If you are a founder or CEO, you know the importance of streamlining processes and maximizing efficiency in order to scale your business. One area that is often overlooked in this pursuit is legal operations. Creating and reviewing a contract can be a time-consuming and costly process, with boilerplate language and clauses expressed in different ways adding unnecessary complexity. But what if there was a solution to revolutionize the way your company approaches contracts and streamline the internal and external legal processes?
Enter Electra Japonas, CEO and Founder at TLB, Co-Founder at oneNDA and Claustack. In a recent conversation with Aishwarya, head of legal at SpeedLegal, Electra discussed the inefficiency of the current process for creating contracts and the need for standardization.
As Electra pointed out, a staggering 90% of all agreements contain boilerplate language and one clause can be expressed in over 147,000 different ways. This is due to law firms charging for a bespoke approach and lawyers treating contracts as works of art. But at what cost? TLB found that reviewing NDAs accounted for 63% of the agreements they looked at, but only made up 7% of their revenue. It's clear that this current system is not sustainable or profitable.
That's where TLB's OneNDA initiative comes in. Launched in response to a LinkedIn post by Electra, OneNDA aims to create a single NDA that organizations can adopt globally, reducing the time and cost associated with creating and reviewing multiple NDAs. The initiative has gained significant attention and support, proving that there is a demand for change in the legal industry.
But OneNDA is just the beginning. Electra's vision for Claustack is to create a platform that combines the best of GitHub and Stack Overflow for law, encouraging more organizations and individuals to drive their own initiatives for standardizing contracts within their industries. The ultimate goal is to create a library of standardized clauses that can be used in contracts, streamlining the process and making it more efficient for all parties involved.
As a founder, the benefits of this approach are clear. By streamlining legal operations and standardizing contracts, you can save time and resources, allowing you to focus on growing your business rather than getting bogged down in legal minutia. In addition, standardizing contracts can reduce the risk of disputes and legal issues, as well as improve relationships with clients and partners.
But the benefits of standardizing contracts go beyond just the bottom line. It can also have a positive impact on society as a whole. By reducing the cost and time associated with contract creation and review, standardization can make legal services more accessible for small businesses and startups, helping to level the playing field and encourage innovation.
By embracing new technologies like SpeedLegal and OneNDA, you can streamline your legal process and focus on growing your business. SpeedLegal's platform not only provides access to faster contract reviews and risk analysis using AI but also gives you contract management tools to make the process even more efficient.
We cover these topics in depth in our podcast. Tune in here to watch!