Legal tech made numerous advances in 2021 as the still thriving sector saw more activity, Reuters reported on Wednesday (December 29).
Legal Tech encompasses companies that provide a variety of tools and services to law firms, corporate legal departments, and consumers. The sector includes products for eDiscovery, legal cost analysis, lawyer selection, document review and contract management.
LegalZoom.com, CS Disco, and Intapp all had IPOs this year, and several legal tech companies attracted venture capital and private equity investors. Some of their funding rounds ran into the hundreds of millions.
Reuters reported that the three listed companies all address different sectors – LegalZoom works in the area of legal advice for consumers, Intapp in the area of professional services software and CS Disco in the area of eDiscovery.
Meanwhile, Clio and Everlaw each achieved unicorn status with new valuations of over $ 1 billion. There have also been numerous mergers and acquisitions (M&A) in the sector, which analysts believe suggests a sector is on the rise.
Related: APIs solve the law firm’s collection puzzle
Scott Mozarsky, managing director of M&A advisory firm JEGI Clarity, said that there was much more capital in the legal market in 2021 and that investor appeal has increased in recent years.
According to Reuters, some of the additional drivers of this growth could be increased pandemic technology usage, with law firms joining the many different industries and working more online.
“The pandemic has certainly shed light on technical skills that some lawyers would never have proactively sought out,” said Lucy Bassli, founder and head of the consulting firm InnoLaw Group PLLC and former Assistant General Counsel at Microsoft Corp.
In November LegalZoom worked with Square on a new payment product to create better point of sale (POS) payment software for smaller businesses.
LegalZoom customers can now get preferential rates on Square deals that allow smaller businesses to better manage their operations.
Continue reading: Square, LegalZoom team on SMB payment solution
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