Hidden Conflicts Lurking In Later-Round Cap Charts

Law360, New York (May 19, 2016, 10:22 AM EDT) -- Consider the following: Your fund is offered the opportunity to co-invest at a level of 5 percent in a new C round. The good news is that (1) the portfolio company has real potential, (2) other funds (including the fund calling you with the opportunity) invested in both the A round and B round, (3) the company's valuation has increased for each round (and those increases are supportable), and (4) more than half of the existing A and B investors (including the lead investors in the B round) have exercised their rights to co-invest in the new C round. It all "sounds good."...

Law360 is on it, so you are, too.

A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.

A Law360 subscription includes features such as

  • Daily newsletters
  • Expert analysis
  • Mobile app
  • Advanced search
  • Judge information
  • Real-time alerts
  • 450K+ searchable archived articles

And more!

Experience Law360 today with a free 7-day trial.

Start Free Trial

Already a subscriber? Click here to login

Related Sections

Law Firms

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!