Rocket Fuel Ep #4: Legal Essentials for Startups: When to Hire In-House vs. Fractional General Counsel (Key Startup Legal Tips)

Pitch Please

Legal Essentials for Startups: When to Hire In-House vs. Fractional General Counsel (Key Startup Legal Tips).

Dive into the legal essentials every startup needs with this episode of Rocket Fuel on the Pitch Please podcast! Featuring Mike Thibodeau and Brett Colvin, CEO of Goodlawyer, this discussion focuses on the critical decisions startup founders face when choosing between external legal counsel, hiring in-house legal support, or opting for a fractional general counsel to meet their growing legal needs.

• When should startups hire in-house legal counsel? Discover the pivotal moments where hiring in-house becomes crucial for startup growth and avoiding legal pitfalls.
• The cost-effective benefits of fractional general counsel: Learn how a fractional GC can provide startups with the flexibility they need, offering expertise without the full-time commitment.
• Key legal milestones for startups: Why setting up early legal frameworks like founder agreements and solid customer contracts is essential to avoid costly mistakes.
• Real-world examples of legal strategy: Hear stories of startups that have strategically managed their legal resources to fuel growth and protect their businesses from common legal challenges.

For more insights on startup legal tips, check out this detailed blog post from Goodlawyer on 5 common contract fails and how to avoid them.

• Early-stage startups should engage external counsel for project-based legal support, focusing on key legal milestones such as founder vesting agreements and early contracts.
• Fractional general counsel is a smart, scalable option for startups with emerging legal needs, typically around the 20-30 employee mark, when legal issues start to directly impact revenue.
• Solid contracts with end customers are essential, especially for B2B startups. A fractional GC who understands the business can help create robust legal agreements that protect your startup.
• A fractional general counsel provides flexibility and scalability, offering expertise in areas like corporate law and commercial contracts without the overhead of a full-time legal hire.
• Engaging a fractional GC saves time, streamlines processes, and helps remove legal bottlenecks, allowing startups to unlock new revenue opportunities.

For more on how fractional general counsel can benefit your startup, check out this article on Goodlawyer's Fractional GC services.

• 00:00 - Introduction and Overview
• 01:02 - Engaging a Lawyer: Spectrum and Options
• 09:38 - When to Consider In-House Counsel
• 14:04 - The Importance of Founder Agreements
• 20:39 - Understanding Fractional General Counsel
• 23:21 - Cost-Effectiveness of Fractional GC
• 23:54 - When to Consider Hiring a Fractional General Counsel
• 25:49 - The Expertise of Fractional General Counsel
• 27:36 - Managing Legal Bottlenecks with Fractional GCs
• 28:31 - The Benefits of Goodlawyer's Network
• 29:48 - Unlocking Efficiency and Revenue with Fractional GCs
• 32:15 - Transitioning to Fractional GCs: Managing Resources
• 35:18 - Consistency and Familiarity: Turnover in Big Firms vs. Goodlawyer's Network

Brett Colvin is the Co-founder and CEO of Goodlawyer, a tech company revolutionizing how lawyers and businesses work together. After practicing as a corporate lawyer at Canada’s largest law firm, Brett saw the inefficiencies in traditional law firms and decided to create a solution. Since 2019, Goodlawyer has grown to serve over 5,000 clients across Canada, offering innovative solutions like Fractional GC™ and Fractional InHouse™ services.

Learn more about Brett on his LinkedIn and discover how Goodlawyer is transforming legal services for startups by visiting their website.

• Brett: LinkedIn
• Goodlawyer: LinkedIn
• Website: Goodlawyer.ca

Reach out to Brett and the Goodlawyer team today via LinkedIn or their website.