In a significant move for the legal tech industry, Sheffield-based company FinLegal has raised £2m from NPIF II – Mercia Equity Finance. This funding is managed by Mercia and forms part of The Northern Powerhouse Investment Fund II (NPIF II), with the addition of Mercia’s own funds.
This new capital elevates FinLegal’s total funding to an impressive £5m. This development heralds a new chapter for FinLegal, aimed at enhancing their innovative platform designed for managing class actions and large-scale claims, already utilised by legal firms across the UK, USA, and Australia.
New Investment Boosts Legal Tech Innovation
Sheffield-based legal tech company FinLegal has successfully secured £2m in funding from NPIF II – Mercia Equity Finance. This investment is managed by Mercia and part of The Northern Powerhouse Investment Fund II (NPIF II), complemented by Mercia’s own funds. The raised capital brings FinLegal’s total funding to £5m to date.
FinLegal’s platform, which is designed for managing class actions and large numbers of similar claims, is already used by legal firms across the UK, USA, and Australia. The platform leverages automation and AI to enable law firms to handle claims more efficiently and cost-effectively. It allows legal teams to manage up to six times more claims, significantly reducing operating costs while improving client care.
Origins of FinLegal
Founded in 2019 by Steven Shinn, FinLegal was born out of Shinn’s interest in news stories about the Post Office group action. Shinn, an IT specialist, saw potential in using automation to streamline the claims process, which often involves managing thousands, if not millions, of claimants.
Since its launch, FinLegal has processed over two million claims. It currently employs 25 staff, including three in its US office, and has more than doubled its annual recurring revenue to £1.8m in the year leading up to April 2024. The platform has also increased its total revenue to nearly £3m.
Utilisation of Funds
The recent £2m funding injection will enable FinLegal to further develop its product to meet a broader audience’s needs.
The company plans to create 26 new jobs, enhancing its business capabilities and expanding its reach in the legal tech market. Shinn believes that the claims market is “ripe” for a platform like FinLegal’s, especially as many claims are handled on a no-win no-fee basis, where managing operating costs is crucial.
International Growth and Market Penetration
Shinn highlighted that their solution not only reduces costs but also automates and improves client care. This makes it feasible to manage claims on a scale that would otherwise be unviable.
The adoption of FinLegal’s platform by leading claims firms has catalysed its international growth. “This investment will enable us to accelerate our international growth,” Shinn stated confidently.
Market Implications and Future Growth
Chris Borrett of Mercia Ventures spoke highly of FinLegal, describing it as a “new breed of AI-enabled LegalTech companies.” FinLegal has rapidly cornered a niche within the mass volume litigation market, driving substantial productivity gains for major global law firms.
According to Borrett, Steven and his team have secured clients in the UK, Australia, and the USA, positioning themselves as significant players in the global litigation platform market. This funding will help them aim for even greater heights.
Employee Expansion and Revenue Growth
FinLegal has consistently grown its workforce to support its expanding operations. The company’s plan to create 26 new jobs is a testament to this growth and its commitment to scaling up.
This strategy aligns with its performance, having more than doubled its annual recurring revenue to £1.8m recently. The company’s total revenue has also seen a significant increase, nearing £3m.
Future Prospects and Strategic Vision
The future looks promising for FinLegal as they continue to innovate and expand. With the latest funding, they are well-positioned to enhance their platform further and meet the evolving needs of the legal industry.
Shinn and his team remain focused on leveraging technology to improve efficiency and client care in the legal sector. The creation of new jobs will also bolster their operational capacity, ensuring they can handle future growth smoothly.
FinLegal’s Strategic Vision
The company is determined to continue its international expansion and improve its product offerings. By leveraging the latest AI and automation technologies, FinLegal aims to remain at the cutting edge of the legal tech industry.
Conclusion
In summary, FinLegal’s recent funding boost marks a significant milestone in their journey, underscoring their growth and potential in revolutionising the legal tech industry. With a clear vision and a strong foundation, FinLegal is set to make significant strides in the global market.
In conclusion, FinLegal’s recent £2m funding boost signifies a pivotal moment in the company’s journey, highlighting its growth and potential to revolutionise the legal tech industry.
With a clear vision and substantial investments, FinLegal is poised to achieve remarkable milestones in the global market. The firm is well-prepared to further enhance its platform and broaden its international presence, ensuring client needs are met efficiently.