Legal data has been very much in the discussions of the tech industry insiders and also the investors. Recently, according to the Bloomberg law, there has been significant growth in the investment in legal data by silicon valley. It is said that Silicon valley betting big on legal tech and is showing no signs of slowing down since 2018.
Silicon Valley investment in legal tech has grown from 1.7 billion in the year 2018. Moreover, legal tech is of great help not only to big companies but also to solo practitioners and helps them in anticipating conflicts, if any, case management, investor optimism and other things.
Why is Silicon Valley Betting Big?
Another thing to notice about silicon valley betting big on other legal tech startups and companies is the lucrative options that open once the company invests in legal tech. The most important feature in legal tech is the e-discovery software which is ideal for finding relevant information and therefore has significant potential in the tech market too.
Also, the fact that Silicon Valley prefers the untapped market meaning its consumers look forward to the DIY forms. Moreover, legal tech software is specifically aimed at lawyers, apps, online services so as to take easy advantage of the legal consumer market.
So, basically, a legal tech market pressurizes the law firms to be cost-effective and efficient in their approach. We all know that silicon valley is not leaving any room for companies that are either budding or came to the tech platform just a few days back.
Legal Tech Trends to Watch
Since 2020, there have been different legal trends in the tech market that we can see every day. Here are a few of them that also played a role in Silicon valley betting big.
1. The Rise in the Virtual Legal Assistants
The rise of legal assistants is ever increasing and it has been predicted that by the year 2023 the field of virtual assistants will increase by 25 per cent. In order to improve efficiency, it is extremely important for the legal departments to automate wherever it is possible.
2. Filling Up of the Legal Technology Expertise Gap
Another prediction that goes is regarding the increase in legal technology expertise which is estimated to increase by 33 per cent in the year 2023. It is becoming quite essential for all firms to have a dedicated team of legal experts who hold a good knowledge of both legal service and technology.
3. Third-Party Risk Management
Another important factor is the increase in third-party risk management by the organizations as the risk that third parties entail increases with the increase in the business. This kind of risk is fragmented in compliance, legal, privacy, supply chain, procurement, finance, IT and many other sectors.
4. Investment in Privacy
Privacy regulations like GDPR and CCPA have created many subject site requests or SSRs for its clients. It is estimated that the increase in the investment in privacy will see the highest increase in the future.
Silicon Valley’s Biggest Investors
Silicon Valley is built on the world’s biggest investments from different individuals and firms. Even though the list runs long, here are Silicon Valley’s biggest investors.
- YCombinator (seed stage)
- 500 startups
- Angelpad
- Accel
- Andreessen Horowitz
- Sequoia
- NEA
- Greylock partners
- Battery ventures
- Index ventures
- Canaan partners
- Draper Fisher Jurvetson (DFJ)
- Spark Capital
- Mayfield Fund
- Blue Run Ventures
These were the top 15 Silicon’s Valley biggest investors.
Why is Silicon Valley Betting Big on India?
The demand for access to the internet in India is way more than the demand that exists in the US or China. Therefore, it is inevitable that Silicon Valley will turn to India to attract potential investors and tech companies here.
The population strength also naturally plays a major role as it increases the consumership if the demand is high. Therefore, this is one of the reasons why silicon valley is betting big on India. Wherever the consumer is alive and kicking, it becomes better for the organization for increased investment opportunities. So naturally, it is a mistake to bet against Silicon Valley seeing the present circumstances.
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