News | 30 May 2023

Silicon Valley and Sydney: Tech opportunities abound

Freshly returned from Silicon Valley, Sydney-based corporate partner David Holland shares the opportunities for U.S. tech investment in Australia.

David Holland, an M&A partner in our Sydney office, recently spent a week in our San Francisco and Silicon Valley offices as part of our HL Partner Ambassador Program, an innovative new program in which partners are hosted by an office in another region with a view to further enhancing collaboration and connections between the two offices. David returned with some new perspectives on the similarities and opportunities for tech clients.

“Over the past few years I’ve worked on several tech deals with my colleagues in our San Francisco and Silicon Valley offices, but having the opportunity to spend an extended period of time in their offices gave me a new perspective on the wealth of opportunities U.S. tech is seeing in Australia.”

Venture capital investment on the rise

“Our clients are particularly focused on venture capital investment work in Australia, and speaking to big tech in the U.S. it was apparent that this trend is only going to grow. Australia is an attractive place to do tech investments (either by U.S. venture capital funds or the venture capital arms of big tech) and Hogan Lovells is particularly well positioned to be able to advise clients on these ambitions,” he added. “We are also seeing Australian tech clients make commercial inroads into the U.S., which increases the rationale for U.S. investment into these businesses.”

M&A market challenges universal

As for M&A market conditions, sharing experiences and insights highlighted the commonality in challenges for the M&A market across the board. “Some of the headwinds we’re seeing in the M&A market in Australia are also the same as those being faced in the tech hub of Silicon Valley. There’s a greater focus on acquisitions being positive to earnings from day one, and there are sensitivities that companies are navigating such as the dichotomy of layoffs on the one hand, and adding headcount through acquisitions on the other,” explained David.

Growth opportunities abound

“My lasting impression was there are opportunities abound for tech clients to explore Australia as an investment destination, and with Hogan Lovells’ presence in both markets we have the matching outlook to partner with clients on their growth ambitions.”

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