Nurturing the growth of tomorrow's tech superstars
Osborne Clarke Partners Justin Starling and Rob Hayes pictured above
The world’s first transistorised computer, Europe’s first nuclear reactor and Covid-19 vaccines. These are just a few of the game-changing technological innovations to have emerged from the Thames Valley.
The region is the fastest growing outside London and contributes around £10 billion a year to the UK economy, with Reading and Oxford having topped the authoritative PwC Good Growth for Cities index for the past six years.
The Thames Valley is home to some of the best-known names in tech, including Oracle, Microsoft and Cisco. These global success stories are attracted to the area by its proximity to London and ease of access to the capital by road and rail (most recently the Elizabeth Line), as well as the presence of leading universities like Reading, Oxford Brookes and, of course, Oxford.
But the Thames Valley’s tech sector comprises far more than just multi-national household names. International legal practice Osborne Clarke is the region’s largest law firm and is a leading adviser to tech firms from start-up through venture and growth financing and onwards to sale, IPO or international expansion. The firm is harnessing its 3D client strategy to provide guidance and support to technology businesses, entrepreneurs, investors and innovators.
The Osborne Clarke team has a wealth of experience in advising businesses using technological innovation such as artificial intelligence, use of data, augmented/virtual reality, blockchain, software and the metaverse. It has also worked across a number of different innovation areas including fintech, proptech, life sciences, digital health, energy innovation, ecommerce, emobility and smart cities.
3D Client Strategy
This 3D approach blends outstanding legal knowledge with sector specialisms and insights across the key transformational drivers that are shaping business today: decarbonisation, digitalisation and urban dynamics.
Venture capital and technology transactions are key to the firm’s 3D strategy and a particular focus for its Thames Valley office in Reading – the venture capital team alone comprises six partners and nine associates in Reading, London and Bristol, with further specialist venture and technology transactions teams across its international offices, for example, with colleagues in Germany, the Netherlands and the US. The firm is and has been top ranked by The Legal 500 for its work in the venture capital arena for over 10 years.
One recent example of Osborne Clarke’s work in the sector involved Reading-based CloudFactory, a ‘human in the loop’ artificial intelligence business established in 2010. An Osborne Clarke team, led by Justin Starling, advised CloudFactory on its acquisition of Berlin-based Hasty, a machine learning platform that allows companies to build and deploy vision AI applications faster and more reliably.
Another of Osborne Clarke’s clients is the German biotech company BioNTech, which has been at the forefront of vaccine development with the Pfizer-BioNTech Covid-19 vaccine being the first vaccine approved for use. Osborne Clarke advises BioNTech – which has its UK headquarters at Spencers Wood near Reading – on a range of matters, including intellectual property, technology and other commercial issues.
OC Ventures
And now a new initiative led by partners Rob Hayes and Justin Starling, and associate directors James Taylor, Elizabeth Yell and Robert Pook, called OC Ventures, has a focus to ensure that emerging tech businesses and their investors can gain easy access to the firm’s expertise, deep sector knowledge and a wealth of experience in this area of the market.
“When working with early-stage businesses with cutting edge technology, it is becoming more and more important to build strong relationships at the start of their evolution, developing trust and confidence with management and investors from the outset,” says Rob Hayes.
“Osborne Clarke has already built strong relationships from the ground up and won the confidence of investors and its clients, and that was the rationale behind OC Ventures.
“Our Reading office is perfectly situated both in terms of being at the heart of the UK’s key tech hub and located midway between the firm’s other two UK offices in London and Bristol, both of which are home to nationally and internationally important tech clusters in their own right.
“Clearly there’s a plethora of exciting businesses in the Thames Valley and we have a focus on the region in which we’re based, but it is much wider than that. A good deal of our work is centred on the Oxford-Cambridge-London ‘Golden Triangle’, as well as with other incubator clusters around the country. That said, this sector is by its nature highly mobile and highly connected, so geography is less of a factor than in some other sectors.”
Justin Starling says there are no strict criteria in terms of the size of the businesses with whom OC Ventures will work.
“We’re interested in working with the most innovative companies across life sciences and tech who can benefit from our deep specialist knowledge in those sectors. We advise many companies that have spun out of world-leading research institutions like the University of Oxford, the University of Cambridge, Imperial College and King’s College, London. These are high-quality, early-stage companies that will stay with us on their growth journey.”
And while the UK is entering more turbulent economic waters in 2023, Rob Hayes affirms that the immediate future remains bright for the Thames Valley’s young tech firms.
“We know from experience that there will always be a critical mass of investors that are prepared to make funds available for innovative world-leading technology through tough times.”
CASE STUDY
ADVISING NEXEON FROM DAY ONE
Leading battery materials developer and manufacturer Nexeon was advised by lawyers at Osborne Clarke throughout two successful multi-million-pound fundraising rounds last year.
Nexeon, which is based at Milton Park near Abingdon, produces silicon anode materials, a crucial component in lithium-ion electric vehicle batteries, which boost vehicle range and charging speed and lower charging costs. The company also has a base in Yokohama, Japan and has recently opened an office in the South Korean capital, Seoul.
The first $80 million investment saw Nexeon enter into a strategic partnership with SKC, a global battery and semiconductor materials company based in South Korea. It involved a consortium which also included SJL Partners LLC, BNW Investment Co. Ltd. and Kiwoom Private Equity Inc. Ltd.
The second close of Nexeon’s fundraising made a total investment of $170 million and a further $50 million of commercial investments made in its technologies. The investors included US-based Ingevity Corporation, GLY Mobility Fund and Korean private equity investors Daishin Private Equity and Shinhan Investments.
Rob Hayes led the Osborne Clarke team involved in the fundraisings, working with corporate colleagues including partner Robert Wood and associate director Elizabeth Yell, with the firm also providing advice on intellectual property and anti-trust matters.
He said: “Investment in lithium-ion battery development and manufacturing is critical in the global drive to reduce carbon emissions, especially given their dominant use in electric vehicles. Having incorporated the business in 2006, Nexeon is a longstanding client and we look forward to watching its progress over the next phase of its development.”
Dr. Scott Brown, CEO of Nexeon, added: “Rob’s team has supported the company along every step of its journey to date.
“To have a legal team that understands our business and has built trust and confidence with the management team and our investors has undoubtedly been an important factor for us over the past 15 years.”
