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Atrium shuts down, laying off 100

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Re: Atrium shuts down, laying off 100

#101
I contacted atrium in December to see if they could help me with an acquisition, but they didn't even want to take me on as a client because I wasn't big enough yet. I should have guessed there was some trouble behind the scenes. I ended up just going with my gut, doing my own quick study on aquisitions, and went ahead with the aquisition without a lawer on my side looking things over.

I think it turned out ok... time will tell I guess.

Re: Atrium shuts down, laying off 100

#102
One of the worst contracts I ever had was for a small company running a SaaS for divorce attorneys to help manage their cases.

The main selling point was that it would re-create state forms on the web and allow an attorney to fill them out, print them, and manage a case.

These forms would change many times a year and they were written using horrible PHP libraries that required every piece of the form to be drawn using coordinates. If one thing changed on the page (which happened often), all coordinates would shift and have to be re-written.

Aside from this, the owner had the first version written by developers overseas a few years earlier and I was hired as part of the 2.0 team that consisted of more inexperienced overseas developers and resulted in even more of a mess than version 1.

Some gems from the owner:

She once put on her Linkedin profile that one of her accomplishments was the ability to hire developers on a volunteer basis or well below marker value. It was taken down within a day.

I was finally let go and was told straight to my face that she was going to hire someone from India for 1/3 what she was paying me.

Re: Atrium shuts down, laying off 100

#103
post #10

Earlier quoted context omitted.

Never really seen a "pivot to tools" work (after I tried it with one company, and it failed, I started noticing when others tried it too).

Slack is an example

Good example!

It wasn't quite what I thinking as it isn't really "our game startup failed; let's sell game tools" but still it counts.

Re: Atrium shuts down, laying off 100

#105
post #43
post #10

Earlier quoted context omitted.

Never really seen a "pivot to tools" work (after I tried it with one company, and it failed, I started noticing when others tried it too).

I see business services companies build tools in their vertical industry and become successful all of the time. You just can't take venture funding.

The question is over a pivot from "I'm going to provide product/service X at a profit due to my tool T" to "Well, I couldn't sell X so I'll sell T to other people who want X". If you couldn't make a go of it, is it really likely others will, or if they can that they will want your tool T to do so?

This is different from either providing a service and successfuly using your own software to do so or providing a service and developing as well tools specifically for your customers.

Slack was suggested by another poster as a company that pulled this off, though I'm not sure the communication tool was considered crucial to the game business.

Re: Atrium shuts down, laying off 100

#106
> Atrium had attempted a pivot back in January, laying off its 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.

It's hard to detect my own bias of course, but this seems like a really cynical move. I understand the need to improve margins but essentially trying the train our processes so we can fire you is off-putting and borderline offensive to workers. For positions closer to the furnace of automation and jobs that are generally dangerous that people don't take pride in it can be minimally destructive but law is not one of those professions.

It's preferable to get into businesses that don't screw over anyone, but if you're going to screw over someone maybe don't screw over smart highly paid professionals that are providing your core value proposition.

Re: Atrium shuts down, laying off 100

#107

I swung by the Atrium booth at the Startup Grind conference a few weeks ago. A former lawyer, I was curious to hear their pitch. It was basically: we get you cheap lawyers, and we help them find new clients. I asked if all of their lawyers are based in the US, and they couldn't give me a straight answer. Eventually, when I said "well, of course they must all be US-licensed lawyers, right?" they said "oh, yeah, they m…

Also they could have hired lawyers with US law degrees who passed various US bars but who live in India. Doesn't sound like whoever was at the both had the faintest idea of what was going on.

That's how radiologists could analyze x-rays and such remotely: they were actual US-trained radiologists with licenses in US states who preferred to go home to India.

Re: Atrium shuts down, laying off 100

#108
post #107

I swung by the Atrium booth at the Startup Grind conference a few weeks ago. A former lawyer, I was curious to hear their pitch. It was basically: we get you cheap lawyers, and we help them find new clients. I asked if all of their lawyers are based in the US, and they couldn't give me a straight answer. Eventually, when I said "well, of course they must all be US-licensed lawyers, right?" they said "oh, yeah, they m…

Also they could have hired lawyers with US law degrees who passed various US bars but who live in India. Doesn't sound like whoever was at the both had the faintest idea of what was going on. That's how radiologists could analyze x-rays and such remotely: they were actual US-trained radiologists with licenses in US states who preferred to go home to India.

True, and I actually considered possibilities like this. But it would be pretty difficult/expensive/time-consuming for people to come to the US, go to law school, study for and pass the bar, and then go back to a low-cost-of-living place to practice law.

In most states, you have to go to an accredited law school in order to even sit for the bar, and all of such law schools are located in the US (and charge commensurately-priced tuition). I believe there are ways around this in medicine because you can go to medical school elsewhere and then sit for boards in the US. Even if you have a foreign law degree, you still have to get a 1-year LLM ($60k) in order to sit for the bar.

Re: Atrium shuts down, laying off 100

#109

I swung by the Atrium booth at the Startup Grind conference a few weeks ago. A former lawyer, I was curious to hear their pitch. It was basically: we get you cheap lawyers, and we help them find new clients. I asked if all of their lawyers are based in the US, and they couldn't give me a straight answer. Eventually, when I said "well, of course they must all be US-licensed lawyers, right?" they said "oh, yeah, they m…

The most expensive lawyer is one the one that loses. Going cheap on legal representation is not great business advice.

I'm not sure what your first sentence means, but you're absolutely right that some GCs go with expensive outside counsel precisely because they're expensive. If it's a legal matter that's critical for the company, the GC can get blamed for going with a cut-rate firm, but not for going with a firm that's 'too expensive'.

Re: Atrium shuts down, laying off 100

#110

what if a startup charged $300 per month for all you can eat email legal advice backed by a rich library of templates? they would instantly dominate and there are 6M small businesses in the USA alone

Cookie cutter legal advice is a landmine/footgun for a business. Even Stripe Atlas will lead you down a dangerous path if you don't check with a lawyer when incorporating. Don't fuck around with business legalities, it ain't worth it. Unfortunately, if you even think about your attorney, you'll be charged for it but the peace of mind is worth it. Having a lawyer you trust, is timely to questions, and works fast is ju…

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