Friends,
In last month’s newsletter, we examined a rapidly improving initial public offering (IPO) market, the proposed Securities and Exchange Commission (SEC) reforms aimed at expanding access to the public markets, and the growing impact of artificial intelligence (AI) on transaction diligence.
This month, we explore how a record-setting IPO market continues to reward companies that have invested early in governance, operational discipline, and public company readiness, while examining how AI is transforming the merger and acquisition (M&A) landscape through increasingly complex acqui-hire structures. We also look at what founders, investors, and management teams should consider as capital concentrates around scaled market leaders and demand for specialized AI talent reshapes dealmaking strategies.
The IPO market continues to reward preparation over enthusiasm. New data shows U.S. IPO proceeds are already on pace to set a record in 2026, driven by a handful of large-scale offerings and a growing concentration of capital in companies with strong fundamentals, clear growth narratives, and the operational maturity to withstand public market scrutiny. An open window does not mean every company should rush through it. The businesses succeeding today are the ones that invested early in governance, financial discipline, and a compelling equity story, while those waiting for the perfect market moment may find that readiness still matters more than timing.
At the same time, AI is reshaping the M&A landscape through increasingly sophisticated acqui-hire structures. What was once a straightforward talent acquisition has evolved into a range of transactions designed to acquire engineers and technology while minimizing regulatory hurdles. Founders should look beyond headline valuations and focus on deal structure, investor preferences, employee protections, and tax consequences. In many cases, the real negotiation is not the purchase price itself but how value is allocated between the cap table and retention packages. As demand for AI talent remains intense, companies should remember that the best deals align incentives across founders, investors, and employees, rather than rewarding only the people leaving with the buyer.
As always, please do not hesitate to contact us if we can help you brainstorm solutions to a legal or business challenge or connect you to a potential investor, professional, or entrepreneur.
Spotlight on AI as a Force Multiplier: Scaling Lean Finance Teams Without Adding Headcount
AI as a Force Multiplier: Scaling Lean Finance Teams Without Adding Headcount | July 22, 2026
Foley was proud to participate in a recent panel discussion for venture-backed chief financial officers (CFOs) and finance leaders focused on how AI is transforming the finance function and reshaping expectations for high-growth companies. Bringing together experienced finance executives actively implementing AI within their organizations, the conversation examined practical applications across financial close, forecasting, reporting, compliance, and cash management, while also addressing the governance, data integrity, and organizational considerations that come with broader adoption. Through candid, operator-focused discussion, attendees gained insight into where AI is delivering measurable value today and how finance teams are adapting to operate with greater efficiency and sophistication.
The session highlighted the increasing importance of AI as a strategic tool for finance leaders navigating growing demands from boards, investors, and stakeholders. Panelists shared real-world perspectives on accelerating planning and reporting processes, managing the human side of AI adoption, and preparing organizations for heightened expectations around operational maturity. Designed as a peer-to-peer exchange, the discussion provided attendees with actionable frameworks and lessons learned from fellow operators, reinforcing how thoughtful AI implementation can help finance teams scale effectively while positioning their companies for future fundraising, M&A, and growth opportunities.
Events
Upcoming:
YC Founders Summer Mixer | August 17, 2026
Foley is excited to support this gathering that will bring together current Y Combinator (YC) founders, alumni, and select members of the broader founder ecosystem for an evening of networking and peer-to-peer engagement in San Francisco. Hosted by Foley and Open Future Forum, the event will provide a relaxed setting for founders to reconnect with familiar faces, build new relationships across YC batches, and engage in meaningful conversations over drinks and light bites. With no formal presentations or pitching, the focus will remain on fostering authentic connections, encouraging the exchange of ideas, and strengthening ties within a highly curated community of entrepreneurs, investors, and ecosystem partners.
CFOs on the Bay: A Private Yacht Excursion | August 21, 2026
Foley is proud to host this invitation-only gathering, in partnership with Open Future Forum, Heffernan Insurance Brokers, Silicon Valley Bank, and Protiviti, that will bring together venture-backed and growth-stage finance leaders, along with a select group of trusted advisors, for an afternoon of peer engagement on San Francisco Bay. The event will provide a unique setting for CFOs and finance executives to exchange insights, discuss emerging challenges and opportunities, and build meaningful relationships. Designed around candid conversation rather than formal programming, the forum will foster valuable connections and the sharing of practical perspectives among a highly curated group of leaders shaping the future of innovative companies.
TDK 100X 2026 | August 25–27, 2026
Foley will attend 100X 2026, TDK Ventures‘ flagship invitation-only summit, which will convene founders, investors, institutional partners, and industry leaders for three days of discussion focused on emerging technologies and innovation. Held in Burlingame, California, the program will explore the intersection of AI, digital transformation, and the energy transition through a series of keynote discussions, panels, fireside chats, and networking events designed to foster meaningful dialogue and long-term collaboration. Bringing together a highly curated community of entrepreneurs, corporate leaders, and investors, the summit will provide opportunities to exchange perspectives, strengthen relationships, and engage with the ideas and technologies shaping the future of industry.
Recent:
Investors Summer Drinks | July 27, 2026
Foley and Open Future Forum welcomed venture capital investors, corporate venture leaders, and other members of the strategic capital community to a private summer reception focused on fostering connections across the innovation ecosystem. The evening offered a setting for investors, founders, and operators to engage with peers, share perspectives on the market, and build relationships with others active in emerging growth sectors. By keeping the format intentionally informal and discussion-driven, the gathering encouraged genuine dialogue and networking among professionals with a shared interest in innovation and long-term growth.
AAPI Annual Summer Party | July 15, 2026
Foley joined Gold House, Jade Society, Silicon Valley Bank, Colliers International, and Armanino in supporting an annual networking reception for AAPI founders, investors, and community leaders in San Francisco. Held on a rooftop venue overlooking the city, the evening brought together members of the innovation and venture ecosystem for conversation, community-building, and relationship development. Attendees enjoyed a curated Napa Valley wine tasting led by members of the Silicon Valley Bank wine team, live jazz, and dinner while connecting with peers in a welcoming and informal setting. The event provided opportunities for founders and investors across stages to strengthen existing relationships, make new introductions, and exchange perspectives with others navigating similar experiences. Designed to foster authentic engagement, the gathering celebrated the contributions of AAPI leaders while encouraging meaningful connections across the broader startup and investment community.
YC Founders Wine & Cocktails Mixer | July 8, 2026
Foley supported a Y Combinator founders-only networking reception in San Francisco that brought together current batch participants, YC alumni, and select members of the broader YC community for an evening focused on relationship-building and peer engagement. The gathering featured wine tasting, cocktails, light bites, and founder-to-founder conversation in an informal setting that emphasized meaningful connections over formal programming. The event provided attendees with an opportunity to strengthen existing relationships, exchange perspectives, and expand their networks within a highly curated community of entrepreneurs, investors, and ecosystem supporters.
Thought Leadership
What an Acqui-Hire Looks Like for an AI Startup Today
As AI talent remains one of the most sought-after assets in the technology sector, acqui-hires have evolved from simple talent acquisitions into increasingly complex transactions that blend hiring, licensing, and strategic investment objectives. Rather than pursuing traditional acquisitions, many buyers are structuring deals to acquire key personnel and technology while minimizing regulatory scrutiny and preserving financial flexibility. For founders, however, transaction structure often matters more than headline valuation, with outcomes shaped by liquidation preferences, retention packages, investor rights, governance considerations, and tax treatment. As the market for AI talent continues to intensify, successfully navigating an acqui-hire requires careful planning, strong stakeholder alignment, and a clear understanding of how deal structure can impact both immediate proceeds and long-term value.
Seoul Bets Big: What South Korea’s $518 Billion Semiconductor Gamble Means for Global Tech Companies
As governments around the world race to secure leadership in AI, South Korea is pursuing one of the most ambitious industrial strategies in recent memory, combining semiconductor manufacturing, advanced packaging, AI infrastructure, and humanoid robotics into a coordinated national effort. Backed by more than $500 billion in corporate commitments and accelerated development timelines, the initiative reflects a growing recognition that competitiveness in the AI era will be determined not only by innovation, but by control of the underlying infrastructure that powers it. For technology companies, investors, and supply-chain participants, the implications extend well beyond fabrication capacity, bringing heightened focus to export controls, regulatory compliance, governance, and long-term commercial strategy. As industrial policy and corporate decision-making become increasingly intertwined, companies that proactively align legal, operational, and geopolitical considerations with their growth plans will be better positioned to navigate a global technology landscape that is becoming more strategic, interconnected, and complex.
Is Your Company IPO-Ready? The 12-Month Checklist
As the IPO market continues to rebound, many private companies are shifting their focus from whether a public offering is possible to whether they are truly prepared to execute one successfully. While strong issuance volumes and investor demand have reopened the window for new listings, IPO readiness remains a long-term operational undertaking rather than a transactional decision. Achieving public-company status requires coordinated preparation across financial reporting, tax planning, governance, internal controls, cybersecurity, equity administration, and executive compensation, often beginning a year or more before a filing. The companies best positioned to capitalize on favorable market conditions are typically those that invested early in building the infrastructure, compliance frameworks, and management discipline required of public issuers. In an environment where regulatory scrutiny, investor expectations, and market selectivity remain high, IPO success is increasingly determined not by timing the market, but by the rigor and foresight applied long before the offering process begins.
Aging Assets and the Patience Test for Private Equity
As private equity enters the second half of 2026, expectations for a broad market recovery remain constrained by the same challenges that have defined the past several years, particularly a growing backlog of aging portfolio companies held well beyond traditional investment horizons. While dealmaking and exits improved from recent lows, elevated interest rates, valuation gaps, and a subdued IPO market continue to limit liquidity, placing pressure on sponsors, investors, and fund managers alike. Increasingly, these aging assets present not only financial concerns but also governance, fiduciary, valuation, and conflict-management considerations that demand careful oversight and disciplined execution. As firms explore secondary sales, continuation vehicles, recapitalizations, and other liquidity solutions, the focus has shifted from aggressive acquisition strategies to effective portfolio management and defensible decision-making. Ultimately, the path to a healthier private equity ecosystem will rely on improved exit conditions, stronger alignment between buyers and sellers, and market participants’ ability to pair creativity with sound governance, transparency, and robust deal structures.
Deals
Foley Represents Samsung Ventures as Investor in $300M Financing Round for Walden Robotics
Foley represented Samsung Ventures as an investor in the $300 million funding round for Walden Robotics, a full-stack Physical AI company building and deploying general-purpose robots that continuously learn and improve while performing real work.
Foley Advises Iris Telehealth on Secured Financing Commitment from Symbiotic Capital
Foley advised Iris Telehealth, a leading provider of transformative behavioral health services for health systems and community healthcare organizations, on a secured financing commitment from Symbiotic Capital.
Foley Represents Drizzy in US Structuring and Pre-Seed Funding
Foley represented Drizzy, the Sydney-founded peanut butter brand headquartered in the United States and Australia, in connection with its U.S. structuring and pre-seed funding round backed by RiverPark Ventures, Nucleus Ventures, and Alexis Ohanian.
Foley Private Equity Team Advises Wynnchurch Capital and FloWorks in $1.6 Billion Sale of FloWorks to Ferguson Enterprises
Foley served as legal advisor to Wynnchurch Capital and FloWorks in Wynnchurch’s definitive agreement to sell FWI Holdings Inc. (FloWorks) to Ferguson Enterprises Inc. (NYSE: FERG; LSE: FERG). The cash transaction values FloWorks at an enterprise value of approximately $1.6 billion.
Foley Represents Principal Industries, a Wynnchurch Capital Portfolio Company, in Acquisition of GENLED Brands
Foley represented Principal Industries, a Wynnchurch Capital portfolio company and leading provider of light emitting diode (LED) components and engineered assemblies, in its acquisition of GENLED Brands.
Foley Secures First Circuit Victory for Daimler Truck North America in Dormant Commerce Clause Dealer Law Appeal
Foley represented Daimler Truck North America LLC (DTNA) in a significant victory before the U.S. Court of Appeals for the First Circuit in Rhode Island Truck Center, LLC v. Daimler Trucks North America, LLC.
Foley Represents Wynnchurch Capital in Sale of Premier Forge Group
Foley served as legal advisor to Wynnchurch Capital in connection with the sale of aerospace and defense manufacturer Premier Forge Group Holdings Inc. (PFG) to H.I.G. Capital.
Additional Articles of Interest
The Force Multiplier: What CFOs Are Actually Doing With AI
QSBS Trust Stacking Comes Under the Microscope
What Directors Should be Asking About the Audit and the Auditors Now
Author
Louis Lehot
Partner, Venture Capital
Silicon Valley | San Francisco | Los Angeles