Lifecycle of a Tech Startup Series

The Court of Appeal has recently handed down an important decision in respect of data protection law considerations in Farley & Others v Paymaster (trading as Equiniti) [2025] EWCA Civ 1117, providing clarity on the scope of infringement and compensation data protection claims under the UK GDPR and Data Protection Act 2018 (“DPA”). The judgment will be of particular interest to any service provider dealing with and processing large volumes of customer personal data.  

In tech, the law often arrives after something has gone wrong. Here are three cautionary tales* and the lessons every founder, CTO and in-house counsel should take away.

The Data (Use and Access) Act 2025 (the “DUAA”), which received Royal Assent on 19 June 2025, introduces targeted reforms to the UK data protection legal framework — particularly the UK GDPR, the Data Protection Act 2018, and the Privacy and Electronic Communications Regulations 2003 (“PECR”).

The recent cyberattacks on major UK retailers have put cybersecurity back in the spotlight. But a more significant development for data protection practitioners has been flying under the radar: the Information Commissioner’s Office (ICO) has issued a notable fine directly against a data processor for breaching UK GDPR security obligations - an important shift in enforcement focus.

On 6 April 2025, the first wave of consumer protection provisions under the Digital Markets, Competition and Consumers Act 2024 (“DMCC Act”) came into force, marking the most significant overhaul of UK consumer protection law in over a decade. 

In the wake of recent high-profile cyber-attacks on major retailers like Marks & Spencer and Co-op, the UK government has launched a new voluntary Code of Practice for software vendors at its flagship cyber security event, CyberUK 2025. This initiative sets a dynamic baseline for software security and resilience, aiming to help prevent such breaches in the future.

The Office of Communications, commonly known as ‘Ofcom’ (the regulator for communication services) is calling on tech firms to make ‘the online world safer for women and girls’. 

Last week, I had the pleasure of hosting an insightful roundtable dinner at The Ivy in Covent Garden, London, bringing together thought leaders, industry experts, and business owners to discuss one of the most pressing topics of our time - AI regulation. Co-hosted by the brilliant Fred Becker, CAO of Unlikely AI, the conversation was rich with diverse perspectives, practical concerns and strategic insights.

The EU Data Act is set to reshape the data landscape, and while its full impact will unfold over time, some key provisions are coming into effect this September that SaaS providers need to be aware of now. Specifically, we're talking about the rules around data switching, and how they'll likely require you to update your standard terms and existing customer agreements.

In our ongoing series, "Anatomy of a Deal - The 9-step Guide to Selling Your Business," we've been breaking down the intricate steps involved in selling a business to provide clarity and guidance to business owners embarking on this journey.

In the previous instalments, we've covered crucial aspects such as engaging advisors, drafting heads of terms, conducting due diligence, preparing transaction documents, addressing disclosure, and finalising ancillary documents. Now, as we delve deeper into the intricacies of the deal, we'll explore the pivotal steps that take place during the exchange, completion, and post-completion phases.

In this part 2 of our Anatomy of a Deal blog series, we delve into the complexities of transaction documents, disclosure, and ancillary documents.

Business owners spend many years and a lot of effort building their businesses to the point where they can look to sell it, building a wide range of skills and tactics to deal with issues that arise.  However, the process of buying and selling companies is often outside their experience and can seem overwhelming. In the first part of our three-part series, we'll explore the initial stages of the sale process. From engaging advisors to crafting heads of terms, we break down the critical first steps on the path to selling your business.

As of 31 January 2024, significant changes are set to take effect in the certification process for high net worth individuals (HNWI) and sophisticated investors. These amendments, extending across England, Wales, Scotland, and Northern Ireland, will impact the financial promotions landscape, requiring individuals and firms to adapt to the new rules.

On 12 October 2023, the UK-US Data Bridge (the “Data Bridge”) came into force, transforming the way both nations handle the flow of information across their borders. In this blog we explore the position before and after the introduction of the Data Bridge, looking at the key implications, benefits and challenges associated with the transatlantic data-sharing initiative.

The Online Safety Bill recently received Royal Assent and became law in October this year (the “Act”), at which point the Office of Communications (“Ofcom”) was granted broad powers to regulate online service providers. Essential detail concerning the legislative framework within the Act will be disclosed in the course of consultation and stakeholder engagement concerning the secondary legislation, codes of practice and guidance which will underpin the Act.

Our investment and technology teams regularly advise tech startups as they progress from the initial pre-seed stage to being venture-funded enterprises on the cusp of an exit. Whilst the journey of every tech startup is unique, we’ve noticed that certain legal issues commonly crop up, and so we’ve created a case study to shed light on those issues and share our expertise on how to deal with them.

The rescue of SVB  showed that the UK government not only acted decisively in relation to a critical sector for the UK economy, but in the process showed that its newest policy Framework can involve meaningful action as well as words

KNow Wear Limited has been going from strength to strength and is now looking to expand and market the product overseas. For our founders, this will mean significant time commitments over the next few years as they carry out their expansion plan. Chris has concerns about the business taking time away from his family and he is now looking for a less-demanding role. You, Chris and Sarah have an informal meeting to discuss Chris’ role in the business and the future of KNow Wear Limited.

The EMI share options which KNow Wear Ltd granted to Aggie and Edith in episode 12 have really worked to incentivise them; and thanks in large part of their efforts, the company is getting lots of advanced orders for the product. In order to ensure that the company has enough bandwidth to keep up with demand, you, Sarah and Chris have started to think about raising more funds. This is to ensure that the company can produce the number of units it needs to fulfil the orders, and then actually physically fulfil them.

In advance of trialling the product with a test group of 100 consumers you, Sarah and Chris are now turning your attention to compliance with data protection legislation, given that the trial phase will mark the commencement of the company processing a significant volume of consumer personal data. Users will need to provide their personal details in order to register an account with KNow Wear and reap the full benefits of the wellbeing wearable via the web-based platform which works alongside it.