Building a business from scratch in Silicon Valley is hard work. Between product development, marketing, sales, and administration, it's easy to overlook legal and regulatory requirements. No matter how much you plan, sooner or later every business needs legal counsel. And with legal work, an ounce of prevention really is worth a pound (or kilogram) of cure.

However, hiring a full-time, in-house legal counsel is simply cost prohibitive for many small-to-midsized companies. 

So what do these growing organizations do? 

For many, the solution lies in outside general counsel services (OGC). These services provide a flexible, cost-effective way for organizations to get legal guidance when they need it most, from someone who knows their business. All without the overhead of a full-time legal hire.   

For businesses in the early stage, when capital is precious, outside general counsel services present an opportunity to receive strategic, ongoing legal guidance on a much more flexible basis.  

Outside general counsel lawyers bring tremendous benefits to early-stage companies. They provide strategic advice, guidance in corporate governance, IP protection, and risk management, helping create a sound foundation that supports future growth.

What Are Outside General Counsel Services?

Outside general counsel services refer to attorneys or law firms that support the legal needs of startups and midsized businesses on an outsourced basis. 

When businesses require ongoing legal counsel, but are financially constrained from keeping a fully-dedicated, in-house team, these legal professionals provide a similar level of legal counsel that an in-house team would, but without the financial overhead. 

Outside general counsel lawyers integrate closely with a business. They learn their client's product and operations, and provide continuous legal advice and support for a wide range of legal issues that businesses encounter. 

Most outside general counsel services offer flexible engagement models, often working on a monthly or annual retainer, or a per-project basis. 

This flexibility is key, especially for startups, where unanticipated legal challenges can quickly arise.  

Who Can Benefit from Outside General Counsel Services?

For technology-focused startups and small to midsized businesses (SMBs), outside general counsel services are particularly attractive. 

That is because founders often find themselves focused on product development and customer acquisition, leaving little time to consider the legal requirements of their business. 

But even a single legal misstep, like failure to protect intellectual property or meet compliance obligations, can set a company back months. OGC services minimize the risk of legal errors, giving businesses confidence to focus on their core operations. 

Even established businesses can reap the benefits of hiring an outside general counsel. Companies in heavily regulated industries need a legal partner to ensure they remain in compliance with industry-specific laws, as well as federal, state, and even international data privacy and security laws. 

Businesses who are preparing for a round of fundraising or that are exploring expansion, mergers, or acquisition opportunities can benefit from the strategic guidance of business legal counsel services.

Why Hiring Outside General Counsel Makes Good Financial Sense

For organizations in the early or middle stages of growth, outside general counsel services make financial sense for a variety of reasons: 

• Cost Savings: Organizations get access to experienced legal counsel and advice without the costs associated with a full-time hire. In-house counsel typically requires a six-figure salary, plus benefits and perks. Working with outside counsel on an outsourced basis is often more cost effective.

• Access to Expertise: These professionals are trusted advisors who understand their clients' business and can proactively issue advice before a legal situation becomes an emergency. 

• Scalability & Flexibility: Their services are often flexible and scalable, allowing their clients to get the help they need, without overpaying for services they don't need.

Core Services Offered by Outside General Counsel Lawyers

Most outside general counsel lawyers provide a broad range of legal services. For startups and SMBs, they typically offer:

Corporate Governance Legal Counsel

Outside general counsel lawyers routinely help founders ensure they choose the right corporate structure. They assist with creating bylaws, board policies, and fiduciary duties. OGCs can help plan for fundraising rounds, and ensure that founders' interests are protected when negotiating with investors. 

Contracts & Agreements

Many startups establish business relationships with a variety of vendors and contractors. Business legal counsel services help them negotiate, draft, and review SaaS agreements, licensing deals, vendor contracts and non-disclosure agreements (NDAs) that govern these relationships so that they are clear and enforceable. 

Mergers and Acquisitions

Merging with or being acquired by a larger company is a significant achievement for a company, but before signing any agreements, outside general counsel services can review the proposed details to identify risks and protect your interests. A good OGC service can help you review stock purchase agreements and other relevant documents before finalizing the deal. 

Intellectual Property & Employment Matters

Securing your intellectual property (IP) is one of the most important considerations for a startup or mid-sized company. OGCs help tech startups protect their IP from theft and misuse. They also help organizations create employee agreements and policies, comply with labor laws, and create equity plans.

Risk Management, Privacy, & Strategic Guidance

Not all legal issues are transactional. Outside general counsel services can help their clients evaluate risk profiles in new ventures, product launches, and geographic expansions. 

In addition, data privacy is one of the most critical areas where OGC services can make an impact. Organizations that collect personal data, including those working with AI, healthcare technology, and other regulated industries have both a legal and ethical obligation to keep their users' personal data safe. 

Outside general counsel lawyers help their clients navigate regulatory requirements like the California Consumer Privacy Act (CCPA) and the EU's General Data Protection Regulation (GDPR). They assess the organization's policies and procedures for collecting, handling, and storing consumer data so that privacy risks are addressed before they become legal liabilities.

Their ongoing legal support is essential to helping young companies maintain compliance as they scale, and protecting consumer trust. 

The Benefits of Hiring Outside General Counsel for Tech Startups & SMBs

Outside general counsel services help businesses get more than just basic legal compliance. 

They help businesses get more value for their money, by avoiding the expense of a full-time hire, while still receiving high-quality and experienced legal counsel that fully understands corporate governance, IP issues, contracts, employment law, and regulatory compliance.

Whether it's ongoing legal counsel for business or a specific short-term project, OGC services provide flexibility. Clients can scale their services up or down to meet their current needs, ensuring that they're never overpaying for services they don't need.

That flexibility helps OGCs grow with their clients as they scale through their corporate lifecycle. They can proactively anticipate issues and provide legal guidance before they escalate, ultimately saving time and money, and even preventing reputational damage. 

SVTech: Outside General Counsel Services for Small and Midsized Businesses

Outside general counsel lawyers give startups and SMBs a flexible and cost-effective way to get experienced legal counsel that they may otherwise be out of reach. OGCs provide a range of services to meet evolving business needs, from corporate governance and compliance to employment and contracts. 

For over 25 years, SVTech has provided in-house and outside general counsel services to a wide range of Bay Area technology companies. Past clients include Accela, Amazon (Alexa), Shutterfly, and other public and private companies ranging in size from under $1 million to over $1 billion in annual revenue. 

Today, we bring that same depth of operational experience to our outside general counsel services. Our clients receive practical, business-focused legal guidance on a flexible, outsourced basis, grounded in real-world company operations. 

We work closely with founders and leadership to address the legal challenges that startups face every day, helping them make critical business decisions with confidence. 

When specialized expertise is required, we also provide access to a network of trusted experts and legal professionals in areas like patent, trademark, and litigation matters. 

Don't let unforeseen legal issues put your company at risk. Contact SVTech today to explore how our outside general counsel services can support your business growth.

**Disclaimer**

The information provided in this blog post is for informational purposes only and does not constitute legal advice. Please consult with a qualified attorney to address your specific legal needs.