Business & Legal Developments in Silicon Valley | March 2023

Friends,

Are the “Wild West” days of Silicon Valley over? We are discussing that topic on?March 8th at our event with Firstboard.io?featuring insights from our friends at PwC, The Tech Interactive, QFE, and Okta.

This month we share perspectives on regulatory and compliance updates — plus advice on mitigating risks in emerging tech and the new deal landscape.

AI and crypto continue to dominate headlines, prompting tech producers and those leveraging these technologies to look deeper. If you’re looking into?AI investments, explore this blog by Natasha Allen?on what buyers and sellers should keep in mind. If crypto is of interest, learn what potential legislation or contentious issues may arise by joining our?upcoming webinar with Patrick Daugherty?on March 15th.

Another hot topic we are closely following is the potential outbound investment regulation. The?Wall Street Journal?published an article highlighting how venture capital firm, Sequoia, is screening its China arm’s investments.

Finally, we are pleased to announce that Foley Partner Eileen Ridley, a longtime champion of the firm, will be honored at?Legal Momentum’s 18th Annual Women of Achievement Awards! Eileen is a pillar of the California Bay Area community and is Foley’s Chief Diversity & Inclusion Partner, a role in which she is a catalyst for our commitment to diversity. Please join us in celebrating her accomplishments among other local women of distinction in business, law, and public service.

If you aren’t familiar with?Legal Momentum, check them out at?www.legalmomentum.org. The organization is celebrating its 50th anniversary this year. It’s the nation’s first and oldest legal defense and education fund whose mission is to help women break barriers and rise.

As always, we’d love to see you at one of the events below to catch up. Do not hesitate to reach out if we can help you brainstorm a legal or business challenge you are facing or get connected to a potential entrepreneur, investor or professional.

Your Foley & Lardner Silicon Valley team (Natasha Allen,?Eric Chow,?Brandee Diamond,?Louis Lehot,?Lyman Thai,?André Thiollier,?Alicia D’Alba Dorner, and?Alidad Vakili).

Events

Webinar: Is Crypto Legislation Coming? | March 15, 2023

Join Foley’s Patrick Daugherty for an expert panel on the near-term outlook for crypto legislation. Featuring a keynote from Congressman French Hill (R-AR), Chair of The House Subcommittee on Digital Assets, Financial Technology and Inclusion. 3:00 p.m. ET

Panel: Avoiding the Wild Wild West Perception of Silicon Valley in the Boardroom | March 8, 2023

Natasha Allen (Partner) is headlining a panel with our friends at PwC, The Tech Interactive, QFE, and Okta: “Avoiding the Wild Wild West Perception of Silicon Valley in the Boardroom.” Moderated by Alidad Vakili (Of Counsel) and Firstboard.io. 5:00–7:00 p.m. PT

Webinar: NFT x Sports: What’s The Game Plan? | March 6, 2023

Join Andy Lee (Of Counsel) and Jose Lazaro (Associate) for a session on what the future holds for Non-Fungible Tokens (NFTs) in the sports industry. 3:00 p.m. — 4:00 p.m. ET

Event: SXSW Cocktail Hour | March 13, 2023

Foley’s Innovative Technology Sector along with the Austin office, will be hosting a reception during the South By Southwest (SXSW) Conference. Request invite from Sara Essama:?[email protected]. 6:00 p.m. — 8:00 p.m. CT

Highlights

Retraining the Acquisition Model: How to Approach the Risks and Rewards of Deals With Artificial Intelligence Targets

AI is shaking up the M&A landscape, but is not without potential risks. Here’s Foley’s take on how buyers can mitigate legal, ethical and other business issues in the fast-developing field.

Selling Your Company With Cash in the Bank? U.S. Federal Income Tax Considerations for Structuring Pre-Closing Payments To Target Shareholders

Raj Tanden (Partner) and Marina Choundas (Of Counsel) break down how to optimize your next transaction to achieve the most favorable federal income tax treatment.

Action in venture capital is focused on early stage and AI business

Louis Lehot (Partner) and Lyman Thai (Partner) explain where startup valuations are headed and what sectors present the most opportunity for the savvy investor.

Patrick Daugherty Discusses Challenge to SEC’s Move to Build List of Tokens Considered Unregistered Securities

Patrick Daugherty (Partner) was quoted in the CoinDesk article, “Will the SEC Convince a Court It’s Right to Label These Tokens as Securities?”

Private Investment Diligence and Fraud Prevention: Will New Regulations Change the Game?

Incoming SEC regulations are poised to impact financing early-stage companies. Learn what startup founders and their investors should keep in mind

You Can’t Always Get What You Want: Funding Supply Not Meeting Startup Demands

It’s officially an investor’s market. Here’s what founders and business leaders can do to navigate increased high-performance hurdles and satisfy new levels of investor due diligence.

Deals

• Foley Represents TCGX in Second Investment in Abivax
• Foley Represents Tenacity Venture Capital in Pre-Seed Round for Nevly Money
• Foley Represents NEA as Lead Investor in Flox $16.5M Series A Round

Additional Articles of Interest

• What’s the Standard? Strategies for Protecting Standard Essential Patents
• Another Look at M&A in Brazil
• Kraken Settles SEC Charge That Its SAAS Model Was an Illegal Securities Offering
• HIPAA Breaches and Compliance: Key Findings & Lessons Learned from OCR’s Reports to Congress
• Top Three Mistakes Entrepreneurs Make, and How Not to Make Them
• AI and Carbon Credits: How the Emergence of AI Tools and Technologies Facilitates the Use of Carbon Credits
• Kenny Broodo Discusses the Growth of AI as an HR Tool
• Black History Month and Venture Capital
• Increasing Economies of Scale Through Combining AI With SaaS
• DOJ Withdraws Policy Statements That Defined Limited Safe Harbor for Information Sharing Among Competitors

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