8+ Opportunities to Capitalize on The Legal Tech Boom

It takes quite a lot of apps to run a enterprise nowadays. In 2023, the typical firm used 80 SaaS apps of their operations… discuss a tech STACK.

One class that’s having a progress spurt: Authorized instruments.

With 35% year-over-year buyer progress and ~$30B in market measurement, authorized tech is dominating the worldwide office. Driving the pattern are contract administration apps like Ironclad, and authorized jack-of-all-trades like LegalZoom.

After which AI entered the chat…

Supply: Google Tendencies, six-month rolling common

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Notable cash strikes this yr embrace Luminance’s $40m spherical and Robin AI’s $26m Sequence B increase.

If we broaden our definition of “authorized tech” to incorporate instruments that assist with any authorized processes — submitting, contracts, enterprise formation, and compliance — the pattern is even clearer.

Vanta, an information compliance software program, had a whopping 338% YoY buyer progress. Its competitor Drata additionally noticed a formidable 90% YoY progress. Each are doing $100m+ in ARR.

These instruments are in demand as a result of they handle the messy authorized shenanigans that the majority enterprise builders aren’t too eager to dive into.

Tapping into this want, there are nonetheless loads of alternatives to construct. Listed here are 3 ways you may method it:

1. Suppose Small

Authorized tech corporations make an enormous chunk of their revenues from enterprise contracts. Good for them.

However small companies and mom-and-pop outlets want authorized steerage, too. The issue? They don’t have an enormous tech funds.  

So hold it easy by unbundling complicated authorized tech into smaller, budget-friendly merchandise:

⭐️ Evaluate web site for authorized apps: Evaluate costs, options, and assist SMB house owners discover essentially the most inexpensive choices. Then you may cost further for entry to Loom video tutorials on the way to get essentially the most outta these instruments, or upsell by connecting entrepreneurs with vetted attorneys and consulting providers.

📑 Themed authorized templates: Create pre-made templates like “tax season bundle,” “solopreneur bundle,” or “licensing bundle.” Each enterprise has distinctive authorized necessities, so put your templates right into a database categorized by business.

💬 Compliance reminders: Design a easy device that sends out textual content reminders for necessary dates and coverage updates, so enterprise house owners received’t miss a beat. Promote it in a cute and pleasant technique to ease the anxiousness round compliance.

2. Give attention to Expertise

Authorized providers jobs are at a near-record excessive, as legislation corporations and companies vie for expertise.

However the extensive adoption of AI in authorized tech implies that future authorized professionals would possibly look very totally different from at this time.

Supply: Reuters

Alternatives to capitalize on this rising want for brand spanking new expertise:

• Extra college students are making use of to legislation faculties in 2024, but it surely stays a pricey path. Present apps or providers to assist legislation college students handle their credit score, discover loans with decrease charges, or apply for scholarships.

• Create bootcamps and certification packages for authorized tech specialists, a job class that grew 200% in demand this yr. Give attention to abilities like modernizing legislation agency operations, compliance, and even fine-tuning massive language fashions to carry out authorized duties.

Supply: Tendencies AI information

3. Discover Different Niches

The LLC formation service market is a fast-growing subcategory in authorized tech, with established gamers like LegalZoom making hundreds of thousands in income, and newer disruptors like Doola attracting recent capital.

However why restrict that expertise to LLCs? You’ll be able to take the “X in a field” thought and apply it to extra area of interest use circumstances, corresponding to:

• Serving to attorneys set up their very own follow for the primary time, and zoom in on newer fields of legislation like IP, hashish, or short-term trip leases;
• Serving to child boomers who have to switch their wealth to offsprings determine taxes;
• Serving to immigrants and digital nomads who’re within the strategy of making use of for visas and/or citizenship in numerous international locations (like GreenCard Hero).

Within the subsequent few years, we’ll see even quicker adoption of authorized tech, and extra variations of it. The house is ripe for innovation, and the ball’s in your courtroom.

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