The Legal Tech Industry is poised to take the world by storm, with over $1 billion in funding this year alone
Is law an antiquated profession founded on precedent and history, with a new industry turning the tables on the frequently hesitant to change the practice, or is it a constantly evolving industry on the verge of making an exponential leap? Legal technology firms have taken the world by storm, raising more than $1 billion in venture capital funding this year alone. These significant investments show that law firms are ready to take the leap and change the way they do business.
Why Legal Technology and Why Now?
Crunchbase News recently examined venture funders’ massive investments in legal tech startups across the country. As previously said, legal tech businesses have had a number of successful funding rounds, with over $1 billion raised from venture investors so far this year. The sum surpasses the $510 million investment made last year and has already surpassed the previous high of $989 million achieved in 2019.
So, what’s behind this surge in legal tech interest? According to industry insiders, the epidemic caused law firms to reconsider their business practices. Law firms are renowned for being slow to adapt to change and resistant to evolve. Despite this, the pandemic forced attorneys to adopt e-filings fairly immediately and devise new methods for delivering retainers, documents, and other items to clients.
Problem-solving
Many of the issues that arose during mandatory shutdowns were overcome because to legal technology. Many law companies have embraced new technology and are not looking back. Legal technology, as stated in the article, can help to speed up or eliminate repetitious tasks.
Data and AI can assist lawyers in communicating with clients more quickly, gaining important insight into cases, and automating time-consuming chores. COVID, it goes without saying, hastened many of the developments that were already underway. Lawyers were already making movements in this area before the pandemic, but the pandemic compelled them to act.
Attorneys of a New Generation (and Clients)
A new generation of attorneys is likewise being tapped by legal tech startups. Attorneys who have recently graduated from law school are technologically sophisticated. They, like their clients, demand immediate responses. They want to be able to submit documents and signatures with a single click of the mouse. This generation understands the value of mobile capabilities and understands that their customers will not accept anything less.
The Legal Future
The massive investment in legal technology demonstrates how much has changed in such a short period of time. After nearly two years of a once-in-a-generation pandemic, most people feel at ease with the idea of working from home. Clients are at ease choosing an attorney online and, in some situations, having few, if any, face-to-face interactions. The future has arrived, and it appears to be promising.
If you’d like to learn more, call Amicus Capital Group right away. We’ve been watching the legal IT business grow and can provide you some more insight into what the next several years may hold. To talk with a knowledgeable case manager, call our office at (877) 926-4287.
