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You are viewing ARCHIVED CONTENT released online between 1 April 2010 and 24 August 2018 or content that has been selectively archived and is no longer active. Content in this archive is NOT UPDATED, and links may not function.Extract from article by Jason Krause and published by ACEDS
Everlaw announced today that it is closing a Series A funding round led by Silicon Valley venture capital firm Andreessen Horowitz. The $8 million investment will help Everlaw build out its own services, but may also be a sign of renewed investment in the legal services industry.
Legal technology companies have taken many paths to profitability. Sadly, most never make it. However, as venture capitalists look for investment opportunities and legal services companies seek to stand out in a crowded market, look for more such investments in the coming year.
The most popular path in the industry has long been bootstrapping, or financing growth through revenues. Legal technology companies are often able to grow this way because unlike software companies that rely on advertising or subscription revenues, legal vendors often have real income from law firm clients.
But as legal technology companies look to differentiate themselves in a competitive landscape, venture financing can be an advantage. “There is an absolute uptick in the pulse rate of acquisitions, the pulse rate of media coverage, and the pulse rate of calls I receive inquiring about vendor technologies in the eDiscovery space,”says Rob Robinson, a consultant and eDiscovery industry blogger at ComplexDiscovery.
Read the original article at: Top VC Firm Invests in Everlaw: A Sign of Things to Come?