Corporate Venture Capital

Businesses are increasingly faced with the challenge of keeping pace with accelerating innovation to sustain and grow their businesses and adapt to changes in their markets. We advise companies looking to make strategic investments in new technologies and commercial partnerships with innovative startups to enable them to adopt and accelerate innovation and best adapt to the changing marketplace.

Entire VC Ecosystem Experience. Our lawyers are experienced in structuring and building from inception, managing and monitoring, and ultimately monetizing, corporate venture capital (CVC) portfolios. We know what's market in corporate venture capital investments and commercial transactions. We have represented corporate venture funds, strategic acquirors, venture capital funds, advisors, underwriters, early-stage and emerging growth businesses, and entrepreneurs in all stages of the company life cycle, from formation through the exit.

IP Experience. Our leading 180-member IP group holds over 200 scientific and technical degrees (including 105 in computing or electrical engineering) and provides targeted due diligence and guidance on structuring and portfolio management.

International Impact. We have substantial experience handling cross-border CVC investments, including Silicon Valley, Texas, New York, Eastern and Western Europe, Middle East and Asia. We have significant experience in representing both U.S. investors focused on global investments as well as non-U.S. investors focused on U.S. investments.

Our presence in the Silicon Valley and tech centers across the U.S., our global coverage and firmwide focus on the technology industry, and our deal work experience provide us deep exposure to deal trends and terms across industries and markets.

Comprehensive Corporate Venture Capital Services

Our Corporate Venture Capital team advises client on all aspects of corporate venture end-to-end, including:

• Developing corporate innovation programs, incubators and accelerators;
• Providing training for business and legal team on corporate venture, structuring, investment terms and trends, commercial deals and exits;
• Structuring and forming corporate venture funds;
• Structuring, negotiating and closing corporate venture investment transactions;
• Negotiating commercial agreements;
• Structuring, negotiating and closing portfolio company M&A and IPOs; and
• Providing support for corporate portfolio companies, including trainings throughout the portfolio company's life - from starting up, through developing the technology and the business, negotiating and managing venture backing, taking the company through the exit via M&A or IPO and living as a public company.

Corporate Venture Capital Services in Detail

Due Diligence. We deploy interdisciplinary teams that mix corporate, IP, tax, regulatory and other relevant experience to tackle due diligence review of the target company's business arrangements, assets and liabilities, IP portfolio, R&D process, and compliance efforts. Whenever IP assets are developed or shared, Baker Botts IP lawyers have the technical and business experience to support the transaction. Our diverse due diligence experience spans all areas of technology, engineering, energy and life sciences.

Investment. Baker Botts lawyers are well versed in structuring and executing all manner of CVC investments, whether early, mid or late stage, and understand the intricacies of anti-dilution mechanics, liquidation preferences, voting rights and registration rights. We know what is market for these investments and what CVC investment terms look like. We understand the necessary balance of protecting and maximizing our client's financial return with promoting and facilitating the target's development of its product or service offerings and commercialization of its business.

Commercial Benefit. We provide creative and comprehensive transaction design, and execution approaches, with both technology and commercial business objectives in mind. We bring to the table 30+ years of tech sector experience advising on strategic commercial alliances, joint development and joint venture arrangements, often involving complex commercial licensing, and supply, marketing and distribution arrangements for critical or innovative technology. Our solutions are business-focused - we recognize each party's desire to maximize value and minimize risk while still creating a commercial relationship that allows for growth as business needs change.

Our CVC team integrates seamlessly with the firm's nationally ranked M&A and capital markets practices, helping our clients with the full spectrum of legal needs on their CVC investments.