Public-Company Strategic Investors
Strategic investments in earlier-stage businesses can provide public companies with a host of potential benefits: early access to key technologies, enhanced acquisition opportunities, significant financial returns and increased visibility in a competitive marketplace. However, these financial and business arrangements can also give rise to challenging legal and operational issues that, if unaddressed, may not only cause accountability misalignments among areas of operational and administrative responsibility but also limit or overshadow potential benefits.
Our attorneys draw on their experience working with public companies and private equity and venture capital investors to provide sophisticated counsel to mesh and align priorities that may appear to conflict. We have supported public companies in assessing and implementing minority-stake, venture capital-type equity, convertible equity and convertible debt investments in startups and growth-stage companies, both independently and together with venture capital fund investors. We have also supported public companies in negotiating and closing strategic investments in venture capital funds.
As target and portfolio companies, and their product and service offerings mature, we provide guidance on rollups, joint ventures, licensing and sales of the intellectual property assets that are the result of these collaborative efforts and on protection of the unique interests of public company investors in exit transactions. We have also structured and negotiated technology joint venture, spin-out and “intrapreneur” initiatives and intellectual property "ecosystem" arrangements for public companies and their affiliates that seek financing from joint venture partners, institutional venture capital funds or private equity funds in order to reduce the capital commitments required to launch new ventures or expand the reach of existing core products and services.