Gradually, certain aspects of the law are going to be done better by software companies than law firms. And that applies particularly to contracts. SeedLegals..
With AI and machine learning breathing down the neck of the vast quantities of dull contract checking, which currently goes on in many law firms, it’s no wonder startups are training their guns on this sector.
Legaltech is, naturally, driving down the cost of legal work and the new wave of these startups range from the “Uber of Lawyers” (Lexoo, Linkilaw, Lawbite) that create a lawyer marketplace to AI-driven services (KIRA, Luminance, ThoughtRiver) that improve efficiencies inside law firms.
Gradually, certain aspects of the law are going to be done better by software companies than law firms. And that applies particularly to contracts.
SeedLegals claims to be the first legal automation platform to fully manage startup funding rounds. The idea s that companies and investors can build all the docs to negotiate and close a funding round online, with lawyers being optional (they say).
Obviously the aim is to shrink funding rounds from months to a matter of days as a result.
Using this process, in theory investors could be added dynamically in a sort of Continuous Funding model and no longer need to be constrained to 12-18 month events. That would be investment being deployed faster, with more time and capital for founders and investors to concentrate on building their businesses.
Currently lawyers create custom documents for each transaction. That means 18 weeks average to complete a funding round, with legal fees starting at £3,000 for a simple seed round to £20,000 and up for each side for later stage rounds.
SeedLegals says it can beat that, allowing a startup to get to a signed Term Sheet for just £99 and complete a funding round for £1,500, with expert assistance each step of the way.
