Legal Tech Startups in 2014

Legal-Startup-Data

The legal tech space has become explosive. Investors are pouring millions into legal innovation as founders excitedly plan to disrupt the legal space. Some attorneys are thrilled about the thought of new technology to better their practice while others are skeptical about the need for disruption — or even using the term disruption.

In any case, legal startups are big and getting bigger.

NextChapter Old 300x300 Legal Tech Startups in 2014

How Big is the Legal Startup Market?

According to AngelList, there are roughly 350 companies in the U.S. tagged in legal. If you break those down to legal startups, there are 101 listed. Josh Kubicki reported that legal startup funding is at an estimated $77 million year to date with the prediction that it will be much higher than the $458 million invested in 2013.

How Many Will Succeed?

David Perla, legal tech entrepreneur and investor, explains that, realistically, “a significant majority will fail.” When they do, people will say it is “evidence that the legal market is stuck in the dark ages, that it’s not ripe for disruption, that there’s no innovative … but the vast majority of startups in every industry do fail.” Watch the rest of this fascinating interview with Perla by Lee Pacchia:

Before we look at the startups moving to change the legal space, let’s talk about the legal startup recipe.

What is a Startup?

Paul Graham says, “A startup is a business designed to scale dramatically.” His essay “Startup = Growth” explains that a startup does not have to have venture funding or an exit to be considered a startup. The only essential thing is growth.

Eric Ries explains, “A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.”

While Steve Blank, Silicon Valley entrepreneur and Lecturer of Entrepreneurship at Stanford and Berkley among other institutions, describes a startup as such: “A startup is an organization formed to search for a repeatable and scalable business model.”

Legal Startup Data 640x1604 Legal Tech Startups in 2014

Next: the 2014 list of legal startups.

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  • Mark

    Great info Janine. I’m going to jump on a few of these that I haven’t seen before. Intake is one particular area that’s ripe for innovation, or just basic automation. Thanks.

    • Lawdingo Nikhil

      Lawdingo now does legal intake now on behalf our member attorneys. On a related note, if other legal startups would like to work with us, we are capable of making our national on-demand network of lawyers available to companies that want to incorporate a “talk to a lawyer” feature in their product, or who want to offer their service to our lawyers at a discount. info@lawdingo.com

      • http://nextchapterbk.com/ Janine Holsinger

        That’s cool Nikhil. After launch, we are also interested in partnering with other legal startups to integrate services that NextChapter doesn’t provide.

  • http://www.legalfuturology.com/ Anna Ronkainen

    I guess TrademarkNow (Helsinki/NYC, 2012, live, http://www.trademarknow.com/ and @TrademarkNow ) should be on your list as well…

  • http://nextchapterbk.com/ Janine Holsinger

    Thanks Anna! Added to the spreadsheet.

  • The StoryTelling BeanCounter

    Great article. Didn’t see ActionStep on the list. Really excited to see legal startups focusing on specific niche areas with the legal industry. Wonder how many are looking to start an ecosystem to integrated with other related online apps in the legal space.

  • Leslie Meagley

    Janine, Great article. Thanks for pulling all the info together. Here’s another one to add to your list. http://www.metajure.com. MetaJure smart document management system.

  • Micah Springut

    Great article. But while Lateral.ly is a legal recruiting startup, we are not for law students. Lateral.ly is for associates at top law firms looking to lateral.

  • http://www.casetrek.com Ivan Rasic

    Thanks Janine for the great list. I believe @LegalTrek too fits the bill :) Best! Ivan

  • http://lawcus.com Harry Singh

    Thank you Janine for the great article! Best Harry @Lawcus

  • Sarah Quirk

    Thanks so much Janine for this article. Great compilation of expert opinion and data. eBrevia (Stamford, CT, 2011, live, http://ebrevia.com) is another startup in the contract analytics space. We’re commercializing machine learning tech from Columbia University.

  • http://www.patdek.com/ Jay Guiliano

    Here you go Janine – in the niche/IP space (Arlington, VA), we’re concentrating on making sense of patents – http://www.patdek.com