After a banner 2021, startup venture financing and exit activity declined steeply in 2023. Economic uncertainty, interest rates, and the aftermath of collapses in banking and crypto slowed the deployment of venture capital and decreased the overall size of rounds. Deals were fewer and farther in between, and founders were being asked to do more with less by the end of 2023. Later stage startups faced increasing burn scrutiny with less opportunities for successful exits at anticipated valuations. Where are we today and what can startups who seek to raise or sell in 2024 expect from the market?
SSM spoke on behalf of the Barristers Solo & Small Firm Section and Diversity Committee for the Bar Association of San Francisco
A lively conversation led by female founders of law firms in the SF Bay Area as they discuss what it means to be a female law firm owner and leader, and how gender and race impact the way they lead, market, and manage their teams. t’s no surprise that, for the majority of the tech industry, 2023 was not a banner year in terms of venture capital financing opportunities and exits. More and more companies continued bridge, extension, or down rounds with existing investors. Yet, while the number of IPOs were down in 2023, the impending public listings of household names like Stripe, Chime, and Reddit may result in a more robust liquidity environment.
What is next for the industry in 2024? What are the top tips for technology companies seeking to raise or sell in 2024? Industry leaders from SSM, Orrick, Morrison Foerster, and Gunderson discussed what they are seeing across various venture and M&A deals at present, and what they predict for 2024. This panel discussed different ways that solo and small firm practitioners can work with attorneys outside our firms to grow our practices, better serve our clients, and take on bigger and more complex projects across a wide variety of practice areas. The discussion addressed various arrangements including co-counseling, consulting, and of-counsel relationships. The conversation will include best practices, practical and ethical considerations, and technological tools for collaboration.
A panel of women in law discussed gender hierarchies and how it applies in the legal world today. Subtopics for discussion included: How women can build up their businesses, and how gender comes into play within our careers.
According to The State of Women in the Labor Market in 2023, 75% of women ages 25–54 are employed today, compared with slightly more than two-thirds a decade ago. Furthermore, 84 percent of employed, prime-age women work full time. Forbes estimates that women account for 70-80% of all consumer purchasing, through a combination of their buying power and influence. As more and more women thrive professionally, how will they invest and spend their money, whether as professional or angel investors, or consumers? Will they be more willing than their male counterparts to buy from and invest in companies founded by women and minorities? In an ever-globalizing economy, companies are now more than ever looking beyond their domestic borders to grow - whether that includes scaling in another country or accessing capital markets and investment overseas. As businesses continue to engage across borders and tap international markets, companies will inevitably face a host of challenges when operating abroad. In this panel, we discussed the legal implications of creating a business presence in the United States. From creating your entity, to intellectual property valuations, to human resources compliance, and even your bank account, panelists from SSM, Aranca, and Vistra went through the fundamentals of positioning your company to scale within the United States.
A panel of powerful female law firm owners discussed race, gender, and intersecting social hierarchies and how they've gotten to where they are today. Subtopics for discussion included: How women, those who identify as female, and women of color build a law practice and how might gender and/or race, for example, come into play, the responsibility of female law firm founders to mentor and sponsor more junior attorneys, and how to build and manage relationships with clients, referral sources, and other third parties external to the firm in light of existing gender and racial biases in larger society.
Austin Humble presented on flipping a Swiss entity in preparation for an American venture financing versus incorporating an American subsidiary of a Swiss entity. He also discussed the typical ways in which early stage companies raise money in the US and current American venture statistics in Q3 2023.
SSM's Lindsey S. Mignano and Courtney T Chew present on various panels at the Bar Association of San Francisco's Women's Impact Network Conference on October 23, 2023. Lindsey presented on a panel entitled, "Embracing Diversity, Equity, and Inclusion in the Legal Profession." Courtney Chew presented on a panel entitled, "AI in the Legal Profession." Austin Humble, our fearless male feminist was in attendance to support the team.
Lindsey S. Mignano, Rita Astoor of Carta, Michelle Edwards of Perkins Coie, Dane H. Patterson of Goodwin, and Heidi Shortz Walas of Gunderson presented at an in-person and Zoom panel entitled, "How to Raise Money: Structuring Venture Deals Across All Stages of Life". Panelists discussed deal terms in early and late-stage venture capital investments; advantages and disadvantages of using convertible notes or SAFEs, versus Model National Venture Capital (NVCA) Series Seed or A documents in priced equity rounds; essential v. "optional" NVCA clauses; how different perspectives and interests of strategic investors and impact investors affect terms; and legal implications of including foreign investors in rounds for US companies.
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