MintzTech Connect: All Things Technology — May 2023

By Daniel I. DeWolf, Samuel Asher Effron

Spring is in the air, but it is a challenging time to understand which way the wind is blowing in the emerging companies space. On the one hand, we saw a pause in investment activity at the end of 2022 and the first few months of 2023. On the other hand, we have seen a noticeable uptick in investment activity in the last six weeks. Again, on the one hand (a different set of hands), we recently saw a significant market correction in terms of valuations. But on the other hand, we have not seen a lot of the more punitive investment terms, such as multiple participating preferences or pay-to-play provisions that we witnessed in the great recession in 2009 and the post-bubble period in 2001.

So what should we make of all this? Despite the fact that there have been layoffs in many tech companies, unemployment remains at historically low levels. Interest rates have increased, but business activity remains robust. What we see is that while there has been a valuation correction in the private company sectors, good companies with solid business plans are still getting funded. Further, new and interesting companies continue to be created at a strong pace. Perhaps we are in a period of “rational investment” as compared to “irrational exuberance.” Time will tell, but it feels like it may be a good time to invest, as valuations have corrected yet business activity remains strong.

We lead this issue with an interview of Dan DeWolf that was recently broadcast on FINTECH.TV. We follow this with an interesting piece on generative AI (which is at the top of all of our minds). Our company spotlight is on a data-focused company called Coefficient.

Be sure to visit our website for emerging companies @ mintzedge.com, and please sign up here to receive email alerts when new articles are posted to MintzEdge. We thank you for your continuing support.

Be safe and be well,  
Dan + Sam

CONTENTS

// Outlook for the Global Venture Capital Market & the Need for Bipartisan Regulations featuring Dan DeWolf

// Benefits and Legal Risks of Embracing Generative AI Applications by Lorena Niebla and Jeremy Glaser

// Industry News: Spotlight on Coefficient

// MintzTech Connect Team

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    MintzTech Connect: All Things Technology — February 2023

    February 21, 2023| Article

    Authors

    Daniel I. DeWolf

    Daniel I. DeWolf

    Member / Chair, Technology Practice; Co-chair, Venture Capital & Emerging Companies Practice

    Daniel I. DeWolf is a leading authority on growth companies and venture capital law — and has worked on pioneering online capital-raising methods. He is immersed in the national and international ecosystem of emerging companies and investors focused on start-ups. He has also been a member of NYU Law School’s faculty since 2003, where he teaches venture capital law.
    Samuel Asher Effron

    Samuel Asher Effron

    Member / Co-chair, Venture Capital & Emerging Companies Practice

    Samuel Asher Effron assists Mintz clients with venture capital and private equity transactions, helping start-ups with legal and business matters. He has clients in a variety of technology sectors, including video gaming, music, virtual and augmented reality, and consumer electronics.