Friends,
In last month’s newsletter, we discussed how investor expectations for initial public offerings (IPOs), mergers and acquisitions (M&A), and fundraising were shifting amid heightened volatility, geopolitical tension, and a surprise tax overhaul, signaling a new paradigm for venture capital (VC) in 2025.
This month, we explore early signs of recovery in the innovation economy, as recent policy shifts and strategic market activity begin to restore momentum across the venture landscape.
The passage of the July 4 tax package has introduced meaningful incentives for long-term investment, particularly through enhancements to the Qualified Small Business Stock (QSBS) exemption. As outlined in Charting the Path Back to the Good Life: Unblocking the Innovation Markets in 2025, the legislation is expected to encourage renewed risk-taking among founders, employees, and early-stage investors.
Despite this progress, several structural challenges remain. Interest rates continue to constrain capital-intensive sectors, and trade uncertainty is still dampening cross-border collaboration. However, regulatory bodies such as the Department of Justice (DOJ) and Federal Trade Commission (FTC) are beginning to offer greater transparency in merger review processes, which is helping to unlock strategic conversations and reintroduce M&A activity into the market. Large technology buyers are returning with new acquisition models, suggesting a shift in how companies approach growth and talent.
If these trends hold, the downstream effects could be significant. A rebound in M&A could reopen the IPO window, restore liquidity to limited partners, and re-enable venture funds to raise and deploy capital with greater confidence. While the environment remains complex, the foundation for a more stable and resilient innovation economy is beginning to take shape, one that rewards discipline, long-term thinking, and strategic execution.
As always, do not hesitate to contact us if we can help you brainstorm a legal or business challenge you are facing or connect you to a potential investor, professional, or entrepreneur.
Spotlight on AAPI Annual Summer Party
AAPI Annual Summer Party | July 10, 2025
Foley recently had the pleasure of co-sponsoring an inspiring evening of connection and community, co-hosted by Gold House Ventures, Silicon Valley Bank, Escalon Services, Colliers International, and Stand with Asian Americans. Set in the heart of the Bay Area, the event brought together a remarkable group of AAPI founders and investors for a night that celebrated shared experiences, authentic relationships, and exceptional wine.
The evening featured a thoughtfully curated tasting experience led by a sommelier from the Silicon Valley Bank wine team, spotlighting standout Napa Valley wineries. With cozy vibes and unfiltered conversations, the gathering offered a space for AAPI leaders in tech to reflect on their journeys, share their wins, and explore how to uplift one another in meaningful ways. Overall, it was a night of warmth, wisdom, and a shared commitment to representation and success in the startup ecosystem.
Events
Upcoming:
Annual CISO and Founders Breakfast Event | August 5, 2025
Foley is proud to sponsor the third annual CISO & Founders Cyber Breakfast at Black Hat 2025. This exclusive morning gathering brings together top CISOs, founders, and investors for high-impact conversations on the future of cybersecurity. This event offers a curated breakfast experience while building meaningful connections with leaders shaping the industry.
Recent:
Founders, Funders & Friends Summer Social | July 24, 2025
Foley hosted a small gathering in Palo Alto, bringing together a mix of local VCs and startup founders for a relaxed evening of conversation, connection, and some good food and drinks. The event was attended by Foley’s Louis Lehot, Brian Wheeler, Natasha Allen, Gurpreet Bal, Shaalu Mehra, Matt Caplan, and Rajiv Dharnidharka. It was a great success, leading to an incredible night of insights and connection.
5th Annual Tech Summer League Vegas | July 11, 2025 — July 12, 2025
Foley’s Natasha Allen participated in the Annual Tech Summer League in Las Vegas. This event brought together professional athletes, entertainers, top technology founders, investors, and executives in an exclusive schedule that coincided with the NBA Summer League.
Thought Leadership
Charting the Path Back to the Good Life: Unblocking the Innovation Markets in 2025
Louis Lehot shares his insights on the shifting tides of the innovation economy. The passage of a major tax bill preserving and expanding the QSBS exemption is a strong signal to founders and investors alike. With generative AI reshaping industries and capital beginning to flow back into venture, optimism is returning to Silicon Valley. While challenges remain, the foundation for a new era of innovation is taking shape.
Looking Back and Looking Forward: Where Are We in Venture Capital Mid-2025?
At the start of the year, the outlook for venture capital was bright. But just halfway in, the landscape has been reshaped by presidential orders, sweeping tariffs, global conflict, and a surprise tax bill. Louis Lehot and André Thiollier share their insights about those early predictions and explore how M&A, IPOs, and the secondary market are shifting in response.
Board Dynamics in Venture-backed Startups
In a venture-backed startup, the board is not just a formality; it is a powerful force shaping decisions, strategy, and investor confidence. As companies grow, board dynamics shift from founder-led to investor-driven, making composition more critical than ever. From fiduciary duties to conflict resolution and signaling priorities, Natasha Allen breaks down what makes a board effective, and why it could define your company’s future.
Deals
Foley Represents Brazilian Startup Woba in Latest Funding Round
Foley & Lardner LLP represented Woba, a Brazilian provider of a subscription-based, flexible office network, in their US$13.5 million funding round. The round was led by Bewater and included Kaszek, Valor Capital, and additional investors.
Foley Represents HeroDevs in US$125M Strategic Growth Investment from PSG
Foley & Lardner LLP represented HeroDevs, a provider of security and compliance solutions for deprecated open-source software, in securing a US$125 million strategic growth investment from PSG, a growth equity firm focused on software and technology-enabled services companies. Existing investor Album also participated in the round.
Foley Represents Kimmeridge in Growth Equity Investment in 38 Degrees North
Foley & Lardner LLP represented Kimmeridge Energy Management Company, LLC, an alternative asset manager focused on energy investments, in its growth equity investment in 38 Degrees North, a community solar and distributed renewables platform based in Sausalito, California.
Foley Represents Kimmeridge in Simultaneous Sale of U.S. Light Energy and Growth Equity Investment in 38 Degrees North
Foley & Lardner LLP represented Kimmeridge Energy Management Company, LLC, an alternative asset manager focused on energy investments, in the sale of its portfolio company U.S. Light Energy, a community solar developer having approximately 250 megawatts of projects in its pipeline, to 38 Degrees North, a community solar and distributed renewables platform based in Sausalito, California.
Foley Secures Landmark Appellate Victory in Texas Trade Secret Case
Foley & Lardner LLP secured more than US$2 million in attorneys’ fees and costs for its clients in a case involving issues of first impression under the Texas Uniform Trade Secrets Act (TUTSA). The decision, issued on June 26, 2025, by the Fourteenth Court of Appeals in Houston, reverses a significant trial award and shapes the legal landscape in Texas for trade secret and fiduciary duty claims.
Foley Represents Eagle Fire and Majority Owner Rosewood in Sale to Cobepa
Foley & Lardner LLP advised Eagle Fire and its majority owner, Rosewood Private Investments, on the sale of Eagle Fire to Cobepa S.A., a privately held investment company.
Foley Represents Cervin Ventures and Tandem Ventures in Seed Round for Callidus Legal AI
Foley & Lardner LLP represented Cervin Ventures as the lead investor in the US$10 million seed funding round for Callidus Legal AI. The firm also represented investor Tandem Ventures in the transaction. Additional investors included AI Fund, Myriad Venture Partners, Active Capital, and Capital Factory.
Foley Represents NEA as Lead Investor in Series B Funding for Brazilian Startup NG.CASH
Foley & Lardner LLP represented New Enterprise Associates (NEA) as the lead investor in the US$26.5 million Series B funding round for Brazilian fintech startup NG.CASH. NEA was joined by additional investors Quantum Light, Monashees, a16z, Endeavor Catalyst, 17Sigma, and Daphni.
Foley Represents Intra Group of Companies in Acquisition by Gleason Corporation
Foley & Lardner LLP advised Westland, Michigan-based Intra Group of Companies on the sale of 100% of its shares to Gleason Corporation.
Foley Represents Sorcero in Strategic Acquisition of Axiom Health
Foley & Lardner LLP represented Sorcero in its strategic acquisition of Axiom Health, a medtech DaaS (data-as-a-service) company. This marks a pivotal expansion for Sorcero into the medical device market and expands the company’s product suite to include market and product intelligence.
Foley Represents Five Elms Capital in US$51M Series C Investment in Spacelift
Foley & Lardner LLP represented Five Elms Capital, a software-focused growth equity firm, in its lead investment in the US$51 million Series C funding round of Spacelift, an infrastructure orchestration platform that manages the entire infrastructure lifecycle across multi-cloud and hybrid environments.
Foley Represents Verona Pharma in US$10B Acquisition by Merck
Foley & Lardner LLP acted as U.S. intellectual property counsel for UK-based Verona Pharma, a biopharmaceutical company focused on respiratory diseases, in its approximately US$10 billion acquisition by Merck & Co. Inc. (Merck).
Foley Represents Edge Energy in US$12.5M Sale of DJ Basin Assets to Prairie Operating
Foley & Lardner LLP represented Edge Energy II LLC (Edge Energy) in the US$12.5 million sale of oil and gas assets in the Denver-Julesburg (DJ) Basin to Prairie Operating Co. (Nasdaq: PROP).
Foley Represents Amplify Energy in US$23M Sale of Eagle Ford Interests to Murphy Exploration
Foley & Lardner LLP represented Houston-based Amplify Energy Corp. in the US$23 million sale of its non-operated working interests in Eagle Ford assets to Murphy Exploration & Production Co., a unit of Murphy Oil Corp.
Foley Secures Pro Bono Victory, Enabling Graduation of Special Education Student
Foley & Lardner LLP secured a pro bono victory by obtaining critical educational support for a special education student. As a result of Foley’s intervention and litigation initiated seven years earlier, the client was recently able to graduate with a high school diploma and participate in commencement ceremonies.
Foley Represents SiteSpect in Acquisition by Monetate
Foley & Lardner LLP represented SiteSpect, a provider of A/B testing and digital experience optimization solutions, in its acquisition by Monetate, an AI-driven personalization platform.
Foley Represents First Citizens Bank in US$360M Financing for Dimension Energy
Foley & Lardner LLP represented First Citizens Bank as lead debt syndicator in Dimension Energy’s (Dimension) recent US$360 million construction and term financing, the company’s largest to date. The financing will support a 112 MWdc portfolio of 28 community solar projects located in New Jersey, Illinois, Delaware, Virginia, Maine, and Pennsylvania.
Additional Articles of Interest
Nicholas O’Keefe Assesses ‘Golden Share’ in US Steel Deal
Patrick Daugherty Comments on SEC Pause of Grayscale Crypto ETF
Patrick Daugherty on Crypto Legislation — ‘Stars are aligned to pass these bills’
Ruben Diaz Named Notable Managing Partner by Florida Trend
Louis Lehot Assesses Deal Trends in Shifting Market
Louis Lehot Highlights Opportunities and Challenges for M&A Market
Authors
Louis Lehot
Partner, Venture Capital
Silicon Valley / San Francisco / Los Angeles
Contact Now
