The legal tech startup market is booming, generating $6 billion annually and by some reports projected to skyrocket to $50 billion by 2027.
On top of that, legal tech has also seen $17.1 billion in venture capital funding.
What’s with this crazy hype—AI. Specifically generative AI and its ability to accelerate so many aspects of the legal landscape.
General Counsel are on board well with AI’s incorporation. One recent study found 96% are expecting AI to reduce legal department costs significantly.
Clients are also happy with the advancements. For example, constant access to case files has boosted satisfaction by 30%.
The future of legal innovation is here, and it’s transformative. This post is here to get you familiar with what's happening and maybe even get you to dive into the market.
What is a legal startup?
A legal startup is an innovative company leveraging technology to modernize and improve the legal industry. These startups develop tools and platforms that simplify legal workflows, enhance access to justice, automate routine tasks, and provide data-driven insights.
Through integrating advancements like AI, machine learning, and cloud-based solutions, legal startups address inefficiencies in traditional legal processes. Typical missions of these startups include making legal services more:
accessible
cost-effective
efficient for all parties
How are legal startups redefining the legal landscape?
Whether it’s a startup law firm or a legal tech startup, here are some of the fundamental ways legal startups are reshaping the landscape include:
1. Embracing technology to streamline legal services
Legal tech startups leverage AI and machine learning to transform document review, automate routine tasks like contract drafting and compliance checks, and enable chatbots for seamless client interaction. These advancements reduce costs, improve accuracy, and free legal professionals to focus on complex cases.
2. Making legal services more accessible
Startups are bridging the justice gap with affordable solutions for underserved communities. Digital platforms connect clients with attorneys in real time, while subscription-based legal services provide consistent, budget-friendly access to legal support. These innovations bring a new level of inclusivity to the legal system.
3. Enhancing efficiency in legal workflows
Cloud-based collaboration tools and case management software allow legal teams to work more flexibly and efficiently. With the integration of e-discovery tools and data analytics, firms can make better decisions and streamline their litigation processes, significantly cutting costs and saving time.
4. Enabling alternative dispute resolution (ADR) through digital means
Legaltech startups are driving efficiency in ADR with online platforms for mediation and arbitration. Virtual meeting tools allow parties to resolve disputes from anywhere, while secure systems build trust in these processes. All of which makes digital ADR a viable alternative to traditional litigation.
5. Redefining legal career paths
By blending legal expertise with technology, startups create new roles for lawyers in legal tech companies. Remote-first models allow global practice, while the demand for tech-savvy legal professionals is shaping a workforce skilled in innovation and digital solutions.
10 great legal startups changing the industry
Here are 10 legal startups you’ll definitely want to be watching.
1. Legitify
Year established: 2020
Location: Dublin, Ireland
Funds raised: $1.9 million
Legitify offers a streamlined solution for notarizing documents through a secure and compliant platform. From corporate compliance needs to personal legal documents, users can authenticate and notarize papers quickly with just a few steps.
How they are changing the industry:
Simplifies document notarization with a user-friendly online process
Ensures security and compliance with anti-money laundering regulations
Offers identity verification using advanced tools like Veriff
Provides flexible scheduling with licensed notaries
Bridges the gap between digital accessibility and legal rigor
2. LEGID.app
Year established: 2020
Location: Tallinn, Estonia
Funds raised: $17.6k
Accessing legal advice has never been easier with LEGID.app. This platform allows individuals and businesses to connect with qualified lawyers in real time. Offering a mobile-first approach, LEGID.app is transforming how people seek and manage legal support.
How they are changing the industry:
Provides instant access to legal advice through a user-friendly app
Focuses on transparent pricing and clear communication
Expands legal access to underserved regions
Simplifies legal processes for individuals and small businesses
Leverages technology to modernize traditional legal services
3. EvenUp
Year established: 2019
Location: San Francisco, California, USA
Funds raised: $220 million
Legal professionals benefit from EvenUp’s ability to transform personal injury case management. By leveraging AI, the platform helps lawyers build demand packages that are precise, detailed, and tailored to maximize case value.
How they are changing the industry:
Utilizes AI to automate the creation of demand packages
Helps attorneys achieve higher settlement values with data-driven insights
Saves time on tedious administrative tasks, improving efficiency
Enables law firms to scale operations with streamlined processes
Modernizes personal injury case management with cutting-edge tools
4. Legalbook.io
Year established: 2020
Location: New York, New York, USA
Funds raised: N/A
Legalbook.io uses AI to transform contract review and assessment for legal professionals. The platform delivers faster, more accurate evaluations, enabling law firms, solo practitioners, and corporate teams to save time and reduce costs while maintaining higher compliance standards.
How they are changing the industry:
Automates contract review to save time and enhance accuracy
Offers seamless integration for legal teams of all sizes
Improves compliance with AI-driven insights and recommendations
Reduces costs by optimizing labor-intensive processes
Elevates business efficiency with streamlined legal operations
5. Attorney Share
Year established: 2023
Location: Hermosa Beach, California, USA
Funds raised: N/A
Attorney Share revolutionizes the attorney referral process with its data-driven platform. By integrating with case management systems and leveraging AI, it simplifies how lawyers send, receive, and manage referrals, enabling firms to unlock new revenue streams with ease.
How they are changing the industry:
Automates referral management with real-time case updates
Increases revenue by monetizing inbound and outbound referrals
Offers seamless integration with existing case management software
Provides actionable insights with a centralized referral tracking system
Introduces Waterfall Referrals™ to match cases with the right expertise
6. LegalFly
Year established: 2023
Location: Ghent, Belgium
Funds raised: $17.9 million
Founded by former AI leads at Tinder, LegalFly delivers an AI-powered platform that automates repetitive legal tasks, helping teams save time and cut costs. With a strong focus on privacy, the platform ensures sensitive client data stays secure while enhancing accessibility to high-quality legal services.
How they are changing the industry:
Automates routine tasks, enabling significant cost and efficiency savings
Focuses on privacy by anonymizing data before it reaches LLMs
Reduces reliance on external legal counsel with in-house solutions
Democratizes legal knowledge across organizations
Enhances human efficiency without replacing it
7. Lawrina
Year established: 2020
Location: Hicksville, New York, USA
Funds raised: N/A
Lawrina is a comprehensive legal ecosystem that empowers lawyers and clients with innovative tools and resources. From an extensive legal template library to AI-powered contract drafting, the platform helps legal professionals and individuals navigate the complexities of U.S. law efficiently and effectively.
How they are changing the industry:
Offers an AI-driven tool, Loio, for streamlined contract drafting and review
Provides a searchable directory connecting clients with attorneys across the U.S.
Features a comprehensive library of legal document templates for quick, accurate drafting
Delivers accessible legal guides to simplify complex legal matters
Builds a vibrant ecosystem connecting legal professionals and their clients
8. BenchIQ
Year established: 2023
Location: Toronto, Canada
Funds raised: $2.1 million
BenchIQ provides attorneys with unprecedented insights into judicial behavior, offering AI-driven analytics that reveal patterns and reasoning behind judges' rulings. By analyzing a broader scope of judicial data, the platform equips legal professionals with powerful tools to craft more informed strategies.
How they are changing the industry:
Leverages AI to analyze judicial rulings beyond published opinions
Offers attorneys deeper insights into judicial decision-making patterns
Helps firms craft strategies tailored to specific judges
Enables data-driven legal decision-making for improved case outcomes
Reduces the guesswork in understanding judicial behavior
9. Hivelight
Year established: 2020
Location: Sydney, Australia
Funds raised: N/A
Revolutionizing legal practice management, Hivelight offers cutting-edge systems and tools to help law firms grow and operate more efficiently. Drawing from the founders’ deep industry experience, the platform simplifies complex processes and empowers legal teams to focus on their clients.
How they are changing the industry:
Boosts productivity for law firms with tools that amplify output by up to 400%
Streamlines workflows to reduce errors and enhance case management
Blends engineering and legal expertise for practical, scalable solutions
Enables smaller firms to thrive with innovative, tech-driven processes
Builds secure, reliable tools designed around customer needs
10. Tempello
Year established: 2023
Location: Encinitas, California
Funds raised: $150k
Tempello leverages legal AI to transform how law firms handle time tracking. By reviewing emails and generating precise time entries, this startup legal platform saves administrative hours and ensures no billable activity is missed. Seamlessly integrating with Clio, Tempello enhances efficiency and boosts revenue for legal teams.
How they are changing the industry:
Automates time tracking by generating entries directly from email activity
Ensures comprehensive capture of billable hours, increasing revenue potential
Reduces administrative workloads, saving valuable staff time
Offers seamless integration with Clio for streamlined workflows
3 legal startup business ideas
With the demand rising and money coming in, here are some ideas to throw your hat in the ring.
1. AI-powered dispute resolution optimizer
Problem: Mediation and arbitration processes can be lengthy and inefficient, with limited tools for predicting outcomes or suggesting optimal settlement terms. This leaves parties frustrated and increases legal costs.
Proposed solution: An AI-driven platform that supports faster, more efficient dispute resolution by analyzing case specifics, historical data, and communication dynamics. The platform would guide mediators and legal teams toward fair settlements, helping both parties reach agreements more quickly while reducing costs and improving satisfaction with the resolution process.
2. AI-driven compliance automation for small businesses
Problem: Small and medium-sized businesses often struggle to stay compliant with complex and evolving legal and regulatory requirements, such as GDPR, employment law, or tax compliance. Hiring full-time legal counsel is costly, and missing compliance deadlines can lead to severe penalties.
Proposed solution: A compliance assistant powered by AI that simplifies regulatory adherence for businesses. The platform would streamline compliance tracking, reduce the burden of administrative tasks, and empower businesses to focus on growth instead of legal risks. By providing proactive alerts and user-friendly guidance, this tool would make regulatory compliance more accessible and manageable for organizations without dedicated legal teams.
3. AI-enhanced contract negotiation and risk assessment tool
Problem: Negotiating contracts is often a slow process, with back-and-forth edits that delay deals. Legal teams also struggle to assess and quantify risks in proposed contract terms effectively.
Proposed solution: An AI-enhanced platform that accelerates contract negotiations by identifying key risks, suggesting improvements, and helping teams arrive at favorable terms faster. By reducing delays and improving accuracy, this solution would help organizations save time, cut costs, and build stronger contractual agreements that align with their business goals.
Thinking about starting a legal SaaS startup?
The legal tech market is ripe with opportunity, fueled by the demand for innovation and efficiency in legal services. Whether you’re looking to streamline workflows, enhance accessibility, or redefine how legal professionals operate, the potential for growth is enormous.
Getting in on this market means hitting the ground full steam ahead. That’s where partnering with a highly skilled, high functioning development team is in your best interest. While you deal with everything else needed to get the startup running, they can build your MVP.
At DevSquad, we specialize in helping entrepreneurs bring their SaaS ideas to life. With expert teams, agile development, and a deep understanding of SaaS, we’ll help you build a product your users will love.
Building a SaaS product? Learn more about our SaaS development process.
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