Nlaw > Zagreb, Croatia > Firm Profile

Ambrož Arko, Managing Partner, Nlaw

What do you see as the main points that differentiate Nlaw from your competitors?

Over the past years Nlaw has positioned itself as a leading boutique law firm specialized in venture capital and private equity deals. What sets Nlaw apart from other law firms is our client-focused attitude and a highly responsive team of skilled attorneys. Moreover, Nlaw has gained deep expertise and invaluable networks in the regional venture capital scene, enabling us to often give advice not only from a legal view but also from a commercial standpoint.

One of the key Nlaw advantages is our tech-savvy approach, where we are able to quickly adapt to the new and ever-changing technological reality. With a startup-like mentality, Nlaw is always testing new software and finding the best solutions to service the clients in a more efficient way.

Which practices do you see growing in the next 12 months? What are the drivers behind that?

Despite the somewhat reduced valuations in the venture capital and private equity markets we are witnessing formations of new funds in the region, signaling there is still available capital to be deployed in the market. Funds vintage 2023 could turn out to be hugely successful in the long term. While we do see a slowdown in the M&A market, VC seed and A round funding continues to be strong.

With adoption of Markets in Crypto-Assets (MiCA) Regulation, we also see potential growth of legal services in the crypto and blockchain market.

Considering the rising hardships in the market, ranging from interrupted supply chains, increasing inflation and unstable energy markets, we see potential increase in legal services related to public tenders and state aid.

What’s the main change you’ve made in the firm that will benefit clients?

We believe that the key change is a shift in thinking; although we operate in a high-stakes and therefore conservative environment, we are adamant in finding innovative ways to service the clients in a rapidly changing world. We have implemented several solutions helping us to be even more responsive to our clients’ needs.

Is technology changing the way you interact with your clients, and the services you can provide them?

Right from the outset in 2016, Nlaw has been an avid adopter of both, attorney-friendly, as well as client-friendly solutions. For instance, remote work and online (instead of or parallel to offline) meetings was a standard practice at Nlaw long before the Covid pandemic.

Technology is definitely impacting the everyday life of Nlaw attorneys, helping us from drafting and compiling agreements to reviewing and analyzing vast due diligence documentations; and to automated scheduling of meetings. The technological improvements are further translated to our clients, receiving a much quicker legal analysis and insight into complex matters and consequently more valuable legal advice.

Can you give us a practical example of how you have helped a client to add value to their business?

Nlaw has been known to quickly orient itself and set the strategy course in complex cases. In a recent case, in autumn 2022, we were approached by a real estate fund which was already half-way through a process of acquiring a prime business real estate in Ljubljana, Slovenia. We were able to immediately pinpoint the hidden risks and devise a negotiation strategy with the opposing party. We carried out a confirmatory due diligence and negotiated as well as redrafted crucial parts of the purchase agreement as well as coordinated relations with the bank, financing the deal. We were engaged as the key negotiators in the remainder of the process, improving our client’s position by mitigating the pertinent legal risks, while at the same time successfully closing the deal under considerable time pressure.

Are clients looking for stability and strategic direction from their law firms – where do you see the firm in three years’ time?

Clients are looking for strategic direction especially in VC (how to navigate the investment process) and M&A (how to maximize the value). Time and time again our relevant experience and regional networks have proven to be invaluable, and we see ourselves only more integrated in CEE VC and PE space.

Martin Hren, Managing Partner

Martin Hren, Nlaw Croatia’s Head unveils firm’s dynamic approach to client needs

1) What do you see as the main points that differentiate Nlaw from your competitors?

Nlaw is deeply ingrained in the legal landscapes of Central and Eastern Europe (CEE) and the European Union (EU), but we’ve also recently expanded our presence into the United States. Our work involves collaborating with private equity (PE) and venture capital (VC) funds, as well as startups and established businesses. This dual focus allows us to gain insights from both sides of the business spectrum. We strive to understand the innovative products, services, and technologies behind them while also serving as a central point of contact for traditional corporate structures and medium to large businesses. These distinctive features make Nlaw a standout choice in the legal sector.

2) Which practices do you see growing in the next 12 months? What are the drivers behind that?

One area experiencing significant growth is technology law, encompassing a wide range of legal aspects driven by the rapid advancements in AI. This includes the introduction of new EU regulatory regimes such as the AI Act and MiCAR. Over the past five years, there has been a substantial increase in VC funding and startup activity in Croatia and the wider region, a trend that is expected to continue in the coming year. Conversely, M&A activity involving established businesses and PE funds has experienced a slowdown in the past year, but we anticipate a resurgence in the market with promising business opportunities emerging in Croatia.

3) What’s the main change you’ve made in the firm that will benefit clients?

A significant improvement we’ve implemented within our firm, directly benefiting our clients, is our shift towards a client-centric service delivery approach. This encompasses customized alternative fee arrangements tailored to each project, business, and/or client, which include legal project management from initial intake to communication, budget oversight, and final deliverables, as opposed to the traditional billable hours scheme. Furthermore, we are investigating the adaptation of common law legal instruments that have demonstrated business-centric effectiveness to suit our market, ensuring adherence to local laws for the mutual benefit of both our clients and the professional development and education of our team.

4) Is technology changing the way you interact with your clients, and the services you can provide them?

Undoubtedly, technology is reshaping our interactions with clients and transforming the legal services we provide. We harness technology to optimize and expedite our practice, utilizing a diverse array of LegalTech tools for various aspects such as contract drafting, review, due diligence, client communication, and project management. Furthermore, technology facilitates document management and enables us to analyze legal data, yielding valuable insights that enhance our capacity to deliver efficient and strategic legal solutions.

5) Can you give us a practical example of how you have helped a client to add value to their business?

I believe our clients reap the biggest benefits from our proactive stance on legal updates and ongoing technology education for our team, we ensure the delivery of the latest legal insights and information essential for our clients’ businesses. This results in continuous process enhancements, ultimately benefiting the end-consumer product or service experience.

6) Are clients looking for stability and strategic direction from their law firms – where do you see the firm in three years’ time?

Indeed, clients frequently seek stability and strategic guidance from their legal partners. They expect us to act as allies, supporting them in various endeavors such as navigating regulatory initiatives. This involves keeping up with regulatory changes, actively engaging in public consultations, and providing legal counsel when needed.

Looking ahead, our firm aims to expand our practice in Croatia through organic growth. We intend to capitalize on our established presence in Slovenia and maintain a flexible approach to accommodate our clients’ diverse needs.