Friends,
In last month’s newsletter, we highlighted continued investment momentum across AI, life sciences, energy, defense, and advanced manufacturing, despite a more selective financing and transaction environment. We also explored accelerating venture fundraising, renewed M&A activity, and the growing importance of liquidity planning, transaction readiness, and disciplined execution as companies pursue growth, strategic transactions, and long-term value creation.
This month, we see continued evidence that businesses, investors, and founders are adapting successfully to a more disciplined capital markets environment. Across growth equity, venture capital, private equity, and strategic M&A, companies are raising capital, pursuing acquisitions, strengthening operations, and preparing themselves for long-term growth. While market participants remain selective, the strongest businesses attract investment, secure financing, and execute transactions that support growth and innovation.
Several themes emerge from this month’s developments. Transaction readiness has become an important competitive advantage, particularly as buyers, investors, and lenders evaluate companies well before a formal process begins. Preparation, governance, and operational discipline often determine which organizations have the greatest flexibility when strategic opportunities arise. Whether the path leads to a financing, acquisition, strategic partnership, or public offering, organizations that invest in readiness today are better prepared to act on their own timetable tomorrow.
The market rewards companies operating at the intersection of innovation and scale. Large growth financings, significant health care investments, renewed activity in software and infrastructure, and sustained demand for AI-enabling technologies all point to continued confidence in transformative sectors of the economy. Capital is flowing toward businesses that can demonstrate durable growth, differentiated products, and clear paths to value creation, even as investors remain thoughtful about deployment decisions.
Financing markets are creating new opportunities for well-prepared organizations. While higher borrowing costs are influencing transaction structures and valuation models, growth equity, strategic M&A, and alternative capital solutions remain active sources of funding and liquidity.
Across technology, health care, life sciences, energy, and data infrastructure, the common theme remains execution. Organizations that understand their strategic options, maintain operational readiness, and focus on long-term growth are finding opportunities to grow, transact, and innovate. As preparation and execution become greater differentiators, they are helping distinguish the businesses best positioned for success in the years ahead.
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 Buy, Sell, or Wait: M&A Decisions CFOs Are Making Now
Buy, Sell, or Wait: M&A Decisions CFOs Are Making Now | September 22, 2026
Foley was proud to host Buy, Sell, or Wait: M&A Decisions CFOs Are Making Now, a program that brought together CFOs, investors, and advisors for a thoughtful discussion on the factors shaping M&A activity in today’s market. Featuring insights from distinguished leaders across investment banking, private equity, corporate legal leadership, and venture investing, the event examined the valuation expectations, deal timing considerations, diligence priorities, and broader market dynamics influencing strategic decision-making. Through an engaging panel discussion and interactive audience participation, attendees explored how organizations are evaluating opportunities amid evolving economic and transaction environments.
The event underscored the value of candid discussion among business and financial leaders navigating similar strategic decisions. Conversations extended beyond the formal program as participants exchanged perspectives on navigating uncertainty, preparing for potential transactions, and positioning their organizations for long-term success. A recurring theme throughout the discussion was that while market conditions continue to shift, companies that remain prepared and strategic in their approach will be best able to capitalize on opportunities as they emerge. The program fostered meaningful connections among attendees and provided practical insights for leaders evaluating whether now is the right time to buy, sell, or wait.
Events
Upcoming:
Ready for Anything: IPOs, SPACs and Capital Market Shifts | October 6, 2026
Foley looks forward to hosting an exclusive gathering of CFOs, founders, investors, and advisors for a candid discussion on navigating today’s dynamic liquidity and capital markets environment. With Louis Lehot as a panelist, the program will explore topics including IPO readiness, SPAC transactions, private market dynamics, and strategic exit planning, while providing attendees with practical insights drawn from real-world transaction experience. Through an interactive panel discussion, open Q&A, and networking reception, participants will gain practical perspectives on capital markets readiness, strategic alternatives, and transaction planning while building relationships with fellow business and finance leaders.
Founders & Funders: SF VC Reverse Pitch — SF Tech Week 2026 | October 8, 2026
Foley is participating in Founders & Funders: SF VC Reverse Pitch during SF Tech Week, a networking-focused event designed to connect founders with leading venture capital firms and investors in the San Francisco innovation ecosystem. The program will create a forum for founders and investors to connect, discuss fundraising trends, and explore new investment and growth opportunities.
Funds Focus San Francisco | October 12, 2026
Foley, in collaboration with Jersey Finance and CalALTs, is hosting an exclusive program for U.S. fund managers exploring international fundraising opportunities and fund domicile considerations. The event will bring together fund sponsors, investment professionals, and industry advisors for a practical discussion on accessing global capital sources and evaluating fund structures across key jurisdictions, including Delaware, Cayman, Luxembourg, Ireland, and Jersey. Attendees will gain insights into the strategic, operational, and investor considerations that can influence fund formation decisions in an increasingly global investment landscape.
Investors on the Bay A Fall Mixer | October 23, 2026
Foley is looking forward to Investors on the Bay A Fall Mixer, an exclusive networking experience that will bring together a curated group of venture capital, corporate venture, growth equity, and strategic investors for an afternoon of relationship-building aboard a private yacht on San Francisco Bay. The event will offer investors a unique setting to discuss emerging investment trends, strategic partnerships, and innovation across sectors including AI, enterprise technology, health care, fintech, and infrastructure. Through candid, off-the-record conversations, the gathering will foster new relationships and thoughtful dialogue among investors helping to shape the future of the innovation economy.
One Way Summit 2026 | October 28, 2026
Louis Lehot will participate as a guest speaker in the One Way Summit 2026, an annual gathering that brings together immigrant founders, venture capital investors, and innovation leaders to explore the impact of global talent on entrepreneurship and company building. Focused on highlighting the contributions of immigrant founders who are driving growth across the technology ecosystem, the event will feature discussions on innovation, venture capital, scaling high-growth businesses, and the unique advantages that diverse perspectives bring to the startup community.
GC Lunch | October 28, 2026
Foley will co-host an exclusive lunch for general counsel leaders alongside Lockton and Simmons & Simmons, bringing together a select group of senior legal executives for candid, peer-to-peer discussions on the issues shaping today’s legal and business landscape. The program will encourage thoughtful dialogue among general counsel, offering a forum to discuss shared priorities, learn from peers, and strengthen professional relationships.
Recent:
Sidebar Summit — SF Tech Week 2026 | October 5, 2026
Foley was proud to participate in Sidebar Summit, a premier gathering held during SF Tech Week that convened founders, venture capital investors, institutional allocators, and business leaders for discussions on the trends shaping technology, investing, and global markets. The event highlighted emerging trends in innovation, capital formation, and venture investing while creating opportunities for founders, investors, and industry leaders to connect and share ideas. Louis Lehot served as a featured speaker, contributing insights drawn from his experience advising emerging growth companies, venture-backed businesses, and investors.
YC Founders Mixer — SF Tech Week 2026 | October 5, 2026
Foley co-hosted an exclusive networking reception during SF Tech Week that brought together Y Combinator founders, alumni, and venture-backed entrepreneurs for an evening focused on founder engagement and community building. Hosted in partnership with Open Future Forum and Agentic Fabriq, the event provided a curated setting for founders across stages of growth to connect with peers, exchange insights, and strengthen relationships within the startup ecosystem. By emphasizing relationship-building and peer connections over formal programming, the gathering encouraged authentic conversations and strengthened ties across the YC founder community.
Hard Things | September 28, 2026
Foley partnered with Mavka Capital to co-organize Hard Things, an invite-only event series that convened founders, investors, and industry leaders focused on advancing the next generation of Physical AI. Through candid discussions and curated networking opportunities, participants explored the technologies, funding strategies, and commercial developments accelerating the transition from cloud-based intelligence to AI embedded in machines and real-world systems.
Primary VC Founders Dinner | September 15, 2026
Foley’s Heather Miles, Matt An, Chris Ullman, and Kevin McNiff attended the Primary VC Founders Dinner, an invitation-only gathering that brought together founders, investors, and leaders from across the venture capital ecosystem for an evening of networking and relationship-building. The event brought together entrepreneurs and investors shaping emerging industries and sparked discussions around growth, investment activity, and company-building. Through informal conversations and networking, the dinner strengthened relationships across the startup and venture capital ecosystem.
Foley GC Lunch | September 11, 2026
Foley hosted another installment of its GC Lunch Series, bringing together general counsel and CLOs for an informal discussion focused on key issues facing today’s legal leaders. The conversation examined trends in GC and CLO compensation, incentive structures, career mobility, succession planning, and the evolving expectations of boards, CEOs, and investors. Drawing on perspectives from leaders in executive compensation, venture capital, and in-house legal management, the program encouraged candid discussion among legal leaders on compensation trends, leadership development, and the evolving role of the modern general counsel.
Thought Leadership
Control Capital for Growth. Where Venture Ends and Buyouts Begin.
Transaction readiness is becoming one of the most valuable differentiators for companies pursuing growth, investment, or strategic transactions. Buyers, lenders, and investors are evaluating organizations long before a formal process begins, making preparation, governance, and financial transparency critical strategic advantages. This article explores how leaders are navigating decisions to buy, sell, or hold, what current deal structures reveal about investor priorities, and how changing financing conditions are reshaping valuations and transaction opportunities. Learn why readiness, not timing, is increasingly determining which businesses command the strongest outcomes in today’s market.
Record Startup Shutdowns and a Market That Is Moving Forward
Venture investors, founders, and boards are placing renewed emphasis on sustainable growth, capital efficiency, and stronger operating fundamentals as the startup ecosystem continues to mature. While company closures have risen as the market works through excesses from the low-interest-rate era, many leaders are viewing this period as an important reset that is reallocating talent, capital, and resources toward the next generation of high-growth businesses. Understanding how financing trends, investor expectations, and market cycles are evolving can help companies navigate today’s environment while preparing themselves for future success.
Private Equity’s Hard Year Has Real Openings
Private equity firms are finding new avenues for value creation as markets adapt to higher borrowing costs, evolving geopolitical dynamics, rapid advances in AI, and increased pressure to return capital to investors. While fundraising and deal activity remain concentrated among top-performing sponsors, firms are differentiating themselves through operational expertise, sector specialization, disciplined exit planning, and investments in areas such as energy and digital infrastructure. As investor focus shifts toward realized returns, organizations that respond effectively to changing market conditions and regulatory developments will be well positioned to outperform.
Billion-Dollar Rounds Are Rewriting the Startup Playbook — Is Your Company Ready?
Record venture capital investment is helping reshape how many companies approach growth, fundraising, and long-term strategy. Much of this activity is being driven by billion-dollar financings, particularly among AI organizations, creating new opportunities for businesses to remain private longer, pursue ambitious expansion plans, and fund large-scale infrastructure investments. For founders and boards, understanding how mega-rounds influence valuation expectations, governance, capital structure, and exit planning is becoming essential to maintaining flexibility and supporting future growth.
Where We Are on Software M&A
Software companies are generating solid financial results, and strong performers are helping drive renewed momentum across the M&A market. Growth rates, profitability, and AI capabilities are playing a larger role in determining valuation and transaction activity, while many slower-growing businesses are attracting interest as take-private and consolidation candidates. At the same time, regulatory scrutiny, governance considerations, and AI diligence requirements are reshaping transaction processes. Companies that prepare early for strategic alternatives, diligence reviews, and valuation discussions will be best positioned to achieve favorable outcomes as software deal activity evolves.
Deals
Foley Represents EMS, a Wynnchurch Portfolio Company, in Acquisition of AMD Supply
Foley represented EMS, a value-added distributor of aluminum products and a Wynnchurch Capital portfolio company, in its acquisition of AMD Supply, a distributor of fencing, hurricane shutters, and aluminum products serving the Southeastern United States.
Foley Represents Pilgrim in Seed Financing
Foley represented Pilgrim, a biodefense technology company developing next-generation airborne biosurveillance systems, in its seed financing led by Buckley Ventures.
Foley Represents Elastic in Acquisition of Deductive AI
Foley represented Elastic in their acquisition of Deductive AI, an AI-powered investigation platform that helps engineering teams identify and resolve production issues faster. The acquisition advances Elastic’s goal to set the standard for production incident investigation by bringing more AI-powered investigation and automation to Elastic Observability.
Foley Represents Cognex in Agreement to Acquire RealSense
Foley represented Cognex Corporation (NASDAQ: CGNX), the global technology leader in industrial machine vision, in its definitive agreement to acquire RealSense, a pioneer in depth-sensing cameras and vision technology for robotic perception and Physical AI, for approximately $500 million.
Foley Represents TDK Ventures as Lead Investor in Series A Round for R3 Lithium
Foley represented TDK Ventures as a lead investor in the $15 million Series A round for R3 Lithium, the company operating North America’s first commercial-scale lithium carbonate recovery facility.
Foley Represents Kapital in $125M Financing
Foley represented Kapital, a global AI-powered financial institution and one of the largest B2B financial institutions in Latin America, in their $125 million debt and equity financing. The equity financing was led by Tru Arrow Partners, with participation from Cervin Ventures, Niya Partners, and Overlook Capital.
Foley Represents NEA as a Lead Investor in $875M Funding Round for Positron
Foley represented NEA as a lead investor in the $875 million funding round for Positron, the AI inference hardware company built to make serving AI models dramatically cheaper and more energy efficient.
Foley Advises Hanger Ventures on Investment in Prosthetic Fit 360
Foley represented Hanger Ventures, a subsidiary of Hanger, Inc., in its investment in Prosthetic Fit 360.
Additional Articles of Interest
What Is a General Counsel Worth?
100X 2026: Where the Energy Transition Met the AI Revolution
Author
Louis Lehot
Partner, Venture Capital
Silicon Valley | San Francisco | Los Angeles
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