Wilson Sonsini is a Silicon Valley-based law firm that has always been involved in supporting technology companies in their various stages of growth: venture capital relations, IPOs, mergers and acquisitions, internationalisation.
The firm has played a leading role in the evolution of the tech industry over the years and today it is experiencing new challenges and opportunities both because since 2018 it has also been active in Europe with a continental office in London, and because, inevitably, the geopolitical scenario that has unfolded in recent months has brought into play many choices and many medium- and long-term strategic plans.
Startupbusiness caught up with partners Michael C. Labriola, Lou Lieto and associate Diviya Padman (pictured) on the sidelines of a meeting organised by the firm Portolano Cavallo.
“Our firm has always focused on tech companies,” began Lieto, “both in the digital sphere and in biotech and lifescience. In its history Wilson Sonsini has worked with companies such as Apple and Google, and has handled the IPOs and extraordinary transactions of companies such as Netflix, Twitter and Linkedin. What we are interested in are companies that innovate, we usually start working with those in the growth stage and follow them throughout the growth process’.
“Our European office, which has been active since 2018,” says Labriola, who divides his time between London and Washington DC, “also takes a Silicon Valley-style approach and helps European companies to efficiently approach the US market, our role is to accelerate business processes so that opportunities can be seized to the fullest.
There are several European companies that Wilson Sonsini works with, among those mentioned by the partners Multiverse, Monzo, Checkout, Satispay, King, Onfido acquired by Entrust, Emarsys acquired by SAP: ‘we have more than a thousand customers among European companies, most of them rely on us to accelerate the expansion process in the US also in terms of interaction with investors. It is important to emphasise that we support companies in the process of internationalisation, it is indeed important to us that European companies remain European because we see it as part of our mission to ensure that all ecosystems can grow.
This vision, which Labriola shares with Startupbusiness and which represents the legal firm’s approach in terms of its ability and desire to provide support to tech companies and their ecosystems, just as it has been from the outset and continues to be from the law firm’s headquarters at an address very close to Stanford University, takes on a whole new meaning and, if possible, even more importance at this historic moment in time where geopolitical balances are in a phase of profound change and inevitably also have an effect on companies.
“I believe that the situation for start-ups and tech companies is changing as a result of the new geopolitical balances, and I believe that Europe today has a great opportunity to take advantage of this situation, I believe that what is happening is that the current administration in the White House is aiming to radically change the role that government has in the United States. Initiatives such as taking away or reducing funding for universities and research, for example, not only has immediate effects that are certainly not positive, but also creates long-term risks in relation to the emergence of new tech companies, and this is a front where Europe can relaunch and strengthen itself, also thanks to the fact that the concept of ‘made in Europe’ is increasingly emerging and attracting more and more attention, certainly from European consumers and companies, but not only. This change, however, does not detract from the fact that in the USA there is historically a greater propensity for risk, which remains a decisive element, while in Europe there is generally a more conservative attitude. However, in the short term, if the USA does not understand the importance of continuing to develop talent and ideas, things could get complicated and there could even be a brain drain in directions we had never imagined before. There is no doubt that this is a time of great uncertainty, but I am also convinced that the scenario can change abruptly from one quarter to the next. The US market always moves very quickly, the ground rules are different from Europe, for example the greater ease of hiring and firing people, or the aforementioned propensity for risk on the part of investors. Having said that, it is a fact that Europe today has a great opportunity to grow and consolidate its role, I do not believe at all in a possible demise of American tech, but the balance is shifting’.
This is an opportunity for growth that Europe can seize especially in some sectors more than in others. While it is true that in the fields of digital, artificial intelligence, and the cloud, less dependence on companies from other countries would be desirable, as it would also be for energy for example, it is also true that Europe can leverage excellence in areas such as biotechnology and energy-related research: “biotechnology is very strong in Europe, we have seen this with the covid emergency where precisely European companies, both already large and start-ups such as Biontech, which collaborated with Pfizer on the development of the vaccine, have demonstrated their capacity and effectiveness”. Another European start-up that was very active during the covid was CureVac and today this strength of European biotech is confirmed, for example it should be mentioned that the most capitalised European company is the Danish Novo Nordisk, just as energy research is strong with excellences such as Proxima Fusion which is one of the global spearheads of nuclear fusion research.
“In general, it is the deeptech research and innovation realities that represent the strong point in Europe, I am also thinking of quantum computing, next-generation batteries, spacetech, and we are increasingly seeing the involvement not only of institutions and the world of finance but also of large companies. The role of governments is fundamental in supporting research and innovation, Silicon Valley itself was originally created with public funds, but we also need to create the perfect chemistry with investors, entrepreneurs, and research. I think the moment is very interesting, we’ll see what happens in the coming months, but it must be said that in the US many activities are governed at the local level and therefore we need to understand how they will then be effectively impacted by federal decisions, and that the system retains its pro-business attitude, even tariffs, for example, are not yet a problem for the tech industries as they tend to affect more traditional sectors, but, in general, historically tariffs have never worked, if the Trump administration were to make them effective, hats off, but I don’t think that will be the case.
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