C&P Represents The Demex Group in VC-Backed Management Buyout

Led by partner, Alec Rosenberg, C&P was thrilled to represent The Demex Group ("Demex") and its Founder and CEO, Edward Byrns, in connection with a management-led spinoff, foundational tech transfer transactions, and a simultaneous investment from a consortium of leading venture capital firms.

Mr. Byrns originally developed Demex's core intellectual property and business model, which enable a wide range of transactions to help businesses hedge or transfer weather-related risks, as a start-up venture within the Munich Re reinsurance company. As described in a recent profile in the Washington Post, the company's proprietary technology enables rich, data-driven insights into highly specialized and localized weather-related risks, such as the likelihood that a commercial real estate owner will exceed its budget for snow removal in a given season, or the risk that a beach resort will lose significant revenue due to an unusually rainy period. Such businesses can then craft, price, and consummate weather-derivative transactions, as well as model and develop other "climate resiliency" techniques, via Demex's powerful SaaS platform. Demex thus stands at a cutting-edge intersection of Big Data, financial risk management, and the looming climate crisis.

As Mr. Byrns explains:

One thing we know is that climate change is making everything more volatile. Climate resiliency means creating a shock absorber for climate change. And we hope to be that shock absorber.

With Mr. Rosenberg at the helm, C&P worked closely with Mr. Byrns to orchestrate the negotiation, drafting, and closing of the numerous transactions through which Demex was created, acquired critical IP and data streams from Munich Re, and accepted more than $4M in early-stage financing from multiple investors. Consistent with his core "outside GC" practice, Mr. Rosenberg now serves as Demex's principal legal advisor, counseling the company and Mr. Byrns on a wide range of intellectual property, corporate governance, commercial transaction, and employment-related matters.