Our client was an early-stage technology company. We provided advice to the client as it grew, obtained financing and concluded a successful exit (liquidity event).
Originally, the foundational technology had been licensed-in from a government agency. However, over time, it became apparent that the original licensing terms were unrealistic. The harsh licensing terms were impeding the company’s ability to raise new financing.
We advised the company as it re-negotiated the license agreement – this included instructing an outside valuator who considered the value of the technology and business in light of the harsh licensing terms. When the license had been re-negotiated, we advised the business on two rounds of V.C. financing.
As the client continued to grow, we assisted the client with negotiating and drafting license agreements, services agreements and confidentiality agreements with its customers. Ultimately, a larger player in the industry sought to acquire our client. The major issue in the negotiations was identification and allocation of risks in relation to freedom to operate (whether the client’s technology would infringe third party IP rights). We assisted the client as it faced a major due diligence and negotiation around these issues and the sale of the business was successfully completed.