Swedish startup pocket law — a software-as-a-service legal technology platform for contract automation that primarily targets small and medium-sized businesses — received €10 million (~$11 million) in Series A funding led by European venture capital firm Atomico to spur expansion in Europe. Ben Blum, a partner at a venture capital firm, is on the board of directors as part of the investment. As a result of the round, the total amount of funds raised by the startup since its foundation in 2018 amounted to 14 million euros.
PocketLaw launched its product in March 2020, focused on contract creation, e-signing and management tools for SMEs across all business areas, touting a service that SMEs do not require in-house legal experience to use.
The company has attracted close to 6,000 customers to date, including startups such as Voi, Kry/Livi, Juni and Estrid and consumer SMEs such as Punchy Drinks, as well as some larger ventures such as Babybjorn and Schibsted. list of his clients.
Its biggest markets at the moment are its home market in Sweden and the UK, but the company has told us that it expects sales to increase in Germany and Norway later this year.
Serie A funding will continue to expand its operations across Europe, including by expanding its team in legal, technical and operational areas to support the growth sprint, he added.
“PocketLaw can be used by any business owner and any stakeholder in the world, regardless of size, financial ability or legal experience. However, our top priority to date has been to support all SMEs across all business lines for obvious reasons,” CEO, co-founder Kira Unger tells TechCrunch. “This is a huge market with many companies that need support on a daily basis, and today most of these businesses operate alone, without strong financial means and in-house experience to manage legal issues on their own.”
In recent years, it’s hard not to notice the growing number of legal tech startups offering technology to simplify and streamline contract creation and management for their clients. When asked about the competitive landscape, PocketLaw says it competes with companies such as Book of treaties, Sponsored by Union Square Ventures Juro and Index Ventures Seledgali.
Growth in this category is driven by rising demand: Garner predicts business budgets for legal technology will triple by 2025. previously reported — when we also noted that 2021 was a record year for this category, with $1.4 billion in venture capital investments in the first half of the year, according to CrunchBase Data.
Given that growing demand also means more competition, we asked PocketLaw how it differentiates its offering from other startups that are also chasing the SMB long tail.
“PocketLaw is the first contract creation and management platform that truly empowers business stakeholders to manage legal work with confidence. Unlike KLM [contract lifecycle management] systems, PocketLaw also offers proprietary content in the form of hundreds of templates and jurisdiction-specific guides,” suggests Unger. “In this way, our users can get started from day one without consulting a law firm or their own legal team, spending a huge amount of time creating and automating templates, as well as updating them to make sure everything meets the requirements. “.
“We believe that anything you do more than once should be automated. Digital first and human touch as needed,” she adds. “Our clients can easily contact one of our partner law firms for personalized legal advice when needed.”
Unger also notes the growing complexity of the regulatory environment as it fuels businesses’ investment in legal services “just to survive,” as she puts it, referring to statistics that tech companies alone spend 1% of their revenue on legal services.
“However, much of the day-to-day legal work consists of simple, repetitive tasks, and given the cost of huge in-house legal teams, adding more people to the problem is not a solution. By providing automated solutions along with high-quality templates and other content developed by lawyers, PocketLaw helps every team in the company (both non-legal and legal entities) efficiently and easily manage legal issues,” she says.
PocketLaw estimates that its clients save “up to fourteen business weeks and up to $200,000 in legal fees per year” by using its platform, which supports features such as legal discovery, contract creation, enforcement and storage, and touts time savings. by 80% compared to traditional legal services.
Commenting on the Series A in a statement, Atomico’s Bloom said, “For the first time, we’re seeing a tool truly designed with business owners in mind, giving them access to everything they need in one place, in the world. where most teams are still forced to buy multiple fragmented solutions, work in isolation, or pay high legal fees to outside experts.
“Kira and Olga created a wonderful team in pocket lawusing world-class commercial, legal and technical expertise from Slack, LinkedIn, Google, Zalando, KRY, Spotify, Acast, Mannheimer Swartling and Hogan Lovells. All of them are based on the belief that businesses can alleviate a huge burden by making day-to-day legal assistance more intuitive and efficient, reducing costs, risks and lost time in the process.”
Series A also includes support from a number of founders and operators, including Personio co-founder Hanno Renner and COO Jonas Rieke; Pitch founder Christian Reber; Pleo co-founder Jeppe Rindom; Gloria Bauerlein and dbt Labs board member and former Gainsight COO Allison Pickens. Existing PocketLaw investors also participated in the round, including Kristina Stenbeck of Kinnevik and Suzanne Campbell.
Credit: techcrunch.com /