Eitan Hoenig

$2,500/hour for counsel is absurd. Sorry - but it is. Here are some tactics for founders/biz leaders/and in-house counsel to keep costs down. First, let's get this out of the way. Why $2,500?? Because it pays for the "machine": - An army of associates paid princely salaries. - Massive, ballooning partner salaries. - Big, beautiful offices (and that 3rd house in the Hamptons). - World domination. Yes, the work is typically excellent, but that's not enough. Don't get me wrong - associates who can land a job in Big Law deserve to be paid well, and partners who have dedicated their entire lives to the practice deserve it too. They have worked their as*es off to get to where they are. But that doesn't mean I'm OK paying those rates. Quite the opposite. Most companies (especially in Silicon Valley and NYC) come out of the gate and hire Big Law firms before they even have PMF. Crazy - but this is pushed by VCs and an old-school narrative perpetuated by those interested in doing so. I'm not knocking Big Law, but if you don't have PMF, and you're still figuring out what you're building, running out of money is your most significant risk (not your privacy policy). 👇🏼👇🏼 Here are 5 actionable tactics to optimize Legal 👇🏼👇🏼 1. Stop and take stock of how much your legal and compliance (L&C) team costs internally and externally. In totality, you should not be spending more than 10% of your revenue on L&C (MAX!) - and that's for companies operating in highly regulated spaces (like FinTech). 2. Audit your external counsel. See what firms you're spending money on and for what purposes. I recommend hiring a few different firms rather than a "one-stop shop." Why? Typically, the latter is more expensive. You should have a mix of solos, mid-size, heavy hitters, and specialists. 3. Implement caps on assignments. For example, "I'd like you to review this agreement, but please spend no more than 2 hours on it." Don't be shy - ask for it, and if they can't meet your request, find someone else (spoiler: many AMAZING firms will work with you like this). 4. Review every bill (and line item). The Big Law model works for Big Law firms—not for companies. They are incentivized to bill, and you're incentivized to mitigate risk while building a company. Accordingly, there's typically a disconnect (which is why you hire in-house counsel). It's okay to push back. 5. Work collaboratively. If legal work is needed and you have in-house counsel, you can have your team do some of the research/writing/etc, with guidance from external counsel. This also works for memos. https://lnkd.in/exCNZ8zf

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Bailey Glasser partner Joshua Hammack has been included in Benchmark Litigation’s 2024 Benchmark 40 & Under list for Northeast – Washington, D.C. Joshua handles complex commercial litigation from inception through appeal, focusing on issues involving constitutional issues, statutory interpretation, intellectual property, product safety, insurance, contracts, and Title IX discrimination, among others. Just this year, Joshua argued a pair of appeals in the Second and Sixth Circuits concerning an issue of first impression—what it means to be a “consumer” under the Video Privacy Protection Act. Joshua also successfully argued a Title IX appeal before the Ninth Circuit, where the court vacated orders denying class certification for female student-athletes at Fresno State. He also secured an important appellate reversal last year in the Sixth Circuit, which agreed a challenged Kentucky law likely violated the Dormant Commerce Clause. Joshua was previously named to the 2024 Lawdragon 500 X – The Next Generation list, and is also a 2024 Best Lawyers Ones to Watch, Appellate Practice and Commercial Litigation. To learn more about Joshua, please visit: https://ow.ly/12sb50SYJ26 As set forth by Benchmark Litigation: “Every year, Benchmark Litigation sets out to identify the best and brightest litigators across the US. While it is certainly not an easy task selecting from such a wide array of accomplished young lawyers, we are excited to reveal our list of the top emerging talent in litigation.” Thank you to Benchmark Litigation and everyone who took part in this process. To learn more about Benchmark Litigation’s 40 & Under list, visit here: https://ow.ly/ZUUn50SYJ20 #benchmark #benchmarklitigation #40andUnder #appellate #litigation #baileyglasser #thankyou

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An in-house legal role isn't the "cushy" role it used to be. At a high-growth startup, it's probably one of the most demanding roles, and it may seem impossible to prioritize at times. This simple tactic will dramatically increase your team's effectiveness👇 When tackling a new problem or workstream, the first question is: 1️⃣ "Does an attorney need to do this, or can a non-attorney handle?" The next question is: 2️⃣ "Does a human need to do this, or can we leverage AI?" Most tasks do not require a law degree. Law firms have long leveraged non-attorneys to varying degrees. Smaller firms effectively use paralegals as attorneys, while larger law firms use paralegals to do more mundane tasks, like cite checking and filings. If you're running a legal division at a high-growth company, you should ALWAYS question whether a task requires an attorney or whether it just involves legal subject matter, which a non-attorney ( + AI) can handle. You should also ask whether this is a repetitive task that can be streamlined/productized/operationalized (e.g., sending out NDAs). Some of the most competent and effective members of our legal team are not lawyers. Rethinking "legal work," and who can perform it, has dramatically increased our velocity. This is no BS—it works. Try it out.

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When startups aim to hire their first GC it can be hard to pinpoint needs. Do they need someone to do contracts and a few other things? Do they need an IP specialist? Something else? I think you can get a sense by asking this (or some version of this)... How do you envision the GC contributing to this company's scalable success?

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Are you a decision-maker at a growth-stage company navigating complex legal waters? It's time to consider a Fractional Chief Legal Officer (CLO). Why a Fractional CLO? 1. Cost-effective expertise: Get top-tier legal guidance without the full-time executive salary. 2. Scalability: Flexible support that grows with your business needs. 3. Risk management: Proactively identify and mitigate legal risks before they become costly issues. 4. Strategic partner: Align legal strategy with business goals for sustainable growth. 5. Diverse experience: Benefit from a seasoned professional who has tackled various legal challenges across industries. 6. Efficiency: Streamline legal processes and decision-making without building an entire in-house team. 7. Investor confidence: Demonstrate strong legal governance to potential investors and partners. 8. Compliance mastery: Stay ahead of regulatory requirements in your rapidly evolving industry. 9. Crisis readiness: Have an experienced legal mind on call when unexpected challenges arise. 10. Focus on core business: Let a Fractional CLO handle legal complexities while you drive innovation and growth. Ready to elevate your legal strategy? Book a free consultation with me, your potential Fractional CLO. Let's discuss how I can help safeguard your company's future and accelerate your growth journey. 🔗 Book Now: https://lnkd.in/gkxAJu5q #FractionalCLO #LegalStrategy #StartupGrowth

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ICYMI: Law.com Radar's latest data mirrors that of Lex Machina's Antitrust Litigation Report 2024, revealing a notable 19% surge in antitrust filings in federal courts last year. This uptick marks one of the most significant increases in the past decade, encompassing various actions from class actions to regulatory appeals. Why the spike? Here are some key factors: 1️⃣ Increased enforcement of antitrust laws under the Biden administration. 2️⃣ Simultaneous investigations and filings by both government regulators and private plaintiffs' groups. 3️⃣ High-profile cases against tech giants like Google, Amazon, and Apple, alongside government interventions in cases concerning algorithmic pricing structures. 4️⃣ European Commission raids on industries like cement additives and replacement tires. But will this trend persist? #PodhurstOrseck's Matthew Weinshall, who recently filed two antitrust class actions in Florida relating to the sugar industry, weighs in ➡️ bit.ly/49Tvlew

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It is not clear to me at all that the #Vermont #privacy law will be signed into law, but we took our time to analyze what would immediately become the most onerous consumer privacy law on the books. It's confusing, and has a lot of layers to it. Thanks to Doris Yuen for authoring. https://lnkd.in/gtNFJEGP

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