We analyse, from a corporate finance point of view, the investments made in the Legal Tech sector. In this case we will analyse the investment made in LexGoApp.
Since 2014 there has been talk of legal technology, better known as Legal Tech, a way in which technology changes the business model in the field of law, laws and legal documents.
This new model of acquiring case law offers a number of advantages from the optimisation of data through the use of BigData to improve the work processes of lawyers and law firms to the reduction of time and costs, such as the drafting of standard contracts or the review of case law by the applicant and the lawyer.
In the United States, this sector is already booming, registering in 2017 an investment of $ 233 million in companies in 61 deals, surpassing 2016's $ 224 million investment in more than 79 deals. In Spain, legaltech is already seen as a phenomenon that will introduce legal and business services that will end up diminishing or eliminating the use of a lawyer in a simple procedure. Likewise, there are currently around 120 legal tech projects divided into 5 business areas.
The law firm Cuatrecasas knows that it has to adapt to this system and has begun to invest in this sector by launching an investment vehicle. This is not Cuatrecasas' first foray into this field. The law firm took its first step into legaltech in June 2016 when it launched an accelerator for companies in this field - known as Cuatrecasas Acelera - with the support of Open Future, Telefónica's accelerator, and StepOne Ventures, from Barrabés Group. The call for applications for this third edition begins on 5 June and will remain open until 16 July.
LexGoApp opens a funding round with the goal of raising €100,000. Likewise, the launch of new products and new business lines that will try to revolutionise the sector.
The minimum investment in this crowdfunding campaign is €1,000, and this is the last opportunity to become a partner in the company. So far, 78% of the funding has already been raised, and this round will be used as a bridge round in order to raise a further 400,000 by the end of 2018.
LexGoApp is a legal marketplace that connects users looking for legal services with lawyers looking for clients quickly and easily. To date, the legaltech's achievements are more than remarkable and they already have 1,700 registered lawyers, more than 5,000 downloads of the App, more than 3,000 quote requests and a monthly growth of 25%.
The method of use of the platform is simple: the user makes the query, the LexGoApp team validates it and makes it available to lawyers. If the lawyer is interested, he or she buys the query and contacts the user. In addition, lawyers can also subscribe to professional and monthly plans.