Business & Legal Developments | June 2025
Friends,
In last month’s newsletter, we discussed how escalating tariffs were impacting liquidity options for growth-stage startups and examined the sustained dominance of artificial intelligence within global venture investing.
This month, we look at how nontraditional investors are shifting their focus toward late-stage companies, and how climate-tech startups are adjusting to a tougher fundraising environment by exploring new paths, including defense-related markets.
According to PitchBook’s Q1 2025 US VC Valuations and Returns Report, corporate VCs and crossover funds are pulling back from early-stage deals and putting more capital into late-stage startups, especially those valued at US$1 billion or more. While these investors are doing fewer deals overall, they are making larger investments and contributing a growing share of total venture dollars this year. This reflects a more cautious approach, as many look for more mature companies that are staying private for longer.
At the same time, climate tech is facing a steep drop in funding, with activity in the space hitting its lowest levels since 2019. As dedicated climate funds disappear and investor interest shifts elsewhere, some startups are adjusting their messaging, or even their business models, to better align with the defense sector, where spending has increased significantly. While the move could help unlock new sources of capital, it also comes with challenges, including navigating a different customer base and reworking how these companies present themselves to investors.
As always, do not hesitate to contact us if we can help you think through the impact of the trade wars on your business, brainstorm a legal or business challenge you are facing, or connect you to a potential investor, professional, or entrepreneur.
My best,
Louis Lehot
Spotlight on Firm Expansion
Foley Continues Expansion in California with Two Transactions Partners in Silicon Valley | May 22, 2025
Foley has expanded its Innovative Technology Sector and Transactions Practice Group with the addition of partners Gurpreet Bal and Shaalu Mehra to the firm’s Silicon Valley office. Both attorneys bring substantial experience advising technology companies, investors, and founders on complex transactional and corporate matters.
Gurpreet Bal
Partner
Silicon Valley / San Francisco
gurpreet.bal@foley.com
Over the last two decades, Gurpreet has represented public and private technology companies, investment funds, and founders in capital-raising, M&A, and strategic transactions across industries including AI, semiconductors, fintech, health care, and consumer technology. Gurpreet's work spans the full company lifecycle, from formation and financing to liquidity and exit. Gurpreet has advised on more than 50 M&A transactions totaling over $60 billion in deal value and has represented companies in hundreds of financing rounds, ranging from early-stage venture capital and debt financings to IPOs. His practice draws on these experiences, along with his business background, to provide practical and actionable advice to his company, board, investor, and founder clients. Learn more about Gurpreet here.
Shaalu Mehra
Partner
Silicon Valley
shaalu.mehra@foley.com
Shaalu is a technology dealmaker whose practice integrates his experience in venture finance, corporate governance, intellectual property, and technology policy. Shaalu has handled significant transactions across sectors such as data assets, security, autonomous systems, mobility, cleantech, digital health, and IoT. Shaalu represents a wide range of clients, including Fortune 50 multinationals, venture-backed startups, founders, investment funds, and family offices. Shaalu's practice draws on his technical background in computer science research and development, as well as ongoing academic collaborations. Learn more about Shaalu here.
Events
Upcoming:
KSE LA Event: Explosion of K-Content | June 5, 2025
Join Foley alongside the Korean Startups & Entrepreneurs in the Foley Los Angeles office for an evening spotlighting the Korean leaders driving the future of global entertainment. From K-pop and K-dramas to gaming, fashion, and webtoons, discover how K-Content is shaping global culture with insights from top producers, executives, artists, and investors.
VC CEO Poker Tournament | June 12, 2025
Get ready to go all in for an unforgettable night of cards, premium cocktails, and high-growth conversations in the heart of San Francisco. Foley, alongside Armanino, fitcapital, and Sequoia, will be bringing together investors, founders, and friends of the startup ecosystem for a one-of-a-kind experience. Whether you are a seasoned poker player or not, this event blends friendly competition with curated conversations and top-tier connections. Enjoy great food, refreshments, and a chance to unwind with the people shaping the future.
Silicon Valley General Counsels and Chief Legal Officers Luncheon | June 13, 2025
Join us for the third installment of our exclusive luncheon series for General Counsels and Chief Legal Officers. This session will feature a dynamic, off-the-record conversation exploring the future of antitrust enforcement, the potential dismantling of tech giants like Google and Meta, and the broader regulatory shifts shaping corporate legal strategy.
Our featured speakers include Foley’s David Simon, a national authority on antitrust and government enforcement, and Diane Hazel, a former Federal Trade Commission attorney and state enforcer, along with additional marquee guests to be announced. Together, they will examine how evolving antitrust priorities affect General Counsels, from direct legal challenges and industry-wide implications to shifting enforcement trends in Washington. This intimate gathering offers a unique opportunity for candid discussion, fresh insight, and meaningful connection among peers.
Recent:
Biotech Breakfast + Office Hours | June 3, 2025
Foley, in collaboration with Biotech XYZ, hosted Phase Capital’s flagship networking biotech breakfast and office hours with Q&A sessions in the Foley New York City office. The event provided a platform for attendees to connect with experts in law, finance, and more. It was an excellent opportunity to discuss industry trends, share knowledge, and build valuable connections.
Biotech Panel Discussion & Happy Hour | June 2, 2025
Foley, in collaboration with Biotech XYZ, hosted an engaging 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 experts. 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.
Female Founders & Funders Breakfast | May 6, 2025
Hosted by Foley, Foundess, and Girls Into VC, female and nonbinary founders recently gathered for an exclusive panel discussion focused on navigating the complex world of fundraising and funding strategies in the Foley Boston office. The event featured insights and advice from seasoned investors, successful founders, and legal counsel, providing invaluable guidance for attendees’ entrepreneurial journeys.
Silicon Valley General Counsel Roundtable Luncheon on Tariffs, Supply Chain, and National Security Policy | May 2, 2025
Foley recently hosted a luncheon for General Counsels of late-stage and public companies, featuring a panel discussion on U.S. tariffs and international trade enforcement. Moderated by Louis Lehot, the panel included Christopher Swift, Penny Herscher, and Kirti Jadeja, who shared insights on tariff risk, supply chain integrity, and contract exposure.
Foley RSA Dinner with Stripe | May 1, 2025
Together with our friends and clients at Stripe, Foley hosted a dinner for cybersecurity founders, navigating product-led growth, go-to-market, and early-stage fundraising in San Francisco. Foley also brought a curated group of cybersecurity investors for an intimate evening of conversation, community, and connection. Guests shared takeaways from the recently completed RSA Conference and candid insights, tactical advice, and hard-won lessons from seasoned investors and high-growth founders.
Thought Leadership
Lost in Translation: Key Deal Points in European vs. U.S. M&A Transactions
After two decades practicing law in Silicon Valley and five formative years working on cross-border deals in Europe, the subtle (and not-so-subtle) differences in how merger and acquisition (M&A) transactions are structured on either side of the Atlantic have been more appreciated. For buyers and sellers on opposite sides of the divide, these can be the difference between a smooth closing and a deal that gets lost in translation.
Ten Minute Interview: Structuring Venture Investments for Family Offices
Brian Lucareli, director of Foley Private Client Services (PCS) and co-chair of the Family Offices group, sits down with Mark Mallery, senior counsel and member of Foley’s Transactions group, for a 10-minute interview to discuss how to structure venture investments for family offices. During this session, Mark explained what are some of the factors that determine which investment structures to use, how investors decide between convertible securities and equity financing, and the rights associated with an equity financing.
Foley Attorneys Assess Shifting Landscape of Corporate Incorporation
Since 2023, at least 20 companies, each valued at over US$100 million have announced plans to leave Delaware. Big names like Tripadvisor, DropBox, Pershing Square Capital Management, Viewbix Inc., and Neuralink have reincorporated in Nevada. Trump Media successfully reincorporated in Florida, and Texas has gained SpaceX and Tesla. For decades, Delaware has been the gold standard for U.S. corporate incorporation. Delaware’s established case law, business-friendly court system, and predictable legal framework drew thousands of companies—from fledgling startups to Fortune 500 giants—to incorporate and domicile within its jurisdiction, despite headquarters and operations being elsewhere.
Five Key Contracting Considerations for Digital Health Companies Working with AI Vendors
Artificial Intelligence (AI) is rapidly transforming digital health — from patient engagement to clinical decision-making, the changes are revolutionary. Contracting with AI vendors presents new legal, operational, and compliance risks. Digital health CEOs and legal teams must adapt traditional contracting playbooks to address the realities of AI systems handling sensitive and highly regulated health care data. To assure optimal results, this article details five critical areas for digital health companies to address in the contract negotiation process with potential AI vendors.
Deals
Foley Represents Envisioning Partners as Investor in Series B Round for Phoenix Tailings
Foley & Lardner LLP represented Envisioning Partners as investor in the US$33 million Series B extension funding for Phoenix Tailings, a Burlington, Massachusetts, developer of rare earths from mining waste, for a total funding of US$76 million. In addition to Envisioning Partners, who led the initial closing, the second round was anchored by Escape Velocity with support from Builders Vision, Yamaha Motor Ventures, MPower, Sumitomo Corporation, and other key investors.
Foley Represents NEA as Lead Investor in $200M Series C Round for Abcuro
Foley & Lardner LLP represented New Enterprise Associates (NEA) as the lead investor in the US$200 million Series C financing for Abcuro, a clinical-stage biotechnology company. NEA was joined by additional investors Foresite Capital, RA Capital Management, Bain Capital Life Sciences, Redmile Group, Samsara BioCapital, Sanofi Ventures, Pontifax, Mass General Brigham Ventures, New Leaf Ventures, funds managed by abrdn Inc., and funds and accounts managed by BlackRock, Eurofarma Ventures, and Soleus Capital.
Foley Represents FARO Technologies in $920M Acquisition by AMETEK
Foley & Lardner LLP represented FARO Technologies, Inc. (NASDAQ: FARO), a leading provider of 3D measurement and imaging solutions, in its definitive agreement to be acquired by AMETEK, Inc. (NYSE: AME).
Foley Represents Comstock Inc. in $20M Investment and Separation of Fuels Business
Foley & Lardner LLP represented Comstock Inc. (NYSE: LODE), a leading innovator in renewable energy and resource recovery technologies, in the successful separation of its renewable fuels segment into a new independent entity, Bioleum Corporation, and its high-value capitalization, through the closing on the first US$20 million in direct Series A equity investment.
Foley Represents Thoughtful.ai in Strategic Investment by New Mountain Capital
Foley & Lardner LLP represented Thoughtful Automation Inc. (Thoughtful.ai), a provider of artificial intelligence powered revenue cycle automation solutions, in connection with a strategic growth investment from New Mountain Capital, LLC, a growth-oriented investment firm with more than $55 billion in assets under management.
Additional Articles of Interest
Foley Attorneys Highlighted on Wisconsin Law Journal's M&A Powerlist
Louis Lehot Publishes Article Exploring M&A Geopolitics
Louis Lehot Quoted on Moelis Arguments
Foley Expands Technology and Energy Capabilities with Addition of Two Digital Infrastructure Partners
Louis Lehot Highlights Trade Agreement Impact on Private Equity Market
Foley Earns Honorable Mention in Merger & Acquisitions' Middle-Market Deals of the Year
ATA Nexus 2025 Recap: The Business of Telehealth – Key Legal Considerations
Louis Lehot Highlights Trade Agreement Impact on Private Equity Market
Foley Automotive Update: Key Legal Insights from Foley's Automotive Team
Cybersecurity in Digital Health: Why HIPAA Compliance Alone Is Not Enough for M&A Success
Foley's Silicon Valley Corporate Additions Featured in Legal Press
Authors
Louis Lehot
Partner, Venture Capital
Silicon Valley / San Francisco / Los Angeles
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