It has long been known that the legal sector is not as quick to adopt technology as other sectors.
As a result, many legal technology startups have emerged that want to not only help lawyers, but also automate some of the processes that get bogged down in pen and paper. Here we take a look at two recently funded companies, JustPoint and ADR New Era, to see their perspectives.
JustPoint founder and CEO Victor Bornstein told gaming-updates that his company is using artificial intelligence to build the capacity of both potential plaintiffs and personal injury attorneys. He currently works with over 1,000 law firms.
Personal injury lawyers rely heavily on advertising and easy-to-remember 800 numbers to attract clients, but JustPoint believes data is the best tool.
And here’s why: A Boulder, Colorado-based firm collected over 300,000 historical claims and used a data mining model to contact a law firm to provide an assessment that the firm considers in cases like sexual assault, medical malpractice, and so on. How good is it to win? and product quality responsibility.
In addition, the other party provides the company with information about whether a particular lawsuit is worth the law firm’s time, especially because of the time it takes to study the case and the amount of time companies often start making money. expert witness. JustPoint also uses medical knowledge to process data and train models.
“Lawyers have an incentive,” Bornstein said. “The lawsuit could bring in two million dollars, but if they are settled quickly, it will save a lot of effort, even if they receive very little. We looked at how we can make claims more efficient so that lawyers can review claims from start to finish rather than settle them.”
The company recently raised $6.9 million in a seed expansion led by Divergent Capital and Charge Ventures. Additional investment came from Crossbeam Venture Partners, Honeystone Ventures, Interplay.VC, Weekend Fund, Turing co-founder Vijay Krishnan, Mainstreet co-founder Jackson Moses, and Stoxx founder Ali Moise. Thus, the total amount reaches 7.9 million dollars.
JustPoint makes money when lawyers win their cases, which Bornstein says is an incentive for the company’s lawyers to file lawsuits over time.
“We need to work hard to confirm the claims,” he said. “That’s why we’re seeing a resurgence in legal technology. Few companies are interested in using technology, but they let us do the work for them. From our perspective, in 10 years, the legal tech space will flourish in a way we’ve never seen before.”
new era adr
In terms of dispute resolution, the New Era ADR, launched in 2021, claims over $250 billion in the dispute resolution and dispute resolution industry.
Co-founder Rich Lee explained that it often takes 18 to 24 months and hundreds of thousands of dollars to resolve legal disputes. New Era creates a digital and virtual tool that reduces the time and cost of dispute resolution by up to 90%. The company points out the risks so that the law firm can cut down on unnecessary litigation.
“We’re lowering the temperature, reducing the bitterness, and repealing the storytelling law,” Li said. “The court system and the arbitration system don’t allow the figure, so we rewrote them.”
New Era manages the admission of all cases, payments, scheduling and facilitates virtual meetings with arbitrators so that clients can receive a binding decision within 60 days.
The Chicago-based company recently raised $4.6 million in seed funding led by Nextview Ventures with participation from Jump Capital. The company’s original former investors, Motivational Ventures and Alumni Ventures, also took part in the round, as well as a group of individual investors including David Cult, Sean Chow, Pete Caedens and Lon Chow. This latest round gives New Era a total of $6.3 million in funding.
New Era charges a flat fee per case and has been named the dispute resolution platform for over 50 million contracts in less than a year. So far, the company has already surpassed 2021 revenue in 2022. Lee said the goal is to triple that next year.
Ongoing investment in legal technology
JustPoint and New Era are friends in raising capital to bring the legal industry into the digital age, many of which are also using AI.
Earlier this month, Xero Systems raised $12 million in a Series A for its software, which automates the manual workflows that law firms perform every day. In February, X Part, a SaaS startup that uses AI to predict the outcome of litigations, raised $7.5 million in Series A funding. In addition, contract platform Common Paper raised $4.5 million in seed funding.
“Enthusiasm for legal tech has been on the rise for some time,” Jack Hutto, director of legal and regulatory consulting at Gartner, told gaming-updates. “Corporate law spending has increased by 50% and we expect the budget to triple by 2025.”
He cited a September report from Crunchbase News that showed legal tech venture funding topped $1 billion, a record amount from previous years.
This was not something that Hutto was surprised to say was a testament to all the demands that made the chancellors want to snatch a piece of the pie.
He believes that turnout has risen sharply since it started from a small base. Corporate legal departments spend millions of dollars but don’t use as much technology as one might expect. Jurisprudence has been the most alienated from technology and digital transformation, Huto said, so startups will inevitably follow, although there is still some doubt about how transformative these tools will be.
“PDF invoices don’t give you the insight to make smarter decisions about these expenses,” he said. “A third of departments were using it in 2010, and that figure has risen rapidly over the years, and that number has grown to almost half of the organizations using e-invoicing technology, but you still have to be amazed by the fact. a large, impenetrable market there. ,