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- CLIENT CASE STUDY -

Client Case Study: Revulytics

Outside GC and Revulytics: Supporting a software company’s customer contract volume with skill and efficiency. 

Overview:

Outside GC plays a pivotal role in Revulytics™ market expansion efforts by providing industry expertise on an as-needed basis in the absence of an in-house lawyer.

Background:

Revulytics is a venture-backed SaaS technology company providing cloud-based software analytics solutions and services to software vendors worldwide. It is currently the only company in the world offering both compliance and product usage analytics, enabling customers to generate actionable intelligence on who is using their software and how they are using it.

Specifically, its Revulytics Compliance Intelligence platform is designed to detect, identify and report on unlicensed software use. Since 2010, its software intelligence has supported customer compliance programs generating an astonishing $1.8 billion in new license revenue. The Revulytics Usage Intelligence solution provides vendors with valuable product usage data, guiding them to build better products and bolster their marketing and sales efforts. Usage Intelligence is easily integrated with its customers’ own software products and is the first solution purpose-built for distributed software on Windows, Macintosh, and Linux platforms.

Opportunity:

The fast pace of Revulytics’ growth necessitates access to a legal advisor with substantial SaaS and licensing experience. In 2008, as a venture-backed company in a pre-revenue position, cost management was a top priority of Revulytics’ Founder, President and CEO, Joe Noonan. With only four full-time employees, Joe knew that hiring an in-house lawyer was not feasible, and engaging external counsel for routine, high-volume customer contract work would not be cost-effective.

Joe reached out to Outside GC’s co-founder and managing partner, Jon Levitt, to discuss the firm’s innovative approach to legal services. “Joe was impressed with the firm’s on-demand availability, as well as the significant SaaS experience of its legal team,” explained Kevin Ball, Chief Financial Officer of Revulytics since 2008. “Because many of Outside GC’s attorneys are former tech company executives – with not only legal experience, but also business experience - they have considerable familiarity with the issues Revulytics encounters in its subscription based licensing negotiations.” This expertise, coupled with the firm’s affordable rates, is what led Joe to engage Outside GC to assist with the company’s customer contracts back then; and today, Kevin Ball and his team continue to rely on Outside GC laywer Brian Heller to assist with contract drafting and negotiation and to provide strategic advice on complex licensing issues.

Solution:

The on-demand nature of Outside GC’s legal support has allowed Revulytics to manage its legal needs effectively and efficiently, while staying on budget. Like most growth-stage businesses with no in-house lawyer, Revulytics sought an attorney with both relevant domain expertise and practical business experience to support the company’s steady pipeline of customer contracts. Outside GC was hired because of the significiant practical experience of its attorneys and the firm’s flexible approach.

Outside GC first prepared a series of templated customer contracts for the company. These documents provide a sound starting point from which CFO Kevin Ball and other executives can begin negotiations with new customers, allowing the company to save considerably on legal fees. Revulytics relies on Outside GC attorney Brian Heller in a true “on-demand” capacity, calling on him to provide contract-related counsel as needed, such as to assist with proposed contract modificiations, discuss negotiation strategy, and advise on the company’s overall licensing and intellectual property strategies. Brian’s SaaS licensing expertise and tech company experience, in both business and legal roles, add considerable value to this engagement. Brian is adept at identifying critical issues and can jump into a deal at any stage of negotiation; and most importantly, he helps to close deals quickly in support of Revulytics’ drive to scale the business and increase revenue.

Results:

As a growth-stage SaaS company seeking to expand its market share, but with no in-house legal counsel, Revulytics needed outside legal counsel to support a high volume of customer contracts, and the complex licensing issues that can arise in such arrangements. Revulytics’ longstanding relationship with Outside GC has served the company well, providing on-demand access to an experienced team of technology attorneys, at rates that are considerably less than those charged by traditional law firms. Specifically, Brian Heller brings substantial SaaS experience and a practical business-centric approach to his role, which, when coupled with his familiarity with the company, helps to keep Revulytics’ contract negotiations on track and as frictionless as possible. Sometimes Revulytics works closely and regularly with Outside GC.  Other times, weeks or even months might go by with no legal needs, then a specific question or issue might pop up where they need advice spontaneously, and they don’t have time to get a new counsel up to speed.  CFO Kevin Ball appreciates this truly on demand, as needed access, noting that “even after a few months hiatus, I can reach out to Brian for assistance with issue spotting in a new contract or to discuss strategy.”

 

 

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