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FoundAuthor: TechCrunch
On Build Mode, TechCrunch's Startup Battlefield Editor Isabelle Johannessen cuts through the startup mythology to uncover how founders survive the brutal early days, navigate impossible funding landscapes, and somehow keep their companies and sanity intact. Each season, Isabelle is joined by founders, investors, and operators to dig into specific aspects of the startup journey, from creative go to market strategies to founder mental health. The interviews are full of candid startup wisdomthink cap table drama, co-founder breakups, and pivot panic. So, if youre starting a company or or even just thinking about it, this is your survival guide. Language: en Genres: News, Tech News, Technology Contact email: Get it Feed URL: Get it iTunes ID: Get it Trailer: |
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The legal mistakes that can sink your startup before series A with Kristina Subbotina, Lexsy
Episode 5
Friday, 7 August, 2026
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. Kristina shares the four non-negotiable legal decisions every startup should make from day one, what investors actually look for during due diligence, how founders should think about negotiating control versus valuation, and why leverage is the key to getting better fundraising terms. She also shares real stories from the front lines of startup law, from co-founder breakups and investor negotiations to a founder who tried using ChatGPT to draft a merger agreement. They get into: The four legal mistakes that can make a startup unfundable How founder vesting, IP assignment, Delaware incorporation, and 83(b) elections protect your company What VCs actually look for during due diligence and how to avoid common red flags How founders should negotiate valuation, board control, and investor rights Why leverage comes from building a great business—not signing better term sheets The wildest legal horror stories Kristina has seen, including a startup acquisition gone completely off the rails Subscribe to Build Mode on Apple Podcasts, Spotify, or wherever you like to listen. And watch the full videos on YouTube. New episodes of Build Mode drop every Thursday. Chapters:00:00 – Intro: The Legal Mistakes That Kill Startups01:37 – Why Kristina built Lexsy03:58 – The Legal Foundations Every Startup Needs08:22 – How to Find the Right Startup Lawyer10:21 – The Four Non-Negotiable Legal Decisions17:33 – What Investors Look for During Due Diligence20:04 – SAFE Notes vs. Priced Rounds22:18 – Negotiating Valuation Without Losing Control25:25 – Board Seats, Investor Rights, and Hidden Term Sheet Traps30:51 – Should Founders Use AI for Legal Advice?31:04 – How Founders Build Leverage in Fundraising35:48 – The Terms That Can Destroy Founder Wealth37:01 – 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.
