Enabling computers to carry out legal intensive tasks in a bid to allow attorneys to concentrate on advanced problem solving for their clientele.
This marks the rewarding idea behind Atrium LTS, which is Twitch co-founder Justin Kan’s new machine learning startup.
The company is known for digitizing legal documents and creating applications on top in an effort to expedite equity distribution, commercial contracts, fundraising, and employment issues. For instance, one of the startup’s applications automatically converts financing documents into Excel cap tables.
Automating costly legal tasks has resulted in fast growth to 250 clients and 100 employees for Atrium.
The startup came of stealth one year ago, particularly with a $10.5 million party round prior to going to Y Combinator in the last winter. Impressively, Atrium recently secured $65 million in a financing round led by Andreessen Horowitz.
Thanks to the high influx of money, Atrium can now create more internal tools that it can utilize in carrying out client work faster compared to its traditional competitors.
“We can ultimately be this platform on top of which you’re building these legal business and eventually other professional services and software services. They’re all sitting on top of the platform that understands legal documents.”
According to additional Atrium news, Y Combinator’s top partner Michael Seibel is expected to become part of the startup’s board.
Initially, Kan failed to mention that two of Atrium’s co-founders legal partner Bebe Chueh and CTO Chris Smoak have left the company. Later on, he went ahead to say that they had moved out of the company several months prior to the new funding.
The business model currently being used by law firms has left room for massive disruption, specifically from technology entities such as Atrium.
“Law firms generate revenue from hourly billing, and lack an incentive to vastly improve efficiency.
Many law firms dividend out all their profits at the end of each year, making it hard to invest in the expensive investment of building software.
Software is hard to build inside a software company, much less a law firm,” wrote Chen.
Since Atrium is an engineering startup with a legal client base, it takes the most time-consuming and common activities and, in turn, creates machine learning workarounds.
As such, Atrium’s lawyers can now concentrate on giving advice to their clientele, particularly on what to do as opposed to spending a lot of time trying to spot tiny quirks in the documents.
In the meantime, Atrium’s technology is limited to a thin band of use cases.
Chen wrote: “over $300 billion is spent per year in the enterprise legal market.” For this reason, he said that there was adequate room for growth, especially now that Atrium is well capitalized.
The startup will have to persuade large corporations to get rid of the traditional techniques and allow computers to take over or help.
Atrium is not a SAAS entity that forces its clients to utilize the technology themselves.
Nevertheless, it can ease its clientele into the new revolutionary world service by service, which could allow it to produce network impacts that could drive the entire enterprise.