Welcome to our latest edition of View from the Bridge.

2019 is in full swing and it has been a busy start to the year. Despite continuing political uncertainties, with the combination of skills and cutting edge technology, with scalability and an accessible regulatory regime, the UK continues to be a drawcard for businesses looking to expand internationally. We are pleased to announce that our client, Stitch Fix, has officially made its debut in the UK’s fashion e-commerce market. Stitch Fix is a NASDAQ-listed business, which caters to three million active clients in the US through an online service that combines personal stylists and algorithms to provide curated wardrobes for its clients. The UK is Stitch Fix’s first international market and we wish them huge success. Congratulations, Stitch Fix!

We are also excited to announce the launch of our second report on inward investment into UK tech, Golden Triangle: Golden Opportunities? The report explores the inward investment trends from the US, Europe and China. Last year we reported that Silicon Valley investment into UK tech was at an all-time high. We are pleased to see that US investors continue to be the biggest foreign backers of UK companies in sectors including biotech, fintech and AI.

Continuing on from the discussions of 2018, the shifting landscape for gender diversity and inclusion in the workplace in the US remains at the forefront of minds. It is apparent that board diversity, especially with respect to women and minorities serving as directors, is gathering an increasing amount of momentum in the US corporate governance arena, particularly in the technology and communications sectors. Below you can review an article discussing how this issue is significantly influencing US investor and lawmaker behaviors and why it is useful for companies to consider the steps the UK and elsewhere have taken in this area.

Finally, we would be remiss not to mention the extended Brexit deadline that the UK government has negotiated. As it stands, the UK is due to leave the EU on 31 October 2019. Consequently, businesses are increasingly seeking to review their commercial contracts and, in particular, with respect to a no deal scenario - seek to include bespoke provisions to deal specifically with Brexit. Our expert commercial lawyers have prepared a note to help businesses navigate through this issue and provide some practical actions that can be taken now.

According to new research conducted by Penningtons Manches and released in our report Golden Triangle: Golden Opportunities?, the number of deals involving US funds rose from 161 in 2017 to 166 in 2018, making the US the largest overseas investor in UK technology companies. West Coast funds were involved in 60% of all US-backed deals into the UK’s ambitious companies, a reassuring sign of the maintained interest in the UK’s high growth scene. You can read more about inward investment from the US and other jurisdictions by viewing our report.

Gender diversity and inclusion matters not only socially and morally but also economically. This game-changing economic opportunity is materially influencing US investor and lawmakers’ behaviors. Large US institutional investors such as BlackRock are advocating for greater gender diversity on public company boards and are ramping up these efforts. Employment law partner, Chris Syder, discusses how to ensure that your actions speak louder than your words on this important topic.

There are contractual means by which businesses may seek to deal with any future Brexit uncertainties. Contracting parties often try to “expect the unexpected” and many agreements include express termination rights to deal with unexpected adverse events. Our expert commercial lawyers explore the options companies can take in order to protect their position in respect of Brexit, by including specific clauses in commercial contracts.