Business & Legal Developments | July 2026

Louis Lehot

9 min readJul 7, 2026

Friends,

In last month’s newsletter, we looked at how long hold periods and scarce exits are pushing sponsors to put artificial intelligence (AI) at the center of value creation. What a difference a month makes: the initial public offering (IPO) window is open.

SpaceX went public on June 12, raising $75 billion in the largest IPO in history and closing its first day up 19%. Some 194 companies have gone public so far this year, more than half of 2025’s full-year total, and Anthropic and OpenAI have both filed confidentially. The first-half lesson: readiness beat timing. The companies that listed were the ones with clean financials, clean cap tables, and manageable regulatory exposure. The fall window, historically the busiest, belongs to companies that started preparing last year. If that is not you, start now and aim for 2027, and keep the dual track alive, because a hot IPO market lifts merger and acquisition (M&A) prices too.

Washington wants to keep the window open, and your chance to weigh in closes this month. The Securities and Exchange Commission’s (SEC) May proposals would extend scaled disclosure to roughly 81% of public companies, give new issuers a five-year on-ramp, raise the top compliance tier from $700 million to $2 billion in public float, expand shelf access, and permit semiannual reporting. Comments on modernizing the IPO process are due July 27. If the details affect your exit plans or reporting burden, this is the month to be heard, directly or through your industry groups.

Meanwhile, AI is squeezing the middle out of deal diligence. Machines can now flag issues across thousands of contracts in hours, but they cannot decide which findings threaten the deal or what to trade away at the table. Buyers and sellers should expect diligence to go deeper, not just faster, and press advisors to spend the savings on judgment. Sellers should assume every document in the data room will actually get read, and clean up contracts, cap tables, and intellectual property (IP) assignments before launching a process, not after the findings show up as a price chip.

As always, do not hesitate to reach out if we can help you get IPO-ready, weigh in on the SEC proposals, brainstorm a legal or business challenge, or connect you to a potential investor, professional, or entrepreneur.

Spotlight on San Francisco World Cup Watch Party

San Francisco World Cup Watch Party | June 11, 2026
Foley partnered with Origin Ventures, Pilot, and Customers Bank to host a multi-city World Cup watch experience that brought founders, investors, and operators together to watch the opening 2026 match between Mexico and South Africa. Held simultaneously across several cities, the gatherings created a shared, real-time connection among local startup communities, blending the energy of the live match with a relaxed setting for conversation, food, and drinks. By aligning multiple ecosystems around a single global moment, the program fostered cross-market engagement and provided a unique backdrop for meaningful relationship-building across the venture landscape.

The evening served as a dynamic kickoff to the 2026 World Cup, with attendees gathering coast-to-coast to participate in a synchronized viewing experience that extended beyond the game itself. The format encouraged organic interaction among founders, investors, and operators, creating space for both new connections and continued dialogue within and across regional tech hubs. The shared experience underscored the strength of these interconnected communities and the value of convening around moments that resonate globally.

Events

Upcoming:

YC Founders Wine & Cocktails Mixer | July 8, 2026
Foley is excited to support a Y Combinator (YC) founders-only networking reception that will bring together current batch participants, YC alumni, and select members of the broader YC community for an evening of relationship-building and peer engagement in San Francisco. Designed as a relaxed follow-up to YC Founders on the Bay, the gathering will feature wine tasting, cocktails, light bites, and founder-to-founder conversation in an informal setting focused on meaningful connections rather than formal programming. The event will create an opportunity for members of the YC ecosystem to strengthen existing relationships, exchange perspectives, and expand their networks within a highly curated community of entrepreneurs and supporters.

AI as a Force Multiplier: Scaling Lean Finance Teams Without Adding Headcount | July 22, 2026
Foley is excited to participate in a panel discussion for venture-backed chief financial officers (CFOs) and finance leaders examining how AI is reshaping the finance function and redefining operational expectations for high-growth companies. Bringing together experienced finance executives actively implementing AI within their organizations, the conversation will explore practical applications across financial close, forecasting, reporting, compliance, and cash management, while addressing the organizational, governance, and data integrity considerations that accompany broader adoption.

Investors Summer Drinks | July 27, 2026
Foley, alongside Open Future Forum, is proud to host a private summer networking reception that will bring together venture capital investors, corporate venture capital leaders, and other participants across the strategic capital ecosystem for an evening of relationship-building and market-focused discussion. With no formal presentations, startup pitches, or vendor programming, the event will emphasize thoughtful introductions, candid conversation, and meaningful connections among senior investors, founders, and operators shaping the future of innovation and growth.

Recent:

CFO Executive Forum: Giants Game in the SVB Suite | June 26, 2026
Foley joined Silicon Valley Bank, Protiviti, and Open Future Forum in hosting an evening at Oracle Park that brought together CFOs and other senior finance leaders for a relaxed networking experience centered around a San Francisco Giants home game. Held in the Silicon Valley Bank suite, the gathering provided attendees with the opportunity to connect with peers in an informal setting while enjoying food, drinks, and the game from a private box. Designed without panels, presentations, or formal programming, the event encouraged candid conversation, relationship-building, and the exchange of insights among finance executives navigating similar challenges and opportunities.

Quantum.Tech World 2026 | June 25, 2026
Foley participated in Quantum.Tech World 2026, an industry convening that brought together senior decision-makers, technical leaders, and innovators across quantum, AI, and high-performance computing, creating a focused environment for engagement around real-world applications and emerging opportunities. As a featured sponsor of the Start-Up Zone, Foley supported a curated platform for early-stage companies, where live pitches, rapid-fire demonstrations, and applied technologies highlighted the transition of quantum innovation into commercial use. The program also included contributions from Foley attorneys through a practitioner-led roundtable, “Building a Quantum Company: What Founders Need to Know About IP, Investment, and Risk,” which examined key considerations for founders, including intellectual property strategy, investor expectations, and navigating regulatory and market dynamics as companies scale.

YC Founders on the Bay | June 19, 2026
Foley, in collaboration with You.com and Silicon Valley Bank, hosted an intimate, two-hour evening on the Bay tailored for YC founders, convening current batch participants, alumni ranging from pre-seed to Series C, and members of the broader YC network for a relaxed, relationship-focused gathering. Designed without a formal program or pitching component, the event emphasized organic conversation and peer-to-peer connection, with drinks and light fare supporting a casual, free-flowing environment throughout the evening.

Unlocking Liquidity: Secondary Markets & Alternative Exit Strategies | June 9, 2026
Foley convened a small reception and panel that brought together founders and investors for a targeted discussion on the increasing significance of secondary markets in the private capital ecosystem. The session centered on a candid exchange among industry practitioners, addressing deal structuring approaches, shifts in valuation and pricing dynamics, and evolving liquidity options available to founders and employees. The conversation also incorporated investor viewpoints on portfolio management as well as the regulatory developments influencing continued market maturation.

Thought Leadership

America at 250: Why the Next Wave of Innovation Will Be Built Across Borders
As the United States moves beyond its 250th anniversary, its enduring competitive advantage is increasingly defined by its role as a global hub for cross-border innovation, particularly along the rapidly strengthening U.S.-Latin America corridor. What was once framed as an emerging market story has evolved into a two-way exchange, with Latin America producing sophisticated founders, scalable technologies, and sector-specific solutions across fintech, AI, and climate infrastructure, while U.S. investors pursue growth, talent, and access to underserved markets beyond traditional venture centers. As capital and innovation become more distributed, cross-border transactions are growing more complex, requiring sharper focus on regulatory strategy, governance, and integration. In that environment, the defining advantage shifts to those who can operate seamlessly across markets, reinforcing a broader truth: America’s innovation leadership has never been built in isolation, but on its ability to convene global capital, talent, and ideas, and the next chapter will be no different.

Learn More

Guilbeau v. Footprint Int’l Holdco, Inc.: Lessons From a Chancery Court Cramdown Financing Decision and Insights Into DGCL Section 144’s Safe-Harbor Provisions
The Delaware Court of Chancery’s decision in Guilbeau v. Footprint International Holdco, Inc. underscores how scrutiny of dilutive financings continues to center less on labels and more on structure, process, and coercion, even as new statutory safe harbors emerge. While the court declined to treat a 26% holder as a controller, it allowed fiduciary claims against directors to proceed, emphasizing that conflicted boards and weak procedural safeguards, such as an advisory-only committee and the rejection of higher-value alternatives, can still trigger entire fairness review. The opinion also reinforces growing skepticism of “pay-to-play” financings framed as optional but effectively coercive, particularly where participation is constrained and non-participants face severe dilution. Viewed alongside the 2025 amendments to Section 144, the decision signals a potential shift toward clearer, more structured pathways for insulating transactions, while highlighting that governance design, independence, and real negotiating authority remain decisive in determining whether courts view a process as genuinely fair or fundamentally flawed.

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Deals

Foley Represents Riverwood Capital as Lead Investor in $180M Growth Investment in LeapXpert
Foley represented Riverwood Capital as the lead investor in the $180 million growth investment in LeapXpert, a leader in governed communication intelligence.

Foley Represents OpenLight in Partnership with Advantest Corporation
Foley represented OpenLight, a leader in heterogeneous silicon photonics integration and custom Photonic Application-Specific Integrated Circuit (PASIC) design, in their partnership with Advantest Corporation to develop solutions for scalable, high-volume silicon photonics testing.

Foley Advises Elektrik in Major Growth Investment from Lead Edge Capital
Foley served as legal advisor to Elektrik App, Inc., the leading procurement platform for sourcing critical electrical infrastructure components, in its significant growth investment from Lead Edge Capital, a growth equity firm.

Foley Guides Ultradent in Acquisition by Mitsui Chemicals
Foley served as legal advisor to Ultradent Products Inc., a leading global developer and manufacturer of high-tech dental materials, devices, and instruments, in its agreement to be acquired by Mitsui Chemicals.

Foley Represents Skōp in Acquisition by Peloton
Foley represented Skōp in its strategic acquisition by Peloton. Skōp, an early innovator in connected Pilates, brings foundational technologies and specialized expertise that will help Peloton build on its at-home Pilates offerings and further its multi-year innovation agenda to become a global leader in connected fitness and wellness.

Foley Advises Lender Group in Approximately $382M Debt Financing for Sabanci Renewables’ Two Texas Solar Projects
Foley served as lenders’ legal counsel in connection with the $382 million debt financing for Sabanci Renewables’ two solar energy projects in Texas. The debt financing was provided by MUFG, NORD/LB, BBVA, and Intesa Sanpaolo.

Foley Secures Dismissal of Securities Fraud Class Action Against Innovative Industrial Properties
Foley secured dismissal of a putative federal securities class action against leading real estate investment trust Innovative Industrial Properties, Inc. (NYSE: IIPR) and several of its executives.