Investment analysis in the Legal Tech sector. LexGoApp

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BY : Diego GutiérrezJuly Tue, 2018

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.

Legal Tech sector analysis

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 investment analysis

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.

About LexGoApp

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.

Other investments in the Legal Tech sector

Investment analysis in the Legal Tech sector. LexGoApp

Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

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