At $15 billion, venture capital and private equity investment flow from the United States into Germany in Q1 2017 is already triple the levels of the prior two years. As the U.S. and German tech ecosystems become more closely connected, raising capital in the U.S. market is becoming a strategic consideration for many fast-growing German tech companies. For some, establishing a presence in one of the U.S. tech centers will be a key inflection point.
To help German founders understand and navigate the U.S. market, Orrick is excited to launch Go West: Venture Financings and Expansion Projects in the United States. This guide provides practical tips and legal considerations based on years of experience counseling high-growth companies in the U.S., Germany and worldwide. It covers when and how to look for U.S. investors and key differences between funding rounds in Germany and the United States. It delves into the pros and cons of "flipping" a German GmbH into a U.S. company, often a cornerstone in developing a successful "Silicon Valley story." For companies seeking to enter the U.S. market to tap into its rich talent and technology pools, the guide covers operational considerations including protecting intellectual property rights, privacy considerations when transferring personal data, and employment and compensation strategies, including adapting German participation programs for U.S. talent. The guide also discusses unique U.S. market risks, including trade secrets and litigation.
In preparing the guide, the Orrick team drew on experience representing more than 1600 tech companies globally, as well as the world's leading venture and private equity investors. Founded in the Bay Area, Orrick is one of the world's leading tech companies law firms, and ranks #1 for European venture capital transactions (Pitchbook).
We hope the guide is a useful resource and welcome your questions and feedback.
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.