INSUBCONTINENT EXCLUSIVE:
efficiency than a traditional law firm, the CEO tells A Technology News Room exclusively
The startup has now laid off all its employees, which totaled just over 100
It will return some of its $75.5 million in funding to investors, including Series B lead Andreessen Horowitz
in-house lawyers to become a more pure software startup with better margins
Some of its lawyers formed a separate standalone legal firm and took on former Atrium clients
But Kan tells me that it was tough to regain momentum coming out of that change, which some Atrium customers tell me felt chaotic and left
them unsure of their legal representation.More layoffs quietly ensued as divisions connected to those lawyers were eliminated
But trying to build software for third-party lawyers, many of whom have entrenched processes and older leadership, proved difficult
software for startups to navigate fundraising, hiring, acquisition deals and collaboration with their legal team
Atrium also offered in-house lawyers that could provide counsel and best practices in these matters
The idea was that the collaboration software would make its lawyers more efficient than a traditional law firm so they could get work done
documents, and Hiring, which instantly generated employment offer letters based on details punched into a form while keeping track of
The startup hoped it could prevent clients and lawyers from wasting time digging through email chains or missing a sign-off that could put
them in legal jeopardy.The company tried to generate client leads by hosting fundraising workshops for startups, starring Kan and his
stories from growing Twitch
Startups saw Atrium as an ally with industry expertise that could help them avoid dirty term sheets or botched hires.But keeping a large
squad of lawyers on staff proved costly
Atrium priced packages of its software and legal assistance under subscriptions, with momentous deals like acquisitions incurring add-on
The model relied less on milking clients with steep hourly rates measured down to six-minute increments like most law firms.Yet eliminating
The pivot sought to create a professional services network where Atrium could route clients to attorneys
The layoffs had shaken faith in the startup as clients demanded stability, lest they be caught without counsel at a tough time.Rather than
trudge on, Kan decided to fold the company
The standalone Atrium law firm will continue to operate under partners Michel Narganes and Matthew Melville, but the startup developing
focused software-only approach.
