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The new Foreign Investment Risk Review Modernization Act has bought minority investments into the scope of CFIUS reviews.

• JumpCrisscross 8y ago
  > Foreign Investment Risk Review Modernization Act has bought minority investments into the scope of CFIUS reviews Not all minority investments. Simply ones “in a critical technology company that gives the foreign entity: - access to any material non-public technical information of the company; - membership or observer rights on the company’s board or equivalent governing body; or - any involvement in substantive decision-making of the company, other than through voting of shares” [1]. [1] https://techcrunch.com/2018/08/17/a-new-foreign-investment-bill-will-impact-venture-capital-and-the-u-s-startup-ecosystem/ https://techcrunch.com/2018/08/17/a-new-foreign-investment-b...
  • ThomPete 8y ago
    "- access to any material non-public technical information of the company;" wouldn't that cover more or less any relevant investment in a startup?
    • JumpCrisscross 8y ago
      No. Many private companies routinely disclose much less to investors [1]. Technical information rights go beyond standard and statutory investor information rights, and are typically reserved for strategic investors, knowledgeable lead investors and board members. [1] https://www.reuters.com/article/us-palantir-technologies-lawsuit-idUSKCN1G62NK https://www.reuters.com/article/us-palantir-technologies-law...
      • ThomPete 8y ago
        I am not so sure that's correct in reality. Maybe technically but not in reality especially not for small startups.