Commercial Flashcards
Tell us about a news story (APP).
I - Given my interest in capital markets, proposals for a restructured U.K. capital markets regime has caught my attention recently.
C - U.K. has struggled to attract companies and witnessed several take private deals. As such, FCA published its primary markets effectiveness review with a view to reform U.K. capital markets regime. However, it may inadvertently discourage smaller companies and doesn’t address issue of cultural differences.
A - FCA main proposal: single listing category. Also advocates more flexible approach to listings by removing financial requirements eg clean working capital statement and three year historical financial requirement.
However, some rules applicable currently to premium segment will carry over incl. sponsor regime and significant transactions.
C - Accordingly, this will deter smaller companies as the burden to list is ultimately higher.
Tell us about a news story (NON-APP).
I - Given my interest in tech, venture capital and capital markets, Reddit’s recent IPO has caught my interest for its potential to trigger more down round tech listings.
C - Reddit first tech IPO since instacart, listed with valuation of $6bn - well below $10bn it was worth in 2021. This is considered down round. For three reasons, I think this is the start of a slew of down round IPOs.
A - 2020-21 saw investors competing for overpriced companies due to low interest rates but because of this signed away key protections, including those that allowed them to veto an IPO below a certain price.
VCs need to return money to investors given poor macro climate.
That said, macro climate is still poor which may deter activity.
But I disagree, major central banks have signalled an end to interest rate hikes with both the MPC and FED holding interest rates steady and new investments in AI have begun emerging. Furthermore, Reddit’s shares rose by more than 50% after it listed. All this indicates growing appetite for stock listings and activity in the tech sector.
C & Law firms
Reddit’s IPO signals a shift
Law firms - like Fieldfisher - will see greater activity in capital markets and corporate work, especially around due diligence and deal structuring
How does Fieldfisher remain competitive?
- Technology sector expertise
- Ranked highly across multiple practice areas within this sector and represents one of the largest technology teams in the legal sector.
- Had reorganised its tech offering in late 2022 into a new Technology & Data practice which has been organised into 10 key practice areas
- As such, Fieldfisher is always devising new ways to deliver the best client service but this reorganisation also allows the a more focused approach so that the firm’s broad talent can is specialised in a select number of areas.
- Global
- Fieldfisher is truly global with over 25 offices in key jurisdictions, incl. London, Brussels, Shanghai and Silicon Valley.
- Such an integrated global network provides value to clients as it allows for the quick and cost-effective delivery of legal service.
- Innovative / Forward thinking
- Fieldfisher’s Chief Strategy Officer, Katherine McPherson, coined the tagline ‘The Future is Human’ which captures Fieldfisher’s way of doing business: with creativity and innovation
- Indeed, Fieldfisher prides itself on its innovative Client Solutions which can provide clients with advantages through automation tools and people resourcing
These include Contract Express - a document automation software (speeds up production of routine documents)
Condor - an alternative legal solutions platform (combines FF’s expertise with the negotiation, data management and tech capabilities of a third party)
- Accordingly, FF’s clients can constantly access cost-effective and timely legal solutions through FF’s commitment to innovation.
How is the technology sector changing?
- Emerging technology
- There has been increased investments in new technologies as of late, including the blockchain and AI
- Indeed, start-ups like Mistral AI and OpenAI have become very prominent attracting large investments from the likes of Salesforce and Microsoft
- Moreover, we have seen the share prices of companies leveraging these new technologies to improve existing offerings increase substantially, such as Nvidia whose shares soared by over 200% in 2023 and 80% in 2024.
- This presents an opportunity for companies to diversify their offerings or integrate such technology to improve their service delivery. It could also see more entrants disrupting the market.
- Sustainable technology
- With ESG considerations attracting a great deal of focus, technology is also attracting the same kind with investors and consumers paying more attention to how components of hardware are originated and the energy used to power things like cryptocurrency.
- As such, we are likely to see a continued push toward making supply chains more transparent, as consumers demand that products and services they invest in and use are backed by more sustainable practices.
- Litigation perhaps?
- Greater regulation
- Given the rapid advancement of technological development, regulators and law makers across the globe are increasingly try to catch up to ensure the use of technology is safe andas risk-free as possible
- For instance, the EU recently passed the AI Act which will ban some AI uses that pose a risk to people’s fundamental rights.
- The EU has also used the Digital Markets Act to investigate Meta, Alphabet and Apple for potential violations of the Act
-Accordingly, more companies in the tech sector will be seeking regulatory guidance.
What challenges are affecting the legal sector?
- Adoption of legal technology
- War for talent
- ESG considerations
Tell us about a deal you found interesting.
Fieldfisher advised deep tech VC fund Playground Global on a £13m Series A funding round for Phasecraft - a quantum software company.
Playground Global is an VC firm that invests in tech based on cutting edge engineering or scientific advances and also assists start-ups with software, hardware, machine learning and marketing.
The deal stood out to me for to me for reasons:
- Reflects FF’s strengths in the tech sector and also its growing presence in Silicon Valley
- Underscores the global nature of the majority of FF’s work
Tell us about a commercial issue that you realised when researching our firm / tell us about a commercial issue that impacts our firm.
