The coronavirus pandemic has hastened the digitization of practically every industry, including the traditionally old-school realm of law. To improve efficiency and minimize costs, legal businesses are demanding more innovation.
As more organizations strive to automate areas of their businesses and cut expenses, venture capitalists’ interest in legal tech has risen. According to Crunchbase data, legal tech startups have already received more than $1 billion in venture capital investments this calendar year. That figure surpasses the $510 million invested last year and the $989 million invested in 2019. According to industry analysts, the increased investment is a result of the COVID-19 pandemic’s challenges, as well as a slow but steady shift in the legal world to accept cloud and other technologies that are aiming to bring the sector into the twenty-first century.
Furthermore, more law firms are embracing tech solutions to improve efficiency and productivity. While some firms are investing in in-house technology, others have realized that their best strategy is to focus on their most valuable asset: their legal expertise. Recognizing the need to focus on providing legal advice while also improving their technological capabilities, law firms are partnering with legal tech startups to get an advantage over their competition. There’s also a business argument for digital adoption: innovative businesses outperform their older-school counterparts in terms of performance, revenue, and client relations.
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