LegalTech startups are changing the way legal services are delivered. The sector has attracted over US$7 billion in funding, across more than 900 companies across the globe. Here is a look into 10 of the most valuable legaltech companies in the world, based on factors such as known fundraising valuation, capital raised, revenue, and where applicable, market cap.
1. LegalZoom, the OG of legaltech companies was founded back in 2001, and has raised over US$811 million in venture funding. At the time of writing, the company is preparing for an IPO that values it at US$5 billion.
LegalZoom helps customers create legal documents without having to hire a lawyer. This extends to wills, trusts, business formation, copyright registrations, and trademark applications.
2. Dye & Durham (the only company on the list that actually sounds like a law firm) is a provider of cloud-based software and technology solutions designed to boost efficiency and increase productivity for legal and business professionals. The company offers e-market, an all-in-one bundled solution that automates the process of due diligence, document creation and electronic records filing.
The company is listed on the TSX with a market cap of CA$3.2 billion (US$2.85 billion), as at writing.
3. Clio is a Canada based company that offers law firms a suite of web-based tools to support practice management and client collaboration. It has raised US$386 million in venture funding, and is estimated to have revenues between US$100 million and $500 million.
4. DISCO is a legal technology company that applies artificial intelligence and cloud computing to legal problems to help lawyers and legal teams improve legal outcomes for clients. Corporate legal departments, law firms, and government agencies around the world use DISCO as an e-discovery solution for compliance, disputes, and investigations.
The company has raised US$233 million in the ten or so years since its inception.
5. Ironclad is one of the nation’s top makers of enterprise software for managing contracts. L’Oréal, Staples, Mastercard, and other leading innovators use Ironclad to collaborate and negotiate on contracts, accelerate contracting while maintaining compliance, and turn contracts into critical carriers of operational business intelligence.
The company has raised US$184 million in venture funding , and has revenues between US$10m and US$50 million.
6. Notarize is an on-demand remote electronic notary service that allows anyone to legally notarize a document online. Notarize offers digital identity proofing and authentication services, including a market-leading notary public platform to allow any person or organization to get their documents notarized online, 24/7.
The company has raised US$213 million since being founded in 2015, and has estimated revenues in the US$10m to US$50 million range.
7. Litify provides technology solutions for law firms by providing a trusted intelligent platform for practice management. Its platform allows users to manage various business matters; and Litify Intakes that converts qualified lead and referral sources into clients. It has raised US$58 million since being founded in 2016.
8. Evisort is an AI-powered contract management company founded in 2016 by Harvard Law and MIT researchers to develop artificial intelligence (AI) algorithms to help companies mine contracts for data. Evisort's AI understands meaning and context in legal language, virtually eliminating the need to read contracts. The company has raised US$55.6 million as at the time of writing.
9. Everlaw is a legal technology company that provides a platform for document analysis to law firms, government, and corporations. It is a cloud-based litigation platform for corporate counsels, litigators, and government attorneys that enables teams to discover, reveal, and act on information to drive internal investigations and positively impact the outcome of the litigation.
The company has raised US$96.6 million at the time of writing.
10. Text IQ is an Artificial Intelligence company protecting enterprises from privacy, security, legal, and compliance disasters with a reimagined approach to managing sensitive information. TextIQ’s AI helps Global 2000s and government agencies around the world protect sensitive information with ease and speed, providing the freedom to grow.
The company has raised US$15.6 million.
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Steve Glaveski is the CEO and Co-Founder of Collective Campus which he established to help companies and their employees to create a more meaningful impact in the world in an age of rapid change and increasing uncertainty. Steve also founded Lemonade Stand - a children's entrepreneurship program, author of Wiley book, Employee to Entrepreneur: How to Earn Your Freedom and do Work That Matters, Harvard Business Review contributor, author of the Innovation Manager's Handbook vol 1 and 2, host of the Future Squared podcast, and keynote speaker. He previously founded HOTDESK, an office sharing platform and has worked for the likes of Westpac, Dun & Bradstreet, the Victorian Auditor General's Office, Ernst & Young, KPMG and Macquarie Bank. Follow him at @steveglaveski