INDUSTRY SPOTLIGHT

Legal tech

Discover market opportunities and the latest industry trends and understand key challenges to empower your legal tech startup to stay ahead of the curve and thrive in the ever-changing legal landscape.

The future of law is here, and it’s growing fast

The legal industry is undergoing a transformative shift, propelled by the adoption of cutting-edge technologies. Cloud-based solutions, big data analytics, AI, and blockchain are leading the way, driving growth in the legal tech market. The result is a faster, more efficient, and more accessible legal landscape. While the legal industry has historically been slow to adopt new technologies, the emergence of legal tech has accelerated the pace of change, creating new opportunities for innovation and disruption. At Waveup, we’ve had the privilege of working with a range of exciting legal tech startups and legal tech investors alike, helping on assignments that ranged from fundraising to growth opportunities hacking, and M&A scouting. This has given us a unique perspective and understanding of the challenges that exist in the legal tech space, and we’re eager to share our insights with companies and investors alike. Whether you’re looking for advice, guidance, or support, we’re here to help you navigate the modern legal tech landscape with confidence.

10X growth
Over the next 10 years, setting to take centre stage and transforming the way legal services are delivered

 

1/4
Legal tech is going to make up 25%+ of the global legal service market, eventually overtaking the traditional legal practice in the next decades

Driven by unprecedented digitalisation and AI adoption
50%+

Of legal work will be automated and AI-powered by 2030.

3/4

Of legal services are expected to be streamlined and conducted virtually by 2026.

70%

Of consumers would rather use digital legal service instead of a human lawyer.

VENTURE LANDSCAPE

In 2022, legal tech startups raised over $2 billion in funding

 
With the largest deals going to:

  • E-discovery
  • Contract management
  • Legal analytics

Leading legal tech investors we worked with

Write to us to know more

WAVEUP VIEW

The challenges of legal tech startups

Despite the unprecedented growth and transformative potential of the legal tech industry, industry players must remain vigilant of potential risks and challenges in order to succeed in the rapidly-evolving landscape.

Measuring business performance

Legal tech’s rapid evolution and lack of benchmarks make decision-making complex, especially for potential investors. With a wide range of startups vying for attention, it can be difficult to separate the wheat from the chaff and identify the most promising opportunities.

Attracting the right capital

Raising capital can be a daunting challenge. Legal tech startups we work with often have trouble building a compelling investment story, showcasing the right metrics, and crafting a pitch deck and financial model that effectively communicates the value of the company.

Accelerating growth

Companies in the legal tech space need to stay ahead of the curve. While there are a variety of proven go-to-market tactics and growth frameworks available, businesses we work with often struggle to identify the most suitable strategy and answer two main questions – when should we scale and how?

How we can help

Startups
Fundraising materials and legal tech pitch decks

From legal tech startup pitch decks to the financial model and forecasts, we’re helping founders crystallize and structure key business fundamentals and translate them into a compelling investment opportunity to attract investors’ attention.

Investors
Due diligence and portfolio support

We help to evaluate potential investments in legal tech startups, conducting thorough financial and market due diligence, as well as supporting partner funds’ portfolio companies on their new fundraising journeys.

Established companies
Growth hacking & M&A scouting for legal tech businesses

Focused on assisting market players in discovering market opportunities and developing execution strategies to build actionable and scalable blueprints for growth, as well as providing ongoing CFO and commercial growth support.

our SUCCESS CASES

Have a look at our work in legal tech consulting

$20M Series A support for virtual AI-powered legal assistant
Explore other success stories

WHO WE ARE

Unlocking your next stage of growth


Waveup is a leading global advisory empowering companies to fuel growth, attract investments, and secure strategic partnerships.

We turn data into business insights that drive results, helping companies excel in the competitive B2C and B2B spaces across 50+ verticals, discovering and catalizing opportunities for growth.

Our legal tech consulting services

Market intelligence

Fundraising support

Pitch decks

Financial models

Investor research

Growth consulting

Go-to-market strategies

Marketing/sales materials

Design support

Learn more

FAQ

How attractive is the industry to potential legal tech investors?

The legal tech industry is increasingly attractive to investors and venture capitalists due to its potential for innovation, market opportunities, high margins, and predictable revenue streams. It is large and complex, and there are many inefficiencies and pain points that technology can help solve.

How big is the legal tech market and its potential for future legal tech startups?

The legal tech market currently represents 7% of the total legal services market, and it is expected to grow at an annual rate of 8.9%. Over the next few years, various technological options, such as virtual conferences, online case filing, court hearings and client meetings, and document automation, will become increasingly popular in the industry.

If you are a legal tech startup, how easy is it to raise funding today?

While raising funding for a legal tech startup can be challenging, with the right product, team, and market opportunity, it is possible to secure funding from investors who are interested in supporting innovative solutions in the legal industry. Furthermore, there are specific funds and incubators that focus on investing in legal tech startups, they can help legal tech startups to connect with potential investors and gain access to funding.

How long does it take to create a pitch deck and financial model for a legal tech startup?

This varies depending on project complexity, industry, and our current workload. On average, it takes two to three weeks to produce the materials. However, there were cases where it took more than a month and sometimes only three days. The exact time required for your project is discussed individually.

What are the key mistakes legal tech startups make in their pitch decks?

When it comes to legal tech pitch decks, common mistakes often revolve around a lack of clarity in articulating the problem and solution, providing too many technical details, and failing to explain a viable business model.

What are the biggest challenges facing the industry, and how are companies addressing them?

The legal tech industry faces significant challenges due to the complexity of the legal industry and its traditional structures. Regulatory hurdles and ethical standards must be adhered to, and resistance to change among legal professionals can make it challenging for legal tech companies to gain traction. Furthermore, scaling and monetizing legal tech services is difficult due to the need for personalized services and the intricate nature of the legal industry.

How competitive is the legal tech market?

The legal tech industry is highly competitive, with over 2,000 legal tech startups worldwide and the number of new startups growing by 40% in the past five years. Established legal service providers have an advantage due to their access to established client bases, industry expertise, and resources. However, legal tech startups have disrupted the traditional legal market, with an estimated 69% of corporate legal departments now using at least one legal tech solution. To succeed in the legal tech industry, companies must be able to develop products and services that effectively address pain points and challenges in the legal industry and have a strong strategy to stand out among competitors.

What services do you provide for investors looking to invest or already investing in legal tech?

We help to evaluate potential investments, conduct thorough legal tech due diligence, as well as supporting partner funds’ portfolio companies on their new fundraising journeys.

Do you provide legal tech M&A support?

Yes, we can help to do MA& opportunity scouting, as well as support with CIM writing and modelling on buy/sell side transactions.

Do you make intros to legal tech VCs?

We can connect you with some major legal tech VCs if there is a fit around the round size/team/product, etc. Our core competency, however, lies in structuring the investor outreach to secure first meetings at scale with investors interested in the field.

Do you have available data or research to purchase on the legal tech market?

Yes. We can provide tailored research solutions with the latest numbers on the legal technology market size. The legal tech market can have a lot of subsegments with data differing across product portfolios, geographies, business models, etc. Based on the unique requirements, we can work to provide customized research that answers the questions the client is interested in.

Which growth stage of companies have you worked with in the past?

We primarily engage in projects ranging from legal tech Seed to Series B stages of growth. However, we have a proven track record of supporting companies in pre-seed and Series C+ stages, as well as collaborating with established companies and funds.

Have a legal tech project in mind? Talk to us

One of our unique advantages lies in our constant exposure to new & emerging industries and sectors, thus giving us unparalleled expertise in the areas of innovative business models, disruptive technologies, and the latest industry trends.

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