USA Law and Practice Contributed by: D. Scott Bennett, Nicholas A. Dorsey, Virginia M. Anderson and Ellen H. Park, Cravath, Swaine & Moore LLP
Other Potential Restrictions Depending on the industry in which a foreign venture capital investor is investing, in addition to CFIUS there may also be industry-specific regulatory reviews or requirements arising at the US federal or state levels. Examples of targets that may implicate such reviews or requirements include entities operating in the telecommunica - tions and financial services sectors, as well as companies that provide defence-related prod - ucts or services, among others.
nesses that deal with critical technologies, critical infrastructure or sensitive personal data ( “TID US Businesses” ) and • certain transactions involving real estate in the USA located within a specified distance of certain airports, maritime ports or sensitive US government facilities. Certain transactions involving a TID US Busi - ness must be notified to CFIUS at least 30 days prior to the completion date of the transaction. Transactions may also be submitted to CFIUS voluntarily in order to obtain a CFIUS “safe har- bour” , which provides greater certainty that the US government will not impose mitigation meas - ures or force the foreign investor to divest its interest in the US business in the future. There is no revenue or turnover threshold for CFIUS review. CFIUS may review any transac - tion within its jurisdiction, regardless of the value of the transaction. As a result, CFIUS can – and regularly does – review venture capital transac - tions and other transactions involving early stage companies.
640 CHAMBERS.COM
Powered by FlippingBook