$75M legal startup Atrium shuts down, lays off 100

Justin Kan’s hybrid legal software and law firm startup Atrium is shutting down today after failing to figure out how to deliver better efficiency than a traditional law firm. The startup laid off all its employees, just over 100, today. It will return some of its $75 million in funding to investors, including Series B lead Andreessen Horowitz. The separate Atrium law firm will continue to operate.

“I’m really grateful to the customers and the team members who came along with me and our investors. It’s unfortunate that this wasn’t the outcome that we wanted but we’re thankful to everyone that came with us on the journey” said Kan. He’d previously founded Justin.tv which pivoted to become Twitch, which later sold to Amazon.

Atrium had attempted a pivot back in January, laying off its in-house lawyers in an attempt to become a more pure software startup with better margins. Some of its lawyers formed a separate standalone legal firm and took on former Atrium clients. But Kan tells me that it was tough to regain momentum coming out of that change, which some Atrium customers said felt chaotic and left them unsure of their legal representation.

We’ll have more details shortly

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