A recent article by Bloomberg Law highlights the pressure faced by law firms tied to Silicon Valley as a result of sluggish markets for tech-related IPOs, M&A, and venture capital. Fenwick & West, a 478-lawyer firm, announced layoffs of “just under” 10% of attorneys and staff. Other firms in Silicon Valley have also reduced headcounts over the past 15 months, including Cooley, Goodwin Procter, Gunderson Dettmer, and Wilson Sonsini, which all focus on tech-related mergers and acquisitions, IPOs, and venture capital. The value of venture capital deals in the US fell to lows not seen since 2019, causing less work for law firms. Rising interest rates also dampened desires to provide startup funding. As a result, many newly-hired lawyers were left with nothing to do, and firms found themselves overstaffed. Fenwick chair Richard Dickson stated that the firm did not see the rebound it had hoped for. There are several reasons behind the layoffs, including interest rates affecting venture work, over-hiring in 2021, and recent associate salary raises. Firms that solely provide corporate transactional services may need to contemplate expanding offerings to other industries or combining with another firm. However, some firms may ride out the storm and stay true to their venture identity.
Under Stress: Fenwick Layoffs Expose Business Vulnerabilities
Latest from Blog
Purrfectly Profitable: Meowtel Overcomes VC Struggles to Succeed
TLDR: TechCrunch is part of the Yahoo family of brands When using TechCrunch sites and apps, Cookies are used for various purposes In a statement released by TechCrunch, it was revealed that
Fearless Fund fights for Striver’s Grant despite legal hurdles
TLDR Key Points: Fearless Fund facing legal challenges for the Striver’s Grant program Court upholds injunction citing racial discrimination concerns In a recent development, Fearless Fund, a venture capital firm supporting Black
Leading the Way: How Family Offices Are De-Risking Investments
Article Summary TLDR: Family offices have the potential to de-risk investments and drive societal change. An integrated, thesis-based approach and hands-on research can guide family offices in impactful investments. Family offices are
Qatar’s Rasmal Ventures Hits $30 Million Milestone in Debut Fund
TLDR: Rasmal Ventures, a Doha-based VC firm, has launched a $100 million debut fund focused on investing in startups in Qatar, the Middle East, North Africa, and globally. The fund has already
Venture Capital News: Avail, M^0, Sandbox Secure Millions in Funding
VC Roundup Summary TLDR: Key Points: 21 startups raised $399.7 million in VC funding in the blockchain space from June 2 to June 8. Avail secured $43 million, M^0 raised $35 million,