Just as starting and financing a tech business are different, an M&A exit for a venture-backed company is also different. Understanding the unique relationship between venture investors and founders as sellers is just part of the equation. Regular interaction with the most active buyers in the tech M&A market is also critical. The Tech Group at Lowenstein Sandler has helped entrepreneurs and VCs close exits to Oracle, Microsoft, Google, SAP, Salesforce, Zynga, and other key industry buyers, giving our lawyers an important window into market terms and trends.
In the past two years, we have closed more than 1,000 growth equity, angel, and private equity investments, cementing our reputation as one of the five most active law firms in the U.S. for private equity and venture capital deals (Dow Jones Private Equity Analyst). As a result, our lawyers understand the thinking of founders and investors about exit opportunities and values across a broad array of tech industry verticals. In addition, because we focus so sharply on the need for connectedness and networks in the venture industry, our unique venturecrush.com programs include business development and M&A executives from most of the active strategic buyers in the tech industry.
Together with our colleagues in our capital markets and M&A practices, we offer insights into the market terms and transaction process for venture-backed companies that make us a leader in the field. To learn more about Lowenstein Sandler's The Tech Group, click here. To learn more about our M&A practice, click here.
Represented the owners of TGaS Advisors in its acquisition by Trinity Partners.
ACV Auctions in its $31 million Series C financing led by Bessemer Venture Partners, Tribeca Ventures, SoftBank NY, and Armory Square Ventures. We previously represented ACV Auctions in its $15 million Series B financing.
Centivo, a new type of self-funded health plan, in its $34 million Series A financing led by Bain Capital Ventures, with additional investments from F-Prime Capital Partners, Maverick Ventures, Bessemer Venture Partners, Ingleside Investors, Rand Capital, Grand Central Tech Ventures, and Oxeon Investments.
Perch, the marketplace for buying and selling homes, in its $30 million Series A financing led by FirstMark Capital, with Juxtapose and Accomplice also participating in the round.
Aetion, Inc. in its $36.4 million Series B financing, in a round led by New Enterprise Associates (NEA) and including, as a new investor, Amgen Ventures, alongside existing investors Flare Capital Partners, Lakestar, and Oxeon Ventures. We previously represented Aetion in is $11.2 million Series A financing led by Flare Capital Partners and joined by Lakestar.
Jeffrey Cohen is quoted inThe New York Times in an article on the fate of startup companies that do not succeed or fail quickly. Cohen observes that venture capital investors may let a company struggle for years: “They’re willing to let it ride a little longer to see whether it explodes.” (subscription required to access article)
Valeska Pederson Hintz is quoted in Bloomberg Law discussing the $20.8 million valuation of Slack, a work-messaging tech unicorn, prior to its direct listing. She explains that, when a company pursues a direct listing instead of an initial public offering, “you need enough brand recognition and people need to understand what your product is.” She also suggests that Slack should look to the Spotify precedent and disclose stock prices from recent private sales in its registration statement ahead of going public: “You have to really help people with price discovery.” (subscription required to access article)
Lowenstein Sandler’s VentureCrushParis is featured in Forbes. The article discusses the vast differences in raising venture capital in Europe versus the United States, noting a valuation gap and quoting Dataiku’s CEO and co-founder Florian Douetteau. VentureCrush brings together founders and venture capitalists that allow startups to build the right network and gain visibility within the industry. Learn more about our upcoming VentureCrush eventshere.
Ed Zimmerman is quoted in Business Insider discussing Europe as an up-and-coming location for VC startups. Zimmerman notes that Europe and places outside of the Bay Area are where investors are finding more value. (subscription required to access article)
Valeska Pederson Hintz is quoted in Forbes in which she discusses Slack, a work-messaging tech unicorn, and the company’s plan to forego a traditional initial public offering (IPO) in favor of a direct listing this year. The article describes this as an unconventional move that could encourage other tech unicorn companies to consider a direct listing in lieu of an IPO, though this isn’t likely to become a mainstream trend. Pederson Hintz suggests that large tech unicorns are uniquely positioned to take advantage of a direct listing for their market debut because they are often well-capitalized and have brand recognition (Wealth Daily also quotes Pederson Hintz on this point). She states that direct listings are faster and cheaper than traditional IPOs. (subscription required to access article)