:
Follow us on Bluesky:
Like us on Facebook:
CNET’s AI Atlas:
Follow us on X:
Visit CNET.com:

Continue Reading

CNET

Getting touchy with the PROLED MacBook Pro

“Pro and tell” turned into “glow and touch” 💻 Apple debuted the new $2,899 MacBook Pro with an OLED screen and touch display on Wednesday and CNET’s Bridget Carey was on the scene to give it a poke. #proandtell #allaccess #macbookpro #apple #oled You can find the products mentioned in this video linked below *CNET…

Published

on

“Pro and tell” turned into “glow and touch” 💻

Apple debuted the new $2,899 MacBook Pro with an OLED screen and touch display on Wednesday and CNET’s Bridget Carey was on the scene to give it a poke. #proandtell #allaccess #macbookpro #apple #oled

You can find the products mentioned in this video linked below
*CNET may get a commission on these offers

Read more about it on CNET.com:

Video Credits:
Host: Bridget Carey
Video Editor: Tara Brown

Add CNET as a trusted news source
Never miss a deal again! See CNET’s browser extension 👉
Check out CNET’s Amazon Storefront:
Subscribe to CNET on YouTube:
Follow us on TikTok:
Follow us on Instagram:
Follow us on Bluesky:
Like us on Facebook:
CNET’s AI Atlas:
Follow us on X:
Visit CNET.com:

Continue Reading

CNET

iPhone Duo Livestream: How Many Folds Can Apple’s Phone Take? Day 3 – Part 2

We had a litlte power crash so had to restart our video encoder. Apple’s iPhone Duo is out and we want to see how durable it is. So we built a robot to fold it 20,000+ times a day to test its limits. How long do you think it will last? 100,000 folds? 200,000 folds?…

Published

on

We had a litlte power crash so had to restart our video encoder.

Apple’s iPhone Duo is out and we want to see how durable it is. So we built a robot to fold it 20,000+ times a day to test its limits. How long do you think it will last? 100,000 folds? 200,000 folds? 500,000 folds? Tune in and watch the testing live. We’ll have CNET’s editors online to answer any of your questions.

Read more about the iPhone Duo Folding Test on CNET.com
The iPhone Duo Is Now in Our Custom-Made Foldable Phone Test Machine. Will It Beat the Galaxy Fold 8?

iPhone Duo Review: Late to the Foldable Party, but It Steals the Show

Video Credits:
Host: Matthew Murray
Producer: Stephen Beacham
Thumbnail Designer: Zooey Liao

Add CNET as a trusted news source
Never miss a deal again! See CNET’s browser extension 👉
Check out CNET’s Amazon Storefront:
Subscribe to CNET on YouTube:
Follow us on TikTok:
Follow us on Instagram:
Follow us on Bluesky:
Like us on Facebook:
CNET’s AI Atlas:
Follow us on X:
Visit CNET.com:

#apple #iphone #iphonefold #iphoneduo #applefoldable #foldablephone #foldable #folding

Continue Reading

Trending