British legaltech startup Lexoo has raised $4.4 million in a funding round led by Earlybird, with participation from Forward Partners, general counsel at Zoopla Property Group Ned Staple, and others.
Lexoo is trying to seize the trend of many senior lawyers moving out of large law corporations to work independently or join a boutique firm. At the same time, in-house lawyers are still working under a lot of pressure and look for ways to do more with less in terms of contracting external colleagues.
“The traditional global law firm is a flawed delivery mechanism,” said Daniel van Binsbergen, co-founder and CEO at Lexoo who previously worked as an M&A lawyer at global firm De Brauw Blackstone Westbroek. “The large dominant firms bill by the hour and are incentivised to overcharge. Furthermore, the decision makers are often senior equity partners and so take a very short-term view.”
As a response to the new reality, Lexoo has created what it calls a “data-driven marketplace” where clients can compare and hire lawyers for a fixed fee. Lexoo also uses matching algorithms to minimise the finding and briefing times.
Founded in 2014, the platform currently lists over 800 lawyers across 55 countries who have been engaged by more than 3,000 companies. The list of Lexoo's clients includes Travelodge, eBay, VICE Media, Just Eat, and more.