Friends,
We are pleased to begin this month’s newsletter by welcoming Jane Adams and Cathryn Le Regulski to Foley. Their arrivals enhance the firm’s capabilities across the Health Care & Life Sciences, Innovative Technology, Manufacturing, and Energy & Infrastructure Sectors and support the continued growth of Foley’s national corporate platform.
In last month’s newsletter, we examined a record-setting IPO market that continues to reward companies with strong governance, operational discipline, and public company readiness, alongside the growing use of AI-driven acqui-hire transactions and the implications of increasing capital concentration and competition for specialized talent on merger and acquisition strategies.
This month, we see further evidence that, despite a more selective financing and transaction environment, this is a builder’s market. Significant capital flows into AI infrastructure, life sciences, energy, advanced manufacturing, and other innovation-driven sectors, while strategic acquirers are actively pursuing growth, capabilities, and competitive advantage. The market may be rewarding discipline more than exuberance, but companies with strong fundamentals and differentiated offerings remain attractive to investors and buyers.
Our deal sheet this month reflects that reality. Companies are raising capital, forming strategic partnerships, commercializing new technologies, and completing acquisitions across a range of industries. Taken together, these transactions point to more than isolated pockets of activity. They reflect an economy in which businesses are investing, innovating, and repositioning for long-term growth.
Recent PitchBook data shows venture fundraising has accelerated in 2026, although much of that capital has been raised by a relatively small group of established managers. At the same time, investors remain focused on liquidity, driving continued interest in secondary transactions, continuation vehicles, and other structured solutions. For founders and investors alike, understanding exit economics, capital structures, and transaction terms is an important part of long-term value creation.
The M&A market presents a similarly nuanced picture. Overall deal value has recovered strongly, supported by large strategic transactions and sustained investment in AI-related infrastructure. Buyers are also placing greater emphasis on operational performance, growth durability, and financial discipline, creating opportunities for companies that enter fundraising and transaction processes well prepared and with a compelling growth story.
Across AI, life sciences, energy, defense, advanced manufacturing, and other innovation-driven industries, companies are building, raising capital, and pursuing strategic transactions. While today’s market demands preparation and execution, that discipline is helping distinguish the businesses best positioned for long-term success.
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 CFOs on the Bay: A Private Yacht Excursion
CFOs on the Bay: A Private Yacht Excursion | August 21, 2026
Foley was proud to host a recent chief financial officer (CFO) forum in partnership with Open Future Forum, Heffernan Insurance Brokers, Silicon Valley Bank, and Protiviti, bringing together venture-backed and growth-stage finance leaders for an afternoon of peer engagement on San Francisco Bay. Designed as a highly curated gathering of CFOs, finance executives, and trusted advisors, the event provided a unique opportunity for participants to exchange perspectives on the challenges and opportunities shaping today’s business environment. Free from formal presentations and structured programming, the forum encouraged candid, off-the-record conversations focused on the practical realities of leading finance functions in innovative, high-growth companies.
The event highlighted the value of connecting finance leaders in a setting that fostered meaningful dialogue and relationship-building. Through open discussion and peer-to-peer engagement, attendees shared insights on navigating growth, managing evolving business priorities, and supporting long-term company success. By bringing together leaders facing similar opportunities and challenges, the forum created an environment for authentic conversations, valuable networking, and the exchange of practical ideas that can help finance teams and their organizations continue to scale and thrive.
Events
Upcoming:
Non-Dilutive MedTech/HealthTech Funding | September 2, 2026
Foley is looking forward to hosting a panel discussion and networking reception focused on non-dilutive funding opportunities for MedTech and HealthTech companies. Industry leaders and experienced advisors will discuss the path to securing grants, strategic partnerships, and other sources of non-dilutive capital, including common challenges, key considerations, and practical strategies for success. The program will conclude with a networking reception in Foley’s Washington, D.C. office, offering attendees the opportunity to connect with fellow innovators, investors, and industry professionals.
Foley GC Lunch | September 11, 2026
Foley is excited to host the next installment of its GC Lunch Series, bringing together general counsel and chief legal officers (CLOs) for an informal, peer-driven discussion on some of the most pressing issues facing legal leaders today. The conversation will explore GC and CLO compensation trends, incentive structures, career mobility, succession planning, and the evolving expectations placed on legal executives by boards, CEOs, and investors. Featuring insights from leaders in executive compensation, venture capital, and in-house legal management, the lunch will provide a valuable opportunity for attendees to exchange perspectives, share experiences, and build meaningful connections with fellow legal department leaders in a candid and collaborative setting.
Hard Things | September 28, 2026
Foley is pleased to co-organize Hard Things with Mavka Capital, an invite-only event series that brings together founders, investors, and industry leaders building the next generation of Physical AI. Through candid conversations and curated networking, the series explores the technologies, capital, and commercial opportunities driving the shift from cloud-based intelligence to AI embedded in machines and real-world systems.
Recent:
YC Founders Summer Mixer | August 17, 2026
Foley and Open Future Forum welcomed current and former Y Combinator founders, along with members of the broader startup ecosystem, to an evening of networking and peer-to-peer engagement in San Francisco. The gathering provided an opportunity for founders to reconnect with colleagues, build new relationships across YC cohorts, and exchange perspectives on company building, fundraising, and growth.
Ready for Anything: Preparing for IPOs, SPACs, and Unexpected Capital Market Shifts | August 20, 2026
Foley participated in an executive roundtable hosted by Robert Half and Protiviti, bringing together CFOs and finance leaders for a candid discussion on preparing for multiple paths to liquidity in today’s evolving capital markets environment. With Louis Lehot serving as a speaker, attendees explored IPO readiness, the changing special purpose acquisition company (SPAC) landscape, private equity dynamics, and dual-track exit strategies. The discussion provided practical perspectives on navigating market volatility, evaluating strategic alternatives, and maintaining flexibility amid shifting market conditions.
TDK 100X 2026 | August 25–27, 2026
Foley joined TDK Ventures‘ 100X 2026, an invitation-only summit that brought together founders, investors, institutional partners, and industry leaders to explore the technologies and trends shaping the future of industry. Through keynote discussions, panels, fireside chats, and networking opportunities, attendees exchanged perspectives on topics including artificial intelligence, digital transformation, and the energy transition. The highly curated program fostered meaningful dialogue among entrepreneurs, corporate leaders, and investors, creating opportunities to build relationships, share insights, and explore new avenues for innovation and collaboration.
Pivots & Power Seats: A Woman’s Executive Panel on Career Transitions & Board Readiness | August 27, 2026
Foley hosted senior leaders and executives for a discussion focused on board readiness and career pivots, two themes shaping modern leadership journeys. The program featured insights from accomplished executives and board leaders, including Kelly Boyd, who shared perspectives on positioning for board service, building executive visibility, and navigating career transitions that can expand long-term leadership opportunities. Attendees explored practical strategies for strengthening board candidacy, leveraging transferable skills, and evaluating career moves that support continued professional growth.
Thought Leadership
What Makes a Great CFO
The CFO’s role now extends far beyond reporting and compliance, serving as the organization’s most trusted source of financial truth as companies pursue increasingly ambitious growth strategies. While business leaders are encouraged to champion vision and opportunity, CFOs are responsible for ensuring that strategy aligns with operational and financial reality, communicating risks early, and maintaining credibility with boards, investors, and management teams. Success depends on combining financial experience with proactive decision-making, strong governance, and the ability to translate complex data into clear business insights. As finance leaders take on expanding responsibilities in areas such as AI investment, risk management, and capital allocation, trust, transparency, and disciplined execution form the foundation of effective leadership.
The Venture Market Is Not Recovering. It Is Reorganizing.
Venture capital fundraising has accelerated, and AI-driven investing remains a defining force in the market, yet capital is becoming increasingly concentrated among a small group of established firms. While fund performance and valuations have improved, liquidity is still constrained, exit economics have become more challenging, and transaction structure is playing a larger role in determining outcomes. For founders, investors, and fund managers alike, success depends on understanding ownership dilution, liquidation preferences, secondary liquidity opportunities, and the realities of today’s exit environment.
The Chief Everything Officer
Emerging growth companies face increasingly complex operating environments, requiring CEOs to balance strategic vision, operational execution, fundraising, talent management, and stakeholder communication, often simultaneously. While investors, employees, and customers each see only part of the business, CEOs bear responsibility for the whole enterprise and are frequently required to make critical decisions with limited information and little room for error. Success depends on building resilient systems, maintaining financial and operational preparedness, surrounding the company with trusted advisors, and developing the discipline to act decisively while adapting to changing circumstances. While companies grow and challenges become more complex, strong support networks, thoughtful delegation, and sustained personal resilience remain essential to navigating the unique demands of the CEO role.
Beyond the Headlines: A Look at Q2 Venture Activity
Record venture capital funding levels may suggest a robust market, but underlying data tells a more nuanced story. While headline funding totals are strong, overall deal activity has fallen to decade lows, reflecting a market in which a handful of mega-rounds account for a disproportionate share of investment dollars. At the same time, exit activity remains subdued, and fundraising conditions continue to be challenging for many companies outside the highest-growth categories. As a result, founders should not view rising funding totals as evidence of a broadly improved fundraising environment, but instead recognize the growing importance of differentiation, investor demand, and sector-specific momentum in attracting capital.
The M&A Recovery: Two Markets Moving at Different Speeds
M&A activity has rebounded, with headline deal values reaching levels not seen since 2021, but the market remains highly bifurcated. While AI infrastructure assets continue to command premium valuations and attract significant strategic interest, many middle-market companies still face valuation pressure, cautious buyers, and tighter financing conditions. As a result, favorable market statistics do not necessarily translate into improved transaction opportunities for all businesses. Companies considering strategic transactions should focus on demonstrating strong fundamentals, maintaining valuation discipline, and clearly articulating how emerging technologies affect their competitive position, as preparedness and execution will increasingly determine success in an uneven deal environment.
Deals
Foley Represents Gatik in $200M Series D Funding Round and Partnership with PepsiCo
Foley represented Gatik, the leader in autonomous trucking, in their $200 million Series D financing, as well as the company’s partnership with PepsiCo. The round was led by Qatar Investment Authority and Koch Disruptive Technologies, with participation from Millennium Management, ARK Invest, Intact Private Capital, and others.
Foley Represents Palona AI in $20M Series A Funding Round
Foley represented Palona AI, a startup building an intelligence operating layer for physical businesses, in its $20 million Series A funding round. The round, which included converted simple agreements for future equity, was led by Ardenwood Ventures with participation from CrimsonOx, UpHonest, Turbo, Llama Ventures, Neo, Fusion Fund, Defy, and Maynard Webb.
Foley Represents LG Technology Ventures as Investor in $125M Series C for Zenity
Foley represented LG Technology Ventures as an investor in the $125 million Series C round for Zenity, the AI security and governance platform purpose-built for AI agents. The round was led by Norwest and included additional new investors Qumra Capital, SoftBank Vision Fund 2, and Hitachi Ventures, alongside existing investors Vertex Ventures, Third Point Ventures, DTCP, and Intel Capital.
Foley Represents Origin Ventures and Venture 53 as Investors in $25M Growth Equity Investment in ClearJet
Foley represented Origin Ventures and Venture 53 as investors in the $25 million growth equity investment in ClearJet, a leader in parcel logistics infrastructure and orchestration for brands, e-commerce shippers, and 3PLs. The round was led by Edison Partners with additional participation from Salt VC and SpringTime Ventures.
Foley Guides M2S Group, a Wynnchurch Capital Portfolio Company, in Acquisition of Heartland Label Printers
Foley represented M2S Group, a Wynnchurch Capital portfolio company, in the acquisition by its Iconex business of Heartland Label Printers, a North American manufacturer of direct thermal, thermal transfer, linerless, and specialty variable information labels.
Foley Advises LEO III Fund in Acquisition of JTEKT’s Automotive Steering Business for European OEMs
Foley advised LEO III Fund, managed by DUBAG Group, in its acquisition of JTEKT Corporation’s automotive steering business for European OEMs.
Foley Represents Mirantis in Completed Acquisition by IREN
Foley represented Mirantis, a leading provider of cloud software and services, in their completed acquisition by IREN Limited (Nasdaq: IREN).
Additional Articles of Interest
Louis Lehot Weighs in on Acceleration of Software Industry M&A
Foley Recognized Across Five Categories at Law.com’s New England Legal Awards
Michael Okaty Named to Orlando Magazine’s Hall of Fame
Louis Lehot and Andre Thiollier Discuss AI, Corporate Law, and Career Development
Author
Louis Lehot
Partner, Venture Capital
Silicon Valley | San Francisco | Los Angeles
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