Editor’s Note: Christine Magee is an analyst for CrunchBase.
Venture capitalists may have rested their case for investing in legal startups, according to data from CrunchBase.
Investments in law-related startups declined sharply this year, after peaking last year with over $150 million committed in 57 venture rounds. Aside from large rounds for practice management software provider Clio and legal marketplace Avvo, investors appear to be losing interest in legal tech.
“What we’ve realized is that it’s a blessing in disguise that we were bootstrapped for so long,” says co-founder Jules Miller of legal labor marketplace Hire an Esquire. “The sales cycle for the legal industry is so long – 12 months or more – and investors expect their companies to have more traction in the first 12 to 18 months than we can show.”
As a result, startups targeting law firms have struggled to secure a second round of funding. It seems investors…
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