While valuations of public software-as-a-service businesses have been taking a hammering of late as investors cool the sector amid a wider, post-pandemic tech stock sell-off, SaaS startups still need to raise funding to scale their budding businesses.
Legl is a London-based startup that sells tools to law firms wanting to digitize processes and automate workflows to support a more modern customer experience.
Legl isn't specifying the round's other backers, but the Series B was led by several technology investors, including an existing investor. Backed, First Round Capital, and Samaipata are some of the investors in the business.
The startup says it has grown its customer base from around 100 UK-based law firms to 170+ now, which includes 20 of the Top 200 firms in the country.
The Series B will be used to kick off the international expansion, focusing on markets where the UK client base has offices.
There is a global opportunity for law firms to run their businesses in a more modern, efficient, revenue-driving and client-friendly way. Julia Salasky says that they are working with their client base to expand out to their international offices.
Over the past year, we have built out our vision of a new category in the legal space, by investing in the underlyingCRM that enables law firms not only to digitize previously manual business. We have leaned into our core competencies in risk management, compliance and payments and finance, enabling law firms to undertake activities that touch on their regulated business processes but also improve cashflow and drive better client experience.
With the new funding, we will expand our approach to managing business operations and in particular focus on how law firms can drive faster revenue, better and de-risked financial management and a better client experience. We already enable law firms to manage a large proportion of their client base and payment stack and plan to drive more capabilities for more firms over the coming months.
According to Salasky, Legl has seen 3x revenue growth over the past year and 150% net revenue retention, suggesting that it's proving to be a problem for law firms.
She confirms that the raise was not a down round and that the startup's valuation was not disclosed.
This is a big up round for us. She notes that last year we raised $7 million and this year we have raised $18 million.
She says that law firms don't tend to suffer as much from a broader market cooling as corporates. As we demonstrate increased value to law firms and drive better core business operations, we become more valuable than before.
Julia Salasky is the founder and CEO of Legl.
The category of legal and compliance tech has become more active in recent years. Legl aims to stand apart by offering a moreholistic platform for law firms to power up their ability to serve clients by providing them with a suite of solutions. More of the core legal work is freed up by this.
There is an explosion of investment in contract management and other areas where substantive legal work could be improved. Legl focuses on the business of law, running a complex regulated business that has clients at its heart, and where to date there has been very little in the way of cloud-based technology.
Malcolm Ferguson commented on the Series B in a statement, "We're delighted to continue to support Julia and the team on their mission to free up lawyers and time so they focus on creating value." This funding will improve a law firm's revenues, margins, and experience for their clients.
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