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Legal Tech is a new growing direction

In today's world, a business owner has to use a variety of third-party services, specialized applications, and assistant programs. According to Explodingtopics, the average company uses about 80 SaaS applications in their work. Of course, it's a bit much, but the research speaks for itself.

One of the categories that is showing rapid growth is Legal Tech. Direct translation can be specified as legal technology.

In Western countries, the customer base of such companies is growing by an average of 35% per year. The market volume is estimated at $30B. The driving force behind this trend is contract management applications, such as Ironclad, and a jack–of-all-trades in legal matters such as LegalZoom.

And plus, AI assistants are growing now.

Notable investment deals last year included Luminance's participation in a $40M round and Robin AI's involvement of $26M

If Legal Tech is considered in a broader sense, encompassing modern solutions that help in any legal process – including filing documents, concluding contracts, creating transactions and verifying compliance with legal requirements – the growth trend in this area will become even more obvious.

For example, Vanta, a data compliance software developer, has a 338% year-on-year increase in the number of customers. Its competitor Drata also saw impressive user base growth of 90% year-on-year. These startups offer complete data management, compliance with ISO standards and security requirements, as well as business process automation. 

The revenue of both companies exceeds $100M year-on-year.

One of the Kazakhstani startups is the startup TrustContract, which allows you to sign contracts online via SMS. In 2024, the startup raised $1M. According to the founders, the company is growing by +50% per month and entering foreign markets. 

These tools are in demand because they help to cope with complicated legal delays, which most entrepreneurs or parties to the transaction do not want to delve deeply into. There is such a need everywhere, and this is an interesting niche for development.

The world's growing business trends, new and promising niches, and funky startups are highlighted on the Funky Business telegram channel – https://t.me/funkybizz . 

The struggle for talent – in the American market, the intensity of competition for professional lawyers is increasing. Companies require the development of innovative and technologically advanced legal services (including SaaS models).

AI is on the rise – a big leap in this trend is being set by AI, although, according to industry experts, its cost will decrease, which will further spur its integration.

Hyperpersonalization – Clients are increasingly demanding legal expertise tailored to their individual needs, thanks to the capabilities of AI.

The rebirth of Blockchain – at the intersection of AI and Web3 technologies, there is a high probability of a resurgence in the popularity of virtual assets.

– Today, the popularity of the legal profession among students remains. But it still remains an expensive choice. Against this background, applications and services that help students manage their credit, find loans with lower rates, or apply for scholarships are becoming relevant.;

– setting up large language models to perform legal tasks. This is a fast-growing subcategory of Legal Tech, where well-known players like LegalZoom earn millions of dollars in revenue. New breakthrough companies, including Doola, attract venture capital

– assistance to lawyers in setting up their own practice for the first time and expanding the scope of Legal Tech in new areas, such as intellectual property rights protection in e-com.

– Legal support for immigrants and digital nomads who are in the process of obtaining documents. 

Another interesting factor is AI insurance. The demand for dispute resolution by artificial intelligence companies is growing rapidly. The widespread adoption of AI in legal technology means that future professional lawyers will be significantly different from current ones.

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