Legal technology saw numerous advancements in 2021 as the still burgeoning sector saw increased activity, Reuters reported on Wednesday (December 29).
Legal technology involves companies manufacturing a variety of tools and services for use by law firms, corporate legal departments, and consumers. The industry involves products for eDiscovery, legal expense analysis, attorney selection, document review, and contract management.
LegalZoom.com, CS Disco and Intapp all had initial public offerings (IPOs) this year, and several legal technology companies attracted venture capital and private equity investors. Some of its funding rounds reached the hundreds of millions.
Reuters reported that the three companies that went public all target different industries: LegalZoom works in consumer-oriented legal services, Intapp works in professional services software, and CS Disco works in eDiscovery.
Meanwhile, Clio and Everlaw achieved unicorn status with new valuations of over a billion dollars. There were also numerous mergers and acquisitions (M&A) in the sector, which according to analysts indicates a sector on the rise.
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Scott mozarsky, Managing Director of mergers and acquisitions advisory firm JEGI Clarity, said that in 2021 a much greater amount of capital was registered in the legal market and that the attraction of investors has been gaining in recent years.
According to Reuters, some of the additional factors to this growth could include increased use of technology driven by the pandemic, with law firms joining the many industries doing more work online.
“The pandemic has certainly shed light on technology capabilities that some legal professionals would never have proactively sought out,” said Lucy Bassli, founder and director of consultancy InnoLaw Group PLLC and former deputy general counsel for Microsoft Corp.
In November, LegalZoom partnered with Square on a new payments product, aiming to get better point-of-sale (POS) payment software for smaller businesses.
LegalZoom customers can now get preferential pricing on Square offers, which can allow smaller businesses to better manage their operations.
Read more: Square, the LegalZoom team on the payment solution for SMEs