Outside Counsel, Start Ups

How Hiring Outside Legal Counsel Benefits Your Tech Start Up

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While launching a new technology company can be an exciting prospect, starting a company always comes with legal risks. With no prior track record and confronting issues they haven’t deal with before, fledgling businesses too often find themselves confronting things like the prospect of litigation or intellectual property disputes, yet they don’t have the benefit of a full-time legal department like many bigger corporations do. This is why, if you’re at the helm of a new tech start-up, hiring outside legal counsel is likely your best option to get the legal help you need–especially if you hire one who has prior experience with tech companies. Below we’ll discuss some of the ways that your company could benefit from an outsourced general counsel.


Legal issues are quite common for tech companies, especially at the beginning. In the early months or years of your business, you could find yourself facing a wide range legal issues ranging from intellectual property concerns to compliance questions to employee disputes. The dilemma is that most tech start-ups don’t yet have the budget or, frankly, the need, to hire an in-house attorney to handle all these issues.

This is where hiring outside legal counsel can be a powerful and viable alternative. With outside counsel, you have the flexibility of only paying for services you need. Some outside GC firms (like Hood Venture Counsel) also offer on-call availability for a full range of legal services for a low monthly fee. This fee structure gives you the legal protection you need without breaking the bank.

Efficiency and Responsiveness

When you’re a tech company with no in-house counsel (as is typical), the last thing you need when facing legal challenges is to be scrambling to hire an attorney and bring them up to speed. By hiring an outside general counsel before these issues arise, your GC is already familiar with your situation and can respond quickly and efficiently, minimizing the disruption to your business. This way, you have effectively the same advantage in legal disputes as if you had hired in-house counsel.

Expertise and Insight

While any good lawyer can advise you on legal issues, a tech-savvy general counsel will have specific expertise in dealing with the legal issues that commonly affect tech companies like yours. An experienced attorney can provide insights and recommendations specific to your business and help you navigate the complex legal landscape in front of you. They can offer advice on how to protect your intellectual property, resolve disputes, keep investors in the loop, and avoid contractual agreements that could ensnare you–effectively heading off legal problems before they even start.

One of the five biggest reasons why start-ups fail in their infancy is that they encounter legal or regulatory pitfalls that they didn’t anticipate and weren’t prepared to address. Hiring outside legal counsel can give you the critical protection you need without exhausting your precious resources too early in the game. You can breathe easier knowing that you have someone who is looking out for your interests and who is available to respond the moment problems arise.

At Hood Venture Counsel, we offer a full array of services for technology start-ups, including a concierge GC service that gives you the same benefits as having your own in-house counsel for an affordable monthly fee. To learn more about what we offer, contact us today.

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