Legal Tech - Report, April 2016

107 Pages·2016·2.32 MB·English

by  Hrishikesh Kulkarni

TRACXN REPORT : LEGAL TECH
April 2016
Tracxn
World’s Largest Start-up Research Platform
2 Legal Tech - Report, April 2016
Contents
Topic Page
Sectors We Track 04
Overview 05
Tracxn BlueBox 15
Company List 20
Team 107
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Illustrative Sectors We Track
ENTERPRISE ENTERPRISE
TECHNOLOGY MOBILE
INFRASTRUCTURE APPLICATIONS
SECURITY SAAS INTERNET OF THINGS MOBILE COMMERCE
STORAGE HR TECH VIRTUAL REALITY MOBILE PAYMENTS
NETWORKING CUSTOMER SERVICE SOFT CONSUMER ROBOTICS MOBILE MARKETING
MOBILITY LEGALTECH WEARABLE TECHNOLOGY MOBILE DEV TOOLS
IT OPS ENTERPRISE COLLABORATION SMART HOMES MOBILE HEALTH
CLOUD INFRASTRUCTURE MARKETING TECH DRONES MOBILE GAMING
API MANAGEMENT PRTECH SMART CARS MOBILE LEARNING
BIGDATA INFRASTRUCTURE BI & ANALYTICS 3D PRINTING MOBILE COMMUNICATION
CONSUMER FINTECH EDUCATION HEALTHCARE
FOOD TECH BITCOIN EDUCATION IT LIFE SCIENCES
SECOND HAND GOODS PAYMENTS SELF LEARNING DIGITAL HEALTH
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Sector Overview
Scope of report
This report covers companies which develops and provides software for Law firms and Corporate Legal Departments.
eDiscovery services which provides software solutions have also been included. The report also covers platform for B2B and
B2C lawyers’ marketplaces. It excludes service providers and consultancy companies. Over $1.4B invested since 2010, with
~ $540M+ invested in 2015-16 YTD. 47 rounds of funding in year 2015. 10 rounds in 2016 YTD. eDiscovery tools and Legal
Document Services (DIY legal document platforms) are the top funded sectors.
• eDiscovery - 40 investments worth ~ $465M
• Legal Document Services - 35 investments worth ~ $345M
Most active funds
• Bessemer Venture Partners (Anaqua, CS Disco, Clio)
• SV Angel (Upcounsel, Judicata)
Notable investments in 2015-16 YTD
• Kcura (eDiscovery – Review & Analytics ) - $125M from Iconiq Capital – March 2, 2015.
• Avvo (Lawyers’ Marketplace – Listing & Booking) - $71.5M from Technology Crossover Ventures, Capital Vulcan and
Coatue – July 28, 2015.
• Lighthouse eDiscovery (eDiscovery – Software & Services ) - $30M from Spire Capital – 5 Feb, 2015.
Note: Only companies with higher total-funding are mentioned among companies funded by the ‘Most active funds‘
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Sector Overview
Notable investments in 2015-16 YTD (Continued)
• Lecorpio (IP Management ) - $15M from M2O Inc. – 28 July, 2015.
• Peppermint Technology (Legal Practice Management) - $11M from Scottish Equity Partners. – 10 Dec, 2015.
• Upcounsel (Lawyers’ Marketplace – Standard Services) - $10M from Metamorphic Ventures, Crosslink Capital,
Homebrew, SV Angel – 28 July, 2015.
• Patsnap ( IP Management) - $10M from Vertex Ventures, Summit Partners – 16 Dec, 2015
• Everlaw (eDiscovery – Review & Analytics) - $8.1M from Andreessen Horowitz, K9 Ventures – 9 Jan, 2016.
• Casetext (Legal Research – Crowdsourcing) - $7M from Box Group, Red Sea ventures, Susa – 3 Feb, 2015.
• Logickull (eDiscovery – Review & Analytics) - $4M from Storm Ventures – 24 March, 2015.
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Highest number of companies were founded in the
year 2015
No. of Companies Founded Vs. No. of Companies Funded
• 53 companies got funded in
2013, the highest in last 6 years.
90 60 • In 2013, some of the notable
investments happened in
53 77 eDiscovery, IP Management and
75 50
Legal Document Services
47
42 sectors.
de 60 59 40 N
d o • Most of the recently founded
nu o .
oF 48 50 C f companies are across the
se mo sectors Lawyers’ Marketplace,
in 45 30 p
a a
p n NLP based Contract creation and
m 24 ei
oC F s Legal Document Services.
fo 30 27 20 nu
.o ed
N d
14
13
15 14 10
0 0
2010 2011 2012 2013 2014 2015
Founded Funded
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Highest funding was in the year 2014
YoY Funding Trends
• 2013 witnessed the highest
number of funding rounds (53)
and highest funding happened in
Notable
$10M $66M $30M $100M $200M $125M
Funding 2014 ($372M).
Rounds
• Some of the notable
$7M $18.5M $15M $45M $37.5M $71.5M
investments in 2014 are :
400 60
56
$372M Legalzoom receiving $200M and
$358M
Avvo receiving $37.5M.
47
) $300M 43
sn 300 45 • 2014 saw much of Seed and
o
illiM Series A funding. Ravellaw ,
N
ni( tnu 200 26 30 R fo .o TreracedievmedarSkenroiews AanfdundiCnSg wDihsicloe
o o
m nu Everplans, Upcounsel and
A d
g s Contract Live received Seed
n
id 14 $110M
n 100 $91M 15 funding.
u
F
$58M 13
0 0
2010 2011 2012 2013 2014 2015
Funding (in $ million) No. of Funding Rounds
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Late stage funding has increased since 2013
Rounds of Funding
• Legal industry is one of the
slowest to use technology and
60
market adoption has surged in
the recent years. Due to which
50 11 both late stage and early stage
investments have increased
across the sectors like Lawyers’
9
40 7 Marketplaces, Legal Document
Services and eDiscovery.
s
d
n
u
o • Some of the notable late stage
R 30
f
o rounds were, Clio- Series C in
.
o
N
2014, LegalZoom- PE round in
45
9
20 2014 and Avvo- Series E in 2015.
38
36
Due to this the number of seed
stage rounds also surged in the
5 3
10 same segments.
17
10
9
0
2010 2011 2012 2013 2014 2015
Early Stage Late Stage
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eDiscovery sector has received the highest overall
funding
Total Funding (in USD million)
• eDiscovery tool providers have
secured the highest total funding
eDiscovery $464.7M
with companies like Kcura,
Catalyst, and Recommind being
Legal Document Services $343.4M
the notable funding rounds.
IP Management $196.0M • SMBs market have the largest
number of players and average
Lawyers' Marketplace $158.4M ticket size of funding rounds
have also increased.
Legal Contract Management $127.5M
• Other notable funding has been
observed in Legal Document
Legal Practice Management $56.5M
Services (LegalZoom), Lawyers’
Marketplace (Avvo) and IP
Legal Research $40.3M
Management (Anaqua).
Online Dispute Resolution $15.1M
Enterprise Legal Management $15.0M
0 100 200 300 400 500
Funding Amount (in Millions)
10 Legal Tech - Report, April 2016