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ARTICLE · 03 SEPTEMBER 2015

How Misunderstanding A Startup's ‘Valuation Cap' Can Get Expensive

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John Demeter, WilmerHale counsel and a Wall Street Journal expert panelist, discusses the importance of understanding valuation caps.

United StatesCorporate/Commercial Law

John Demeter, WilmerHale counsel and a Wall Street Journal expert panelist, discusses the importance of understanding valuation caps in this article published by The Experts blog on WSJ.com, August 28, 2015.

California may be suffering through a drought, but Silicon Valley is being deluged—with venture-capital funding. VC money continues to pour into startups in the country's tech hub and beyond. VCs invested $13.5 billion in the first quarter of 2015, the fifth consecutive quarter that investments topped $10 billion, according to PricewaterhouseCoopers LLP and the National Venture Capital Association's MoneyTree report.

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