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£60 million lawtech start-up closes ‘after failing to figure out how to deliver better efficiency than a traditional law firm’

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Legal software specialist Atrium lays off all 100 employees

A lawtech start-up that received an eye-watering £60 million in funding has gone under after it reportedly failed to compete with traditional law firms.

Legal software specialist Atrium is said to have folded on Tuesday, laying off all of its employees totalling just over 100.

“I’m really grateful to the customers and the team members who came along with me and our investors,” Atrium co-founder and CEO Justin Kan told TechCrunch. “It’s unfortunate that this wasn’t the outcome that we wanted but we’re thankful to everyone that came with us on the journey.”

The report claims Atrium’s closure was due to its failure “to figure out how to deliver better efficiency than a traditional law firm”.

Kan also confirmed to the website that Atrium will return some of its £60 million in funding to investors, which included Silicon Valley venture capital firm Andreessen Horowitz.

Atrium didn’t respond to Legal Cheek‘s request for comment. However Kan did confirm the shut down on Twitter:

Founded in 2017, Atrium built software for start-ups to navigate fundraising, hiring and collaboration with their legal team. Atrium also offered in-house lawyers that could provide counsel on these matters.

The start-up operation has wound down but the standalone Atrium law firm will continue to operate.

The struggling start-up was previously reported by the website to have laid off between 10 and 50 staffers earlier this year.

Kan founded live-streaming service Justin.tv which reinvented itself as Twitch, a live-streaming platform for gamers, and was sold to Amazon for £746 million in 2014.

Described by TechCrunch as “a charismatic leader with a near-billion-dollar exit under his belt”, investors and founders, it said, were quick to buy into Kan’s vision. Just one year on from its launch Atrium secured £50 million in funding.

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14 Comments

Paul

Some cakes don’t rise. Not all dogs will fetch the bone. Sometimes it just stays limp.

(23)(0)

Anonymous

Some projects just kick the bucket

(4)(0)

Anonymous

“Thanks for sending us all that cash. We really tried to make ourselves seriously rich with your money, but it didn’t happen. Maybe next time.”

(29)(2)

Lc

He was already seriously rich

(1)(1)

Anonymous

Then he is a greedy cnut.

(5)(0)

Anon

At first, I thought this was satire

(5)(1)

Lol

Susskind on suicide watch.

(32)(0)

Tech Skeptic

“There will be almost no new graduates at law firms and big four by 2020” he predicted in 2010.

Meanwhile the graduate intake at both increased substantially over the last decade.

Not the greatest prognosticator to ever grace the earth…

(2)(0)

I see a space in the Market

It would interesting to learn why Atrium were unable to compete. And learn from it. And rise again from the ashes.

(8)(0)

Anonymous

“Atrium didn’t respond to Legal Cheek‘s request for comment” – has anyone ever responded to the LC requests for comments? Should have a special software to put this line in every article – would save a lot of time and money.

(29)(0)

Anonymous

As should “Legal Cheek responded positively to [insert influencer’s] offer of payment for a story”

(6)(0)

Rok Fooker

Operationally – law is one of the flattest business infrastructures going.

You can only make more money by making it more flat, faster and reducing the price of the people in the flatness.

New law is fucked.

Pass it on.

(11)(0)

Celine

There were nights when the wind was so cold that my body froze in bed if I just listened to it right outside the window. Rest in peace hey.

(2)(1)

Meat

I sang it better b***ch!

(0)(0)

Comments are closed.