LegalTech

Promises increased productivity, cost-efficiency, and competitiveness in the legal industry

Overview

LegalTech, sometimes referred to as LawTech, is the application of technology and software to support the legal industry and provide legal services. It seeks to simplify, optimize, and automate various legal processes and operations. Some of the activities it supports include law practice management, contract management, document management, electronic discovery (e-discovery), and various legal needs of families.

Users of LegalTech can be broadly categorized as law firms and individual attorneys (B2B), small and medium-sized businesses and in-house legal departments of larger enterprises (B2B), alternative legal service providers (ALSPs; B2B), and individuals and families (B2C). B2B tools support those entities with their legal workflow, while B2C tools include commoditized legal solutions that assist individuals and families with interpreting the law and accessing the justice system (B2C tools are also referred to as DIY and retail law tools). LegalTech tools can also be distinguished based on whether they support specific legal tasks, provide supporting processes, or form a technological infrastructure for legal workflows.

* Note: Additional sections (such as market sizing and incumbents) can be provided on request.

Market Mapping


Incumbents
Expansion
Go-to-Market
Minimum Viable Product
Ideation
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GenAI-based LegalTech
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Marketplace/network
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Document automation and notarization tools
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Practice management
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Legal research, AI systems, and analytics
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E-discovery
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Compliance and IP/trademark management
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Contract management
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Online legal services and litigation finance
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The Disruptors


Funding History

Notable Investors


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Funding data are powered by Crunchbase
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Overview

LegalTech has been gaining traction for some years now, and the case for its adoption is strong. In fact, a venture capital firm reported that the LegalTech market accounted for 20% of the legal industry in 2018. The pandemic, however, led to legal professionals working remotely and court proceedings moving online, and this catapulted the legal system’s adoption of technology. Consequently, the global LegalTech market, which was valued at USD 17.3 billion in 2019, with North America accounting for just under half, is expected to expand at a CAGR of 6.4% to reach USD 25.2 billion by 2025.

What is LegalTech?

LegalTech, sometimes referred to as LawTech, is the application of technology and software to support the legal industry and provide legal services. It seeks to simplify, optimize, and automate various legal processes and operations. Some of the activities it supports include law practice management, contract management, document management, electronic discovery (e-discovery), and various legal needs of families. 
Users of LegalTech can be broadly categorized as law firms and individual attorneys (B2B), small and medium-sized businesses and in-house legal departments of larger enterprises (B2B), alternative legal service providers* (ALSPs; B2B), and individuals and families (B2C). B2B tools support those entities with their legal workflow, while B2C tools include commoditized legal solutions that assist individuals and families with interpreting the law and accessing the justice system (B2C tools are also referred to as DIY and retail law tools). LegalTech tools can also be distinguished based on whether they support specific legal tasks, provide supporting processes, or form a technological infrastructure for legal workflows.
* ALSPs provide legal services without being law firms and include legal process outsourcers and the Big Four (Deloitte, EY, KPMG, and PwC).
The LegalTech ecosystem has expanded over time to include several product categories
LegalTech ecosystem
Source: Compiled by SPEEDA Edge
Statista reports that 76% of law firm practitioners surveyed in 2020 said that their law firm used LegalTech tools for legal research, followed by records management (64%) and e-discovery (62%). Meanwhile, 56% of in-house legal departments said they used LegalTech tools for contract management.
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