Louis Lehot Shares Insight on Investor Approach to Crypto Startups

Foley & Lardner LLP partner Louis Lehot shared insight on investor sentiment towards emerging crypto companies in The Wall Street Journal article, “Investors Take Sink-or-Swim Approach to Struggling Crypto Startups.”

Lehot said investors are asking for friendlier terms on crypto startup funding deals to hedge against added risk. These can be in the form of side letters with added investor rights and protections, such as co-sale rights, which entitle holders of minority stakes to cash out if a majority shareholder abandons the startup.

Armed with these and other safeguards, Lehot added that many high profile investors with dedicated crypto funds are circling for possible Series A investments in the coming weeks, “presumably to take advantage of investor-favorable valuations in the current environment.”

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