M&A lawyer and Miami native Josh Samek is optimistic about 2024 for #MiamiTech. Here’s why

By Riley Kaminer

It’s no secret that 2023 was a tough year for startups from a fundraising perspective (despite some clear bright spots in #MiamiTech).

The question on everyone’s mind: What does 2024 have in store?

Josh Samek, a corporate lawyer and partner in Sidley Austin’s Miami practice, has a unique perspective on our local startup scene. He is a Miami native and University of Miami graduate who has practiced in Miami his whole career.

“It’s been interesting to see the evolution of our market and the hyper speed at which it has grown in the last few years,” he told Refresh Miami. A high-profile firm such as Sidley Austin having a growing presence in Miami is, in Samek’s mind, “emblematic of the growth of the tech industry in Miami.”

“There has always been innovation here, but companies would struggle with access to capital – access to the same opportunities as startups located in other cities,” he continued. “But that dynamic has changed in the last few years,” with an inflow of funds and portfolio managers in South Florida.

Legal service providers have responded accordingly. “The caliber of services provided locally has gone to the next level,” noted Samek. While there has always been a large pool of legal talent here, the growth of Miami’s client base has enabled law firms to specialize more. This will ensure that our local entrepreneurs can have all their legal needs covered without having to leave Miami.

Despite the growth of Miami’s tech scene, Samek maintains that the number one challenge he sees startups face here is access to capital. Changing valuations, corresponding with a rocky couple of years in the market, can create structural difficulties in deals, he explained. There has also been a notable decrease in available debt funding.

Meanwhile, Samek has noticed that those that have funding are being very careful with how they deploy it. “Good companies of all sizes are paying attention to regulatory scrutiny,” he said, highlighting that startups in rapidly-evolving industries such as artificial intelligence are making sure their business and growth plans are compliant. “Startups need to invest in building their business in a way that will be scalable but also compliant with applicable regulatory obligations.”

Increasingly, Samek sees middle market players becoming active in the M&A space. “Macroeconomic trends are still favorable for many companies, especially companies that are in the mid market and are looking for ways to grow.” For these companies, growth via acquisition can drive a quicker return of capital while, of course, provide an appetizing exit strategy for startup founders.

Samek is broadly optimistic about 2024. “Given recent pronouncements from the Fed, we should see an increase in access to capital in 2024, which will allow companies to take capital and grow as well as companies to deploy capital and be acquisitive.”

“We’re excited to continue to see the market grow and to participate in the growth and the maturation of our market,” he added. “We continue to see migration to South Florida, and think that the future for our region and our ecosystem here is bright.”

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Riley Kaminer

I am a Miami-based technology researcher and writer with a passion for sharing stories about the South Florida tech ecosystem. I particularly enjoy learning about GovTech startups, cutting-edge applications of artificial intelligence, and innovators that leverage technology to transform society for the better. Always open for pitches via Twitter @rileywk or www.RileyKaminer.com.