Originally appeared in Kaye Scholer's Term Sheets and Tech Deals: Key Considerations Report
Foreword
Any sufficiently advanced technology is indistinguishable from magic: Ecommerce and other information age applications enabling institutions and individuals to transact their earthbound business in virtual space certainly fit futurist Arthur C. Clarke's adage. Yet, pull the digital superhighway's seamless curtain of instantaneous anytime, anywhere access aside and what's revealed is a thicket of intersecting systems driven by their own, very real, practical and legal concerns.
The realities of relying on this patchwork of technologies—and being increasingly dependent on third-party online or mobile websites, cloud-based applications and/or social media networks to promote business enterprises, operate key functionality and conduct core business transactions—place tremendous responsibilities on those who must pull off the trick of making the "magic" work, seemingly effortlessly, by successfully obtaining and safely providing these foundational technological services and systems.
This report, Term Sheets and Tech Deals: Key Considerations, focuses on some of the key aspects businesses regularly have to address with their investors, customers, suppliers, partners and regulators. Prepared by members of Kaye Scholer's respected Technology & Digital Transactions group, it addresses ways to stay current with issues surrounding new technologies, which continue to arrive more quickly and bring with them growing lists of concerns as well as business issues with potential long-term impact that fintech startups should consider when taking on investors.
Specifically, the three articles in this report concisely address term sheet negotiations between fintech startups and financial services companies, the promise and problems of hyperlinked contract terms, and managing third-party contract obligations.
Novel technologies, mobile delivery, big data and innovative payment systems, in conjunction with increased intellectual property and individual privacy rights and data security concerns, as well as shifting jurisdictional considerations, continue to reshape the market for both established and emerging companies across all industries. Operating with the quickness connected commerce demands, Kaye Scholer's Technology & Digital Transactions lawyers advise clients in dealmaking across virtually all operational, revenue-generating and strategic areas of their businesses.
Our keen commercial instinct for rapidly identifying and prioritizing key business and legal risks helps clients efficiently manage the regulatory, privacy, technology and financial infrastructure issues inherent in the increasingly intricate and interconnected "anytime, anywhere" e-economy. As all companies increasingly use technology as a core part of their business, they turn to us to advise them on the full spectrum of issues, including new product development, from ideation phase through product launch to ongoing legal compliance and product maintenance; acquiring, licensing or building technology, data and payment systems; creating strategic alliances with other companies to help scale and increase the technology footprint; building ecommerce products and services; and advising on strategies to manage the heavy demands of corporate governance, contracting and compliance.
We hope that this report provides insight into the ever-evolving and increasingly important role that contracting and other legal considerations play in successful ecommerce interactions. As always, we welcome the opportunity to continue our discussion of these issues in greater depth.
Originally appeared in Kaye Scholer's Term Sheets and Tech Deals: Key Considerations Report
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
