Legl, a SaaS for law firm workflows, hits $18 million – TechCrunch

While valuations of public software-as-a-service companies have been hammered of late as investors cool off in the sector amid a post-pandemic sell-off in tech stocks, SaaS startups still need to raise funds to scale their fledgling businesses. – or, well, they hope to be able to do so on reasonable terms despite these broader market bumps.

Today, London-based Legl, a SaaS startup founded in 2019, sells tools to law firms that want to digitize processes and automate workflows in areas like client onboarding, payments, and compliance to support a more modern client experience. , announces the closing of an $18 million Series B round, just over a year after it raised a $7 million Series A.

Series B was led by a number of tech investors, including existing investor Octopus Ventures (which led its Series A), though Legl does not specify the round’s other backers. Previously disclosed investors in the business include Backed, Samaipata and First Round Capital, in addition to a number of angels.

The startup says it has grown its client base from around 100 UK-based law firms in March 2021 to more than 170 now, which it specifies includes 20 of the country’s top 200 firms.

It will use Series B to start planned international expansion, targeting other markets where its UK customer base has offices and pouring money into product development and recruitment.

“There is a global opportunity for law firms to run their businesses in a more modern, efficient, revenue-generating and client-friendly way. We are working with our client base to begin expanding into their international offices that are located in multiple different geographies,” says founder and CEO, Julia Salasky.

“Over the past year, we have built on our vision of a new category in the legal space, client lifecycle management, by investing in the underlying CRM that enables law firms to not only digitize previously manual business workflows to throughout the customer lifecycle, but also better understand your customer base. We have built on our core competencies in risk management, compliance and payments, and finance, enabling law firms to undertake activities related to their regulated business processes, but also to improve cash flow and drive a better client experience.

“With the new funding, we will expand our workflow-based approach to managing business operations, and in particular focus on how law firms can generate faster revenue, better risk-free financial management and a better experience. the client’s. We already enable law firms to manage a large proportion of their client base and payment stack, and we plan to push more capabilities to more firms in the coming months,” he adds.

Salasky, whose name may also be familiar as a previous founder of the CrowdJustice platform, tells us that Legl has seen three times revenue growth over the past year and 150% net revenue retention, suggesting that his SaaS is proving to be a hit with law firms.

She declines to reveal the startup’s valuation for Series B, but confirms the raise was indeed not one round down.

“This is a great round for us! The last round, last year, we raised $7 million and this is an $18 million round (closed in this new funding climate!), building on the revenue growth and momentum we’ve had,” he says.

Speaking about whether the SaaS startup is feeling any impact from a broader market chill in tech and SaaS stocks, he adds: “Law firms are notoriously countercyclical businesses, so they don’t tend to suffer as much as companies do. traditional businesses in a recession. But overall, what we see is that as we demonstrate greater value to law firms and drive better core business operations, we become more, not less, valuable regardless of market conditions.”

Julia Salasky, CEO and founder of Legl

Legl founder and CEO Julia Salasky (Image credit: Legl)

Legal and compliance technology has been an increasingly active category for startups in recent years. But Salasky suggests that most of the action has been focused on contract management or other specific ‘point solutions’, while Legl aims to differentiate itself by offering a more holistic platform for law firms to enhance their ability to serve clients. customers by providing them with a suite of digital tools that can automate and support their business operations. This frees up in-house expertise to focus on more of the core legal work.

“There is an explosion of investment in contract management and other areas where substantive legal work could be improved. But what we are doing in legal takes a different approach: we focus on the business of law, on running a complex regulated business that has clients at its core, and where to date there has been very little in the way of cloud-based technology ”, he suggests. .

Commenting on Series B in a statement, Octopus Ventures investor Malcolm Ferguson added: “We are delighted to continue to support Julia and the team in their mission to free up lawyers’ time to focus on creating value for their clients. customers. . The company has grown considerably in the last 12 months and is positioning itself to become the go-to solution for law firms looking to modernize and automate their back-office work. Not only does this improve a law firm’s revenue and margins, but it [it] it also means that they can offer a significantly better experience to their customers. We are excited to see what Julia can accomplish with this funding in the years to come.”

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