Business & Legal Developments | July 2025
Friends,
In last month’s newsletter, we discussed how nontraditional investors have been shifting their focus toward late-stage startups, and how climate-tech companies have been adapting to a tougher fundraising environment by exploring alternative markets.
This month, we take a closer look at how venture capital (VC) investors are recalibrating their strategies in response to shifting global dynamics, as revealed in PitchBook’s H1 2025 VC Tech Survey.
Rather than reacting with alarm, investors appear to be making calculated adjustments, balancing caution with continued interest in emerging opportunities. Tariffs, while not directly affecting software and services, are expected to have ripple effects across the tech ecosystem, particularly in the hardware and semiconductor sectors. A significant majority of investors anticipate increased supply chain costs and slower growth, signaling a need for startups in these areas to prepare for headwinds.
Despite the uncertainty, dealmaking has not come to a halt. Over half of the surveyed investors are still actively seeking opportunities, though many are applying greater scrutiny, pulling back from international markets, or pausing until there is more clarity. Interestingly, trade tensions may be catalyzing a shift toward domestic investment in strategic sectors, hinting at a broader movement toward tech sovereignty. Artificial intelligence (AI) continues to dominate the conversation, with fintech now seen as the most likely sector to be disrupted by AI advancements, followed closely by health care and enterprise tech. However, adoption hurdles remain, particularly around use case clarity, workforce readiness, and implementation costs.
Looking ahead, the outlook for fundraising and exits has cooled. Fewer investors expect an uptick in VC funding compared to late 2024, and expectations for exit activity have tempered significantly. Ownership stakes are rising, suggesting a more selective but assertive investment approach. While many investors still plan to raise new funds in the next two years, a growing number are extending their timelines or stepping back altogether. The venture landscape is evolving, and those who adapt with agility and foresight will be best positioned to thrive.
As always, do not hesitate to contact us if we can help you brainstorm a legal or business challenge you are facing or connect you to a potential investor, professional, or entrepreneur.
Spotlight on Poker Night
Funds, Firms & Full Houses in the Bay | June 12, 2025
Foley recently had the pleasure of co-hosting the Firms & Full Houses in the Bay event alongside Armanino, fitcapital, and Sequoia Funds. Set against the vibrant backdrop of San Francisco, the evening brought together an exceptional mix of investors, founders, and innovators for a night that blended spirited competition with meaningful connection.
The poker tables added a competitive twist, while the atmosphere fostered authentic conversations and valuable networking. It was a true celebration of the startup ecosystem, dynamic, engaging, and memorable. Foley was proud to be part of such an inspiring gathering of forward-thinking minds.
Events
Upcoming:
AAPI Annual Summer Party | July 10, 2025
Foley is sponsoring the upcoming AAPI Annual Summer Party in San Francisco. This wine tasting in the Bay Area will offer the perfect evening for networking with AAPI founders and investors, featuring connection and community. This event offers the chance to strengthen our bonds, share our wins, and figure out how we can better support each other’s success.
5th Annual Tech Summer League Vegas | July 11, 2025 — July 12, 2025
Join Foley at the Annual Tech Summer League in Las Vegas. This event brings together professional athletes, entertainers, top technology founders, investors, and executives in an exclusive schedule coinciding with the NBA Summer League.
Recent:
SF Women in Health Care Dinner | June 24, 2025
Foley was honored to co-host the Women in Health Care Dinner in San Francisco with CVS Health Ventures and Revelation Partners. The evening brought together inspiring women leaders for an unforgettable night of celebration, meaningful conversations, and exceptional food.
Japanese Whiskey Tasting | June 6, 2025
In Silicon Valley, Foley co-sponsored a Japanese whiskey-tasting event that brought together more than 60 venture capitalists and CEOs. The gathering offered a unique blend of professional networking and engaging conversation, making it a standout opportunity to connect and learn in a relaxed, sophisticated setting.
KSE LA Event: Explosion of K-Content | June 5, 2025
At the Korean Startups & Entrepreneurs (KSE) event in Los Angeles, Foley had the privilege of joining an inspiring evening that celebrated the Korean innovators shaping the future of global entertainment. From K-pop and K-dramas to gaming, fashion, and webtoons, the event highlighted the powerful influence of K-Content on global culture, featuring insights from top producers, executives, artists, and investors.
Biotech Breakfast + Office Hours | June 3, 2025
Foley partnered with Biotech XYZ to host Phase Capital’s flagship biotech networking breakfast and office hours in Foley’s New York City Office. The event featured Q&A sessions and discussions, creating a dynamic space for attendees to explore industry trends, exchange ideas, and build meaningful relationships across law, finance, and biotech.
Biotech Panel Discussion & Happy Hour | June 2, 2025
Foley, in collaboration with Biotech XYZ, hosted an evening event featuring a dynamic panel discussion and happy hour in the Foley New York City office. The event brought together startups, investors, and industry leaders to explore the topic of pricing for early-stage biotech founders, highlighting common pitfalls and misconceptions. Moderated by Jessica Sagers, PhD, Head of Communications at Deerfield Management, the discussion offered valuable insights from industry leaders. It provided a great opportunity to network with key players in the biotech sector and gain a deeper understanding of pricing strategies that can make or break a startup.
Thought Leadership
M&A Disputes Set to Rise in Latin America: How Savvy Investors Are Protecting Themselves
As deal activity shows signs of rebounding in 2025, investors are bracing for an increase in M&A-related disputes globally, and Latin America is no exception. It appears to be leading the trend.
Foley Secures Top Rankings in Chambers USA 2025
Foley is proud to once again be recognized by Chambers & Partners as one of the leading law firms in the country in the 2025 edition of Chambers USA: America’s Leading Lawyers for Business.
Foley Opens Nashville Office with Addition of Three Corporate Partners
Foley announced the opening of its newest office in Nashville, Tenn., with the addition of three corporate partners to support the firm’s growing Health Care & Life Sciences and Manufacturing Sectors. Foley now has 27 offices worldwide and 24 within the United States.
Investor Insights: An Overview of PitchBook’s H1 2025 VC Tech Survey
Louis Lehot shares his thoughts about how investors appear to be recalibrating their approach to technology startups. This article shows how they are not responding with panic, but rather making the adjustments necessary to strategically move forward.
GLP-1 Receptor Agonists: The Surge of M&A Activity and the Future of Metabolic Health
Over the past decade, the global pharmaceutical industry has witnessed a transformation in the treatment landscape for metabolic disorders, particularly type 2 diabetes and obesity. At the heart of this shift is the explosive rise of GLP-1 receptor agonists, once a niche therapeutic class, now a multi-billion-dollar market shaping the future of chronic disease management. With this surge in clinical and commercial success, the GLP-1 technology space has become a hotbed for mergers and acquisitions, as major pharma players race to secure their foothold in what many consider the next blockbuster category.
Deals
Foley Represents PeoplesBank in Hartford Arena Naming Rights Deal
Foley & Lardner LLP represented PeoplesBank in connection with its multi-year naming rights agreement with Oak View Group and the Capital Region Development Authority to rename the 16,000-seat sports and entertainment venue in Hartford, Connecticut, as PeoplesBank Arena.
Foley Represents Mayville Engineering Company in Acquisition of Accu-Fab
Foley & Lardner LLP represented Mayville Engineering Company (MEC), a provider of design, prototyping, and manufacturing solutions, in its definitive agreement to acquire Accu-Fab, LLC (Accu-Fab) from Tide Rock for US$140.5 million. The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions.
Foley Represents Relevant Industrial in Strategic Investment by Fusion Capital Partners
Foley & Lardner LLP represented Relevant Industrial, LLC (Relevant), a leading provider of industrial equipment and engineered solutions, in the acquisition of Relevant by Fusion Capital Partners (Fusion) through a strategic financial investment. LKCM Headwater Investments (LKCM), a longstanding partner to Relevant, sold a majority stake in the company and reinvested as a minority stakeholder.
Foley Represents Johnny Clean Car Wash in Sale to El Car Wash
Foley & Lardner LLP served as legal advisor to Johnny Clean Car Wash in its sale to El Car Wash, a portfolio company of Warburg Pincus.
Foley Secures Dismissal in Securities Class Action
Foley & Lardner LLP represented Vicor Corporation in securing dismissal of a putative securities class action brought by certain Vicor short-sellers in the U.S. District Court for the Northern District of California.
Additional Articles of Interest
Foley’s Nashville Office Opening, Partner Arrivals Highlighted Across Press
Christopher Babcock and Christopher Converse Interviewed on Texas Corporate Law Reforms
Louis Lehot Comments on Crypto Company IPO — ‘Definitely a home run’
Six Foley Attorneys Named to Utah Business’ 2025 Legal Elite
Shaalu Mehra Shares His Tech Law Journey — ‘I knew I wanted to be in technology’
Authors
Louis Lehot
Partner, Venture Capital
Silicon Valley / San Francisco / Los Angeles
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