Last week in Chicago, Above the Law hosted the second annual Evolve Law Summit, a legal technology conference dedicated to investors and strategic partners. There is no question that activity in the legal technology and innovation space is accelerating. In just the first four months of 2018, Internet Brands acquired Avvo; Consillio and Advanced Discovery merged; the Global Legal Hackathon launched in 40 cities; five law schools hosted innovation events; Fastcase acquired Docket Alarm; Logikcull raised $25 million.
For those that could not attend, here are 10 lessons from the Evolve Law Summit for legal technology entrepreneurs, innovators, investors, and consumers.
1. What is the addressable market in #legaltech? Of the $2.9 billion market, business-to-business legal services top $2 billion.
2. There are not many legal tech companies that could reach unicorn level.
3. Think “glass half-full” when hiring engineers for legal tech jobs. They might like building cool products, and begging and pleading for adoption.
4. The glass really is half-full. We might not have unicorns, IPOs, or nice things, but the more buyers of legal technology companies, the higher the prices. If you can wait 15-18 years.
But before you cold-call the AmLaw100 list, be aware of the growth of alternatives to direct investment:
5. If you build it, they will come you better be able to market it and sell it.
6. Strategic partners–with their access to customers and resources –are a compelling but complex alternative to venture capital. Startups must identify and articulate adjacencies and value exchange.
7. Alma Asay of Allegory/Integreon recommends startups focus on strategic partnerships first, then funding.
But only if the strategic partner will maximize opportunities for the startup:
8. Bryan Cave Leighton Paisner actively partners with legal technology companies that truly understand attorneys and can speak their language:
9. Working with one of the biggest legal technology companies in the world is possible for companies at all stages of growth:
10. And finally, advice for everyone, always.
