Doreen M. Edelman and Zarema A. Jaramillo discuss "What Tech Companies and Investors Need to Know About CFIUS’s New Foreign Investment Requirements."
The Committee on Foreign Investment in the United States (CFIUS) reviews foreign investment in U.S. companies for national security purposes. Under recent U.S. Department of Treasury regulations, CFIUS has made changes in how it addresses investment involving critical technologies, critical infrastructure, and sensitive data.
These changes will directly impact both large companies and startup ventures. Global businesses need to understand CFIUS’s new framework so that they know when a transaction requires a mandatory CFIUS filing and whether a voluntary filing might protect the transaction from further government intervention. In the wake of the COVID-19 pandemic, Congress is considering even more restrictions to protect American companies from predatory investment. A new bill was just announced that proposes expansion of CFIUS's mandate over companies doing business with China.
We will discuss these and more relevant factors in the decision to file with CFIUS:
- a company’s risk tolerance
- investment needs
- future exit strategy
- home country of the investors
- technologies involved
- industries served
- active nature of the investors
Time: 12-1 p.m. EDT
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