Team size: Three

Focus on…Are you ready to GC a startup?

As general counsel, when wondering whether a start-up company should be next on your career path, your risk aversion is the most critical aspect to consider.

If you are the kind of general counsel that aims to always be 100% safe and avoid any legal or regulatory risk, then start-ups are definitely not the place for you. Avoiding risk altogether in a start-up means saying ‘no’ too often. Start-up runaways are mercilessly short, even for the most successful ones, as success often means hyper-growth, which usually means an alarmingly growing burn rate. Start-ups need to move forward and grow to survive constantly. This ‘do or die’ energy puts much pressure on any ‘bottle-neck’ approvers in the company, most notably the general counsel.

Furthermore, being 100% risk-free is neither operationally nor financially realistic, especially for a start-up just starting. Initially, all resources are minimal, and everyone is stretched very thin, and as the resources grow, so does the work.

This does not mean that a general counsel in a start-up is expected to ignore risk and approve all. In fact, all risks need to be assessed and managed wisely, and the general counsel is expected, even more so than the legal expertise to bring to the table creativity and problem-solving skills; to work with the other stakeholders — mainly product, marketing, development and operations to find ways to mitigate the risks while still being able to allow the product to exist and succeed. All legal and regulatory potential risks should always be reflected by the decision makers in full transparency, along with the risk level and likelihood of each risk materialising and any suggested action plan. And any residual risk needs to be acknowledged and added to the company roadmap. This type of work, while sometimes incredibly stressful, can also be advantageous and exciting. Fighting for a product you believe in and working together for the same purpose with various stakeholders from across the company — developers, designers, storytellers, account management, IT and security specialists, customer services and operational managers. Almost every contract is entirely different from the last, and each negotiation is a whole different ball game, often with little negotiation power, coming into it as the smaller start-up company that is more ‘risky’ to work with. In this environment, you must know your product and company to be able to tell its story well and stand behind the legal decisions made.

Unlike in big companies with larger legal teams, in a start-up, there are usually no specific parameters to any position, not even the general counsel. Once trust is established, there are no limits to how anyone in the company can contribute. Ideas are welcome, seniority is almost no reflection of anyone’s power to affect change, and anyone willing and capable of taking on a task is encouraged to do so.

Finally, though risky and sometimes short-lived, the atmosphere in a start-up is energetic and dynamic; a “sky is the limit” vibe in well-designed spaces with fully equipped kitchens peppered with team-bonding events, parties and the sought-after branded swag.