The venture capital (VC) industry has skyrocketed in the last decade, both in terms of deal activity and startup valuations, but recent market movements suggest the industry may face a challenging period ahead.

In a recent Law360 article, Senior Associates Dr. Nguyet Nguyen and Julia Zhu examine how public market valuation indicators and subsequent markdowns in the value of private VC investments mean the industry will likely face strong headwinds in the coming months. The authors discuss how financing uncertainties and downward pressure on VC valuation – coupled with the fact that the US Securities and Exchange Commission (SEC) is seeking to increase regulatory oversight – could lead to increased disputes and litigation among startup investors, founders, management, and employees.

The full article, “Challenging Times Ahead for  Venture Capital Industry,” is available below.

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