Less than two years after launching, Raleigh-based legal tech startup Blue Pencil Box has been acquired by Fisher Phillips, an international labor and employment firm headquartered in Atlanta that has more than 600 attorneys across 41 offices.
In August of 2022, attorney Jonathan Crook launched the startup as a subscription-based knowledge management system for restrictive covenant law. It was a finalist for one of NC IDEA’s $50K SEED grants last spring; we first profiled the startup last April.
Crook will continue developing Blue Pencil Box while also practicing law again as a partner at Fisher Phillips. For him, it was the perfect fit.
“To me the thing that stands out with them [Fisher Phillips] is they have this dedication to innovation that I think aligns with my own philosophy about the practice of law,” he said, “using technology responsibly to improve client service and making better lawyers.”
Crook said conversations with Fisher Phillips began last summer and that the final acquisition decision was reached over a long period of reflection and discussion with trusted members of his life—no “eureka” moment. He had entirely bootstrapped Blue Pencil Box.
An acquisition wasn’t something Crook said he was actively seeking, but both he and Fisher Phillips realized the opportunity they had by bringing his technology to the firm.
To Crook, Fisher Phillips provided an amazing opportunity to spread Blue Pencil Box to its “massive client footprint.”
The firm will be offering Blue Pencil Box as an offering of FP Solutions—a subsidiary of Fisher Phillips that delivers downloadable compliance products, consulting services, online training, and other technologies.
Crook said the technology is used “all the time” in the employee and defections and trade secrets practice group of the firm.
As for Fisher Phillips, the goal is to use Blue Pencil Box’s tech to expand its offerings to its clients, especially in the area of non-competes and other restrictive covenants.
“Employers have a challenging task in staying ahead of the shifting legal landscape to successfully draft, administer, and analyze these critical business protection agreements,” said John Polson, Chairman and Managing Partner of Fisher Phillips. “By acquiring Blue Pencil Box, we can now provide the best available knowledge, tools, and technology to help employers protect their most valuable assets while remaining legally compliant in a difficult regulatory environment.”
[See Fisher Phillips’ full press release here.]
Crook will continue to be responsible for keeping the Blue Pencil Box product up to date while also working directly with clients and giving them advice about the contracts he’s been studying through his work on the startup.
But he’s under no obligation to stay for any specific amount of time.
“I’ve built within my mind this store of information about these cases and these bills and these regulatory updates,” Crook said. “And now I’m in a position to actually use that information to offer people advice.”
Technological systems like Blue Pencil Box, along with generative AI, Crook said, can assist attorneys in providing their clients with the best understanding of their business needs.
Being able to represent his clients to the best of his ability is Crook’s “moral grounding.”
Increasing efficiency is a major way to benefit client service, which Blue Pencil Box delivers in a complex area of law.
“A big part of the challenge in this area of law is simply knowing what laws exist and in what states,” Crook said, “and I think Blue Pencil Box does a really great job of putting the client and lawyer on the same page about what the law requires.”
Currently Crook is in the onboarding process for Fisher Phillips.
Before working on Blue Pencil full-time Crook worked for Raleigh-based law firm Jackson Lewis P.C. and said coming back to a large firm is “like riding a bike.”
The most important part of his introduction and onboarding to his new firm? Getting to know the amazing people around him.
“As a solo entrepreneur things can get a bit lonely,” Crook said. He’s enjoying being part of a team again.