100 people x 150k yr = $15M. Add insurance, office, heaaavy marketing, sales commission, non-frugal everything.. I'm guessing $20-30M over their 2+yrs. Maybe even more on people bc hiring lawyers.
Weirdly, the investors are happier with that than 5 smaller series A's of money-making / real-IP companies with existing growth engines. Easier to bet on nothing vs improving.
I do find the flameout odd, and not isolated to Atrium.
Why flameout vs spinoff a small business for folks who wanted to continue? Same difference to the investors, but meaningful to the lives of the believers. Worst case, just OSS for them..
Thinking more: A good comparison is Carta, also in legal, whose funding was more correlated to revenue and growth.
The end of the first paragraph says: "The separate Atrium law firm will continue to operate." The legal talent already did spin-off with the last pivot.
Weirdly, the investors are happier with that than 5 smaller series A's of money-making / real-IP companies with existing growth engines. Easier to bet on nothing vs improving.
I do find the flameout odd, and not isolated to Atrium. Why flameout vs spinoff a small business for folks who wanted to continue? Same difference to the investors, but meaningful to the lives of the believers. Worst case, just OSS for them..
Thinking more: A good comparison is Carta, also in legal, whose funding was more correlated to revenue and growth.