A Cincinnati law firm that’s worked with some of the region’s top venture-backed companies has launched a new practice group to offer formal full-service legal counsel to startups, entrepreneurs and investors.
Ulmer & Berne’s Venture Law Practice Group officially formed July 1. It’s co-led by Ulmer partners Vance VanDrake III and Zach Bahorik, who are based at the firm’s downtown offices.
VanDrake, a trademark and patent lawyer, has been with Ulmer 10 years, co-founded three companies and is currently an angel investor. Bahorik, who joined the firm in August 2021, has spent a decade working with startups on the corporate transactions side. He ran the investment fund attached to Ocean Accelerator for a six-year stint.
VanDrake said the group fills a key niche in the local market and the Midwest. The launch also comes amid a key inflection point in the ecosystem – 2021 was a record year for venture capital in the city, and medical device startup Standard Bariatrics inked a nine-figure exit last month.
The firm modeled the group after similar offerings found at largely West Coast and East Coast firms. It will target both portfolio companies – at all stages of development – and investor groups under one roof.
“Most early-stage companies need two things: IP and corporate – protecting the assets and getting the governance and fundraising right. But I was frustrated I only really got to see one side of the house,” VanDrake said. “We wanted to join those two things together seamlessly in Cincinnati and built this group of people who love the venture space and specifically want to work with these kinds of clients.”
Since its launch, the group has rapidly expanded to a 10-member team locally and 12 overall, with deep experience in venture tax, corporate selection, fundraising, mergers and acquisitions, data privacy, software transactions, patents, trademarks, copyrights and litigation.
Many in the practice group are current and former angel investors, venture fund managers and startup founders, with a host of diverse backgrounds.
That’s important: Working with startups is a unique challenge. Companies at an early stage often have limited funding available, and “cookie-cutter” legal solutions don’t often work the same as in other businesses.
VanDrake said offering flexible billing arrangements, like project-based billing when it makes sense, is key. “We can even tranche a lot of legal needs and strategies just like you tranche out funding rounds,” he said. The group aims to look at everything through the lens of a future investor.
“I've seen startups overspend on this stuff, and the company sinks without any cash, but on the flip side, we've also seen the horror stories, where if they had just spent another $100, everything would be fine,” he said. “It’s not just the thousands it costs to fix (legal errors), it's that when they get an investor or an acquisition partner to the table, the deal is often DOA.”
Currently, the new Ulmer group represents companies all over the country – and the globe. The firm has seen a migration of clients from the East and West Coast “who want the same quality of lawyers, but don't necessarily want to pay East and West Coast (prices),” VanDrake said.
Still, its footprint is predominately in the Midwest, or about 85% of its clientele.
Bahorik said the Cincinnati’s startup ecosystem, in particular, is the “healthiest it’s ever been.”
“Success stories (like Standard Bariatrics) are re-energizing the market,” Bahorik said. “We work with a bunch of (venture) funds, and most are raising right now. We've seen as much activity over the last three or four years as we've seen ever. We’re trying to find that sweet spot for a founder that gets them off on the right foot, so when that investor comes in, they’re going to feel comfortable giving you their money.”
Ulmer & Berne, founded in 1908 and headquartered in Cleveland, is Cincinnati’s eight-largest law firm. It has 166 total attorneys, with additional offices in Chicago, Columbus, New York, Washington, D.C., and Boca Raton, Fla.
To date, Ulmer said its attorneys have worked with more than 1,000 startup companies. The firm has helped create more than $1 billion of value for entrepreneurs by solidifying IP portfolios; has served as counsel for venture funds and investor groups that have raised and deployed more than $300 million in capital; and fundraised with companies that have brought in more than $500 million.
