Fasken Martineau DuMoulin LLP, one of Canada’s largest law firms, is making a move to attract more business from startups by recruiting a top technology lawyer from competitor Blake, Cassels & Graydon LLP. The firm has hired Marc Shewchun, who has extensive experience as both a lawyer and an executive in the tech industry. Shewchun previously launched a program called Nitro at Blakes, which offered cost-effective legal advice tailored to the needs of startups.
Fasken’s strategy aligns with the growing trend among large law firms to build connections with early-stage companies. By providing valuable legal services to startups, these firms can cultivate strong relationships, as entrepreneurs are often loyal to the advisors who helped them in their early stages. The partnership with Shewchun will strengthen Fasken’s position in the tech sector and contribute to its ongoing expansion of the emerging technologies group, which already consists of 85 professionals.
With the acquisition of Shewchun, Fasken aims to customize its services for startups by being transparent about fees, distributing work between partners and associates to optimize costs, and prioritizing essential services such as patent registrations. By focusing on a select number of key patents rather than numerous projects, Fasken aims to provide startups with cost-effective solutions that protect their ideas and help them grow into successful companies.
The tech industry in Canada is currently facing challenges, including a lackluster market for initial public offerings (IPOs), which are crucial sources of funding for scaling operations. However, the bulk of tech-sector activity predominantly occurs at smaller companies, with the majority of transactions valued under $20 million. Despite the slow IPO market, investment in the domestic tech sector remains strong. In 2022, institutions and individual investors committed $10 billion to tech companies in 706 deals, making it the second-highest year for tech transactions after 2021.
Fasken’s recruitment of Shewchun comes at a time when debt financings for startups are also on the rise. In 2022, a record $664 million was raised in 124 transactions, signaling continued investor confidence in the sector. However, it’s worth noting that this data was compiled before interest rates spiked and lender Silicon Valley Bank faced disruptions that affected the entire North American tech sector.
The addition of Shewchun to Fasken’s team will enhance the firm’s ability to provide comprehensive legal support to the tech industry. With his deep knowledge of the innovation economy and experience in successful startups, Shewchun is well-positioned to assist Fasken’s emerging tech group in delivering top-notch services. The firm’s dedication to startups and its commitment to understanding their limited budgets for legal services will contribute to the continued growth and success of early-stage companies in Canada. As the tech industry evolves, Fasken aims to remain a prominent legal adviser to the sector, alongside law firm Osler, Hoskin & Harcourt LLP, which shares a similar focus on startups.
