Two months plus $200 million equals one sea change.
That’s the math for a notable shift in legal tech. In the past two months, investors have poured in almost $200 million to legal tech startups.
It hasn’t always been that way. In fact, last year startups were at a 30-year low. So what happened?
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But now come big bucks for firms like Exterro, Seal Software, and Everlaw. They raked in more than $155 million in funding them in May and June.
Add another $42.5 million for Eigen, Tessian, and LawGeex since April, and we’re talking a $200 million quarter of financing.
Exterro, an e-discovery firm, took the lion’s share of the haul. Founded in 2004, it was the first time the privately-held company took outside investment.
E-Discovery Money
The investors put their money primarily in e-discovery and AI. Robert Ambrogi, writing for Above the Law, said it follows a pattern.
“All the companies are focused on the use of AI to streamline legal work and deliver better results,” he said. “And all of the companies are targeting the big firm/big company sector.”
Related Resources:
- Top 3 Almost Certain Legal Tech Predictions for 2018 (FindLaw’s Technologist)
- How Facial Recognition Helped Catch the Gazette Shooter (FindLaw’s Technologist)
- New California Law Seeks to Lead the U.S. in Online Privacy Protection (FindLaw’s Technologist)
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