LTUK Ecosystem Tracker

An Exciting Insight into The

Present and Future of Lawtech
LawtechUK LTUK Ecosystem Tracker 02

Contents

01

Foreword 03

02

Executive summary 05

03

What is lawtech? 09

04

Data analysis 16

05

Conclusion 34

06

Appendix 37
LawtechUK LTUK Ecosystem Tracker 03

01 Foreword
LawtechUK LTUK Ecosystem Tracker 04

Foreword

I would like to congratulate LawtechUK the wide-ranging support offered by the UK Government
through GREAT Legal Services, UK Export Finance, and the
on the exciting launch of the LawtechUK
Department for Business and Trade.
Ecosystem Tracker, which captures the 356
I am excited to see the UK lawtech sector continue to develop,
lawtech ventures active in the UK. The tracker particularly in the high-potential areas identified by the
highlights our home-grown talent with 254 of Ecosystem Tracker, such as regional disparity, founder diversity
those being UK-founded, whilst also showing and business-to-consumer lawtech. I encourage all those with
an interest in lawtech to get involved with the programmes and
the continuing attraction of the UK as a
events offered by LawtechUK, so that together we can drive
destination for international businesses. forward a thriving lawtech sector and cement the UK’s position
The UK is a uniquely supportive environment for lawtech as a world-leading lawtech hub.
innovation due to its flexible regulatory framework,
world-class legal services sector, deep technological
Mike Freer MP,
expertise, and entrepreneur-friendly business environment.
Parliamentary Under Secretary of
Alongside LawtechUK, our rich network of innovation
State for the Ministry of Justice
labs, law firms, universities and businesses have all played
an important role in establishing the UK as a globally
recognised leader in lawtech.

This is evidenced by the strong level of international

demand for UK lawtech expertise. I was deeply proud to
witness UK lawtechs showcasing their products in Singapore
last year as part of the GREAT Legal Services campaign.
I urge all lawtechs looking to grow internationally to utilise
LawtechUK LTUK Ecosystem Tracker 05

02 Executive
summary
LawtechUK LTUK Ecosystem Tracker 06

Executive
summary

The United Kingdom is historically a global transformation of the legal sector, which was further
necessitated by the Covid-19 pandemic forcing legal
leader in legal services and the world’s top
services online, accelerating tech adoption and the shift to
international destination for legal disputes. cloud services and systems. As firms and their clients became
The UK’s legal services sector is surpassed in accustomed to engaging online, they started to realise that
lawtech was making them more productive and efficient. For
revenue only by that of the United States. And
example, automating routine tasks – like client onboarding,
despite economic and geopolitical challenges, identity and anti-money laundering checks – speeds up
in 2022 its total revenue increased by 5.6% to services while maintaining their quality and freeing up
£43.7 billion, and it contributed £34 billion to lawyers’ time, enabling them to do more client-facing value-
added work. In corporate and commercial teams, using AI for
the national economy – with 1.6% of UK gross contract analysis and automation helps expedite deals and
value added (GVA) and a trade surplus of £5.7 manage projects; on the disputes side, lawtech applications
billion, according to a report by TheCityUK[1]. speed up trial preparation and eDiscovery, and enable
parties and their lawyers to communicate easily and securely
This is, in no small part, due to the pre-eminence of English law online. Since the pandemic, huge progress has been made
as the governing law of choice for cross-border corporate and towards online courts and conducting other forms of dispute
commercial transactions, i.e. it is the international standard resolution remotely.
for contracts. Furthermore, the UK has always been in the
vanguard of innovation, and has become the global hub for Lawtech is a vibrant sector that is expanding across the
lawtech, driven by a liberalised legal market (since the Legal world’s top law firms, technology businesses and entrepreneurs.
Services Act 2007), a strong technology sector, and a thriving It is also attracting major investment, including from private
lawtech ecosystem, supported by communities like Legal Geek, equity and institutional investors and government initiatives.
and government initiatives, notably LawtechUK. Lawtech is a thriving global market and a positive economic
Lawtech (or legal tech) is the use of technologies that aim force. In 2021, it generated revenues of US$27.6 billion.
to support, supplement or replace traditional methods Lawtech startups represented US$5.4 billion of that, and their
for the delivery of legal services. It underpins the digital contribution is forecast to grow at a compound annual growth

1. https://www.thecityuk.com/media/0didtzlm/legal-excellence-internationally-renowned-uk-legal-services-2023.pdf
LawtechUK LTUK Ecosystem Tracker 07

rate of 3.7%, according to the ONS[2] – at a time when the UK economy. The LawtechUK Ecosystem Tracker, which collects
economy is emerging from recession. Lawtech’s contribution and analyses comprehensive data related to the UK’s lawtech
to the UK economy is already well established, and as 43% of sector provides an up-to-date view of the wider ecosystem that
Europe’s lawtech startups are based in the UK, and UK scaleups can be easily accessed and shared across the ever-growing
are starting to expand internationally and contribute to lawtech community.
UK exports. Lawtech helps to underpin the UK legal sector’s
international strength and boost its competitive advantage. Research Parameters
Demand for lawtech is growing as people realise the The main objectives of the LawtechUK Ecosystem
benefits it brings legal services. In 2021, the annual demand Tracker (LET) are:
for lawtech was valued at £22 billion[3] and investment in • To share data from the mapping of lawtech startups,
UK lawtech is projected to reach £2.2 billion per year by scaleups, and corporate entities.
2026. Lawtech is growing exponentially around the world,
• To develop a taxonomy of lawtech ventures
and the sector now includes startups, scaleups and even
operating within the UK.
a few unicorns. It is important for the UK to stay in the
vanguard of lawtech innovation and ensure that its thriving • To create an accessible, one-stop-shop for potential
startup ecosystem continues to include the best lawtech buyers of lawtech.
entrepreneurs and attract the leading lights of the global
• To identify growth opportunities, with a focus on
investment community. LawtechUK was founded for precisely
market gaps and regional trends.
that purpose, but as Lord Kelvin (who, fittingly, invented
the second law of thermodynamics) famously said: “If you • To spotlight key issues within the lawtech sector,
can’t measure it, you can’t improve it,” and therein lies the such as unmet need, regulatory challenges, diversity
rationale for the LawtechUK Ecosystem Tracker. among founders, and global competitiveness.

In this report, we make a distinction between UK-founded

The LawtechUK Ecosystem Tracker lawtech companies and non-UK-founded companies
LawtechUK is a Ministry of Justice funded initiative established active in the UK. Together, both categories comprise the
in 2019 to help accelerate the growth of the UK lawtech UK’s lawtech ecosystem. In researching each lawtech and
sector. It is currently delivered by CodeBase and Legal Geek. collecting regional insights, we mapped location based on
LawtechUK’s objectives include increasing innovation and where they were founded and set-up. To be included in the
lawtech adoption in legal services; increase understanding of LET, companies headquartered abroad must have a UK
the benefits of lawtech in legal service providers of all sizes; presence by:
support the development of technology to increase access
• having a UK subsidiary;
to legal services and reduce unmet legal needs; support the
growth of the UK’s lawtech sector and its contribution to the UK • being registered with Companies House;

2. https://www.statista.com/statistics/1155852/legal-tech-market-revenue-worldwide/
3. https://27221500.fs1.hubspotusercontent-eu1.net/hubfs/27221500/LawtechUK archive reports/Shaping the Future of Law - The LawtechUK Report
2021.pdf?utm_medium=email&_hsmi=73828429&_hsenc=p2ANqtz-87ciaoV-JRFtfvmwkzw1muuvcTAGkJgBfG3BNYa6MGX_GThSPB_MQMfg_r1k6E-
mZrzPt4y_-VaR1WxAkWEFTmSumTNg&utm_content=73828429&utm_source=hs_automation
LawtechUK LTUK Ecosystem Tracker 08

• having offices in the UK; or • Strong focus on business-to-business (B2B) solutions

– 68% of UK lawtech companies cater to B2B needs,
• having regular business dealings in the UK.
developing new tools for managing business and legal
support functions such as legal research and case
Key takeaways
management. This suggests that while lawtech is serving
• Growing lawtech sector – The lawtech sector has seen
businesses effectively, there may be untapped potential
accelerated growth from 2002 to 2023, when the number
in business-to-consumer (B2C) markets, particularly in
of lawtech ventures increased from 37 to 356.
addressing unmet legal needs.
• The UK as a desirable location for global expansion
• Improving diversity – The sector shows a significant
– non-UK-founded companies make up 28% of the
gender imbalance, as only 14.3% of UK lawtechs have at
ecosystem. At least £4.26 billion has been invested in
least one female founder. However, the past five years
these non-UK companies active in the UK. This highlights
have seen 26 new female-founded companies, indicating
the country as an area of interest for foreign companies
a potential positive trend. Given that a total of 51 lawtechs
seeking growth.
on the LET were female-founded, we can observe a
• Vibrant ecosystem – 43% of lawtech firms are based significant improvement in the diversity of the sector,
in London, and while lawtech has developed in particularly with female entrepreneurship consistent
other regional hubs in the last 15 years, the city focus across regions.
indicates the need for a continuing role for activities like
LawtechUK’s events and initiatives to support lawtech
innovation on a national scale
LawtechUK LTUK Ecosystem Tracker 09

03 What is
lawtech?
LawtechUK LTUK Ecosystem Tracker 10

What is
lawtech?

Lawtech is a catch-all term for a broad Areas of work

range of technologies that support, Broadly speaking, areas of work in the legal sector can
be broken down into four categories:
streamline, and, in some instances, replace
traditional ways of delivering legal services. • Performing work

It includes tools for dispute resolution, • Managing the business

contract management, compliance, • Managing and/or performing

digital documentation, e-signing, and • Consumer services

other automation processes, as well This four-way classification was influenced by work from
as infrastructure systems like practice the Legaltech Startup Report 2019[4] and adapted for the
LawtechUK Ecosystem Tracker. (See the Appendix for more
management and document management
information on the classification system).
systems and client-facing online services
In the context of lawtech, ‘performing work’ refers to the
and collaboration tools.
direct application of technology in the practice of law.
This report focuses on three main aspects of lawtech: This involves using tech for activities central to lawyers’ work,
such as litigation, legal research, case management, and
• Areas of work – specific areas of legal practices
client counselling. Lawtech digitises these core legal activities
and businesses in which technology is applied.
and makes them more efficient, accurate, and accessible.
• Technology stack – the digital layers that make In this way lawtech delivers digital transformation to legal
up lawtech solutions, ranging from applications service delivery.
to infrastructure.
The ‘managing the business’ aspect of lawtech refers to
• Technology purpose - what the technology does, digitising the administrative and operational side of a
and the problems it solves. legal practice. This includes tools and systems for practice
management, billing, client relationship management,

4. https://legalsolutions.thomsonreuters.co.uk/content/dam/openweb/documents/pdf/uki-legal-solutions/report/
tr-legaltech-startup-report-2019.pdf
LawtechUK LTUK Ecosystem Tracker 11

and other business-related tasks. While these tools are been committed to on-premises systems realised the business
fundamental to the efficient running of a legal practice, continuity and information security benefits of switching to the
they do not interact directly with the substance of law. cloud, and now most firms have some cloud services/back-up.
This has boosted lawtech adoption, as the majority of lawtech
‘Managing and/or performing’ covers the organisation,
solutions rely on third-party cloud infrastructure providers
analysis, and utilisation of knowledge at various stages of legal
such as Microsoft Azure, Google Cloud Vertex AI, and Amazon
service delivery. Whether handling in-house risk compliance,
AWS. Large language models like OpenAI present additional
case management, or contract negotiation, these tools are
risk factors around data privacy and security. Consequently,
designed to control the often confidential/business sensitive
lawtech providers are building secure interfaces for specific
information going in and out of the firm.
use cases that ring-fence firm and client data and include
‘Consumer services’ are a core tenet of the taxonomy. Lawtech cybersecurity features.
consumer services include apps and other tools to address
Applications
unmet legal needs, for example when members of the public
seek direct legal advice or want to complete a standardised The application layer in lawtech is the interface where legal
legal transaction without engaging a lawyer. We have given LET professionals interact with technology. In addition to core
data related to this area of work its own classification in order operational systems for practice management (including
to conduct a deeper analysis into B2C trends. time recording and billing), document management, client
relationship management etc., this commonly includes specific
Technology stack apps and plug-ins that facilitate legal processes, enabling tasks
to be completed quickly and accurately.
Technology stack refers to the engineering and programming
aspects of lawtech. It can be classified into four layers[5]: An examples of an application that expedites legal processes
includes contract review tools that use artificial intelligence
• Infrastructure
(AI) to read large volumes of legal documents and identify
• Applications potential issues, inconsistencies, or amendments. This massively
• Tools speeds up the review process and introduces a level of
precision and insight that might be challenging to achieve
• Workload Enablers
manually – because an AI engine can read multiple documents
Infrastructure – foundational layer simultaneously

The foundational layer refers to the core computing Legal research platforms enable legal professionals to quickly
infrastructure including servers, storage solutions, and parse through large volumes of statutes and regulations to find
network resources. relevant case law and precedents. This significantly cuts down
the time lawyers need to spend searching through legal texts,
For a long time, concerns around data security led many law
allowing them to concentrate on value-added client work.
firms to retain on-premises systems and storage. Although
these concerns persist, particularly among firms that work with Lawtech has long been used for litigation support, in the form
financial services institutions, when the Covid-19 pandemic of technology assisted review (TAR). In fact, some judges insist
forced legal services online, many firms that had previously that lawyers representing parties in corporate disputes use TAR

5. https://www.lawsociety.org.uk/campaigns/lawtech/guides/introduction-to-lawtech
LawtechUK LTUK Ecosystem Tracker 12

because replacing manual discovery methods with eDiscovery Workload enablers

software applications drastically reduces the time and cost The workload enabler layer supports applications and
involved in cases. tools with essential backend services, such as database
eDiscovery tools help law firms and legal departments in management systems (DBMS) and data visualisation software
organisations manage the electronic aspects of discovery, and services. The workload layer manages the way that data
such as collecting, processing, reviewing, and producing is stored, processed, and presented.
electronic documents as part of litigation or investigations. Workload enablers are used to manage fluctuating workloads
Software systems within the application layer can integrate and complex tasks. Some enablers are not exclusive to legal
with each other through APIs (Application Programming technology but are adapted to interface effectively with
Interfaces). APIs act as bridges that allow different software lawtech applications and tools.
systems to communicate and work together seamlessly. For
instance, a case management system that provides case data
might use an API to connect with a document automation
tool. This connection enables the automated creation of legal
documents based on specific case data, streamlining workflows
and reducing the margin for error.

Tools
While the application layer focuses on user-facing apps, core
systems and specialised applications are underpinned by
backend technologies – the ‘invisible’ technologies – that
manage the server, databases, and all the applications that link
the server with the user interface.

The distinction between the tools and the application layer is

that tools do not usually have a direct interface with the user.
For example, Betty Blocks, Bryter and Gavel include backend
coding that can be used to build semi-bespoke applications
for legal professionals.
LawtechUK LTUK Ecosystem Tracker 13

Technology The Oxford Venture Ecosystem Taxonomy (OVET) [6]

classifies technology by functionality (i.e. what
and anti-money laundering compliance.

OVET breaks down the ‘purpose of technology use’

purpose
technology can do) rather than by type, e.g. document
into eight categories:
management and automation, case management,

01 Personalisation
& customisation
This is where a user can develop a unique profile via the technology in use. Unique
user profiles are used to adapt the software to each user based on how they use it.
The development of this profile lends itself to generate outputs and data that best fit the
needs of each user. For example, a company might have a contract playbook that could
generate contract templates to its specific needs. Marketplace tools, whereby lawyers
and customers can connect online combine user profiles with backend data recording
how different users connect to filter the results.

An example of ‘personalisation and customisation’ in the LawtechUK Ecosystem

is CrowdJustice, a fundraising platform for people with legal issues. Personalisation
in the form of the ability to tell unique stories is used to build support.

02 Privacy
protection
Legal matters regularly require clients to share private, proprietary, and confidential
information, and legal service providers are responsible for keeping this data secure.
All technologies in the Ecosystem have at least an element of data privacy and protection
built into their processes and policies. Privacy protection technologies are specifically
built around controlling access to confidential or sensitive data. For example, virtual data
rooms are regularly used to manage mergers and acquisitions. These online resources allow
parties to share and negotiate confidential information in a private, ring-fenced virtual
environment. Data encryption is another popular solution for data privacy and protection.

03 Recognition Recognition technologies automatically identify and categorise text, image, video,
or audio data. SnapDragon Monitoring uses AI to track the online use of intellectual
property. IP owners using the tech are notified of potential infringements of their logos,
text, and images.

04 Generation Generation tech automatically generates text, image, video and audio data for specific
purposes. In the LawtechUK Ecosystem, Added Matter uses generative AI to draft patent
specifications and generate arguments for patent prosecutions.

6. https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID3925723_code339371.pdf?abstractid=3822606&mirid=1&type=2
LawtechUK LTUK Ecosystem Tracker 14

05 Forecasting Forecasting tech uses time-series data to estimate future outcomes. Our analysis of
the LawtechUK Ecosystem did not identify any legal tech forecasting products/services.
However, forecasting might be built into existing billing or case management tools
and applications.

06 Prediction Whereas forecasting estimates outcomes based on time-series data, prediction

estimates outcomes for unseen data, such as pricing or profitability. Our analysis
of the LawtechUK Ecosystem did not identify any companies marketing legal tech
prediction products/services.

07 Event
detection
Both prediction and event detection technologies might be used for identifying risks.
The difference is that event detection is used to identify risks within current data, rather than
estimated data. Event detection tools identify anomalies in data to notify users of potential
issues such as fraud or non-compliance, making it particularly useful for regtech companies.

Lexverify uses AI to monitor and prevent electronic communication risks; for example,
by notifying employees when an email contains personally identifiable information under
GDPR or by preventing the accidental execution of contracts.

08 Goal-driven
optimisation
OVET originally defined the classification of goal-driven optimisation as AI tools with
the ability to replace human decision-making and identify the optimal solution – for
process efficiency, for example. In the context of LawtechUK, this classification relates
totechnologies that use multiple tools to achieve overarching goals.

A common example is case management software, which brings together document

automation, billing, analytics, communication, with the overarching goal being the
cost-efficient delivery of legal services.

Crespect brings cases, clients, colleagues, and costs together in one portal designed
to improve efficiency and effectiveness. Gavel is a no-code software that is used to
generate documents, automate workflows, onboard clients, and more. These solutions
bring together multiple features and functionalities to achieve a common goal.
LawtechUK LTUK Ecosystem Tracker 15

Legal-specific
or generic

Lawtech solutions typically fall into four main GenAI has renewed interest in plug-ins; for example,
Co-counsel by Casetext (acquired by Thomson Reuters)
types of technology. Some offer applications
is embedded in Microsoft Word – as are GenAI startups
(like contract review software) and tools (such Lexion and Spellbook.
as databases for analysing contract clauses) For the purposes of this report, the lawtech companies
that are built on underlying technologies, mentioned provide apps and tools, but exclude generic
described here as ‘workload enablers’, which infrastructure providers.

include things such as database management

systems or tools for visualisation.
Lawtech software for managing legal business processes
(such as matter management systems) also uses ‘workload
enablers. These might be used in legal contexts and more
generally. While lawtech focuses on digital solutions for
legal issues, the technology it produces can often be used
in broader, non-legal applications.

All layers of the technology stack can be classified as

legal-specific or generic. Most lawtech solutions are
designedto integrate with generic applications e.g. Microsoft
365. To stimulate wider adoption, iManage Work and Litera
plug-ins integrate with Microsoft Word, as two examples.
LawtechUK LTUK Ecosystem Tracker 16

04 Data
analysis
LawtechUK LTUK Ecosystem Tracker 17

Overview of the
UK lawtech
industry
The LawtechUK Ecosystem Tracker has The industry at a glance
already identified encouraging data points
and indications that lawtech innovation in 356 lawtech companies
the UK will continue to follow an upwards
trajectory, and increase its contribution to
the national economy.
254 UK founded
Of the 356 lawtech companies operating in the UK,
254 are UK-founded, signalling a robust climate for
domestic innovation. These UK-founded entities £1.38 billion total investment
have secured investment of more than £1.38 billion, (UK-founded)
which demonstrates the financial community’s strong
confidence in the sector.

The 102 non-UK headquartered companies active in 43% founded in London

the region received more than £4.26 billion in funding.
The substantial number of non-UK headquartered
companies operating in the UK shows that the UK
lawtech environment is highly attractive to international 102 non-UK founded*
businesses. The UK’s regulatory framework, talent pool,
and market potential, make it a prime destination for
global lawtech activity.
24% classed under
London has long been a global legal centre and it is Documents and Contracts
now a major lawtech hub, and home to 43% of lawtech
companies. Over the last decade, the sector has seen
400% growth, and there are indications that this rapid
and sustained expansion is set to continue. 4x growth in the last decade

*Non-UK represents companies active in the UK with international headquarters

LawtechUK LTUK Ecosystem Tracker 18

Analysis of the lawtech market reveals a predominant B2B

focus, with 68% of companies targeting businesses, while B2C Company models
and hybrid models (serving law firms and individuals, or public
sector and not-for-profit organisations) account for 7% and
25% respectively. This distribution reveals a diverse ecosystem 68% B2B (total)
catering to multiple groups with different legal service needs.

As the UK lawtech sector continues to scale, the insights from

the LET highlight a vibrant and evolving market, positioning
the UK as a frontrunner in legal technological advancements. 7% B2C (total)
However, the investment figures underscore the need
for continued support and policy development to sustain
momentum. This includes nurturing talent, through the free
LawtechUK education programmes for startups at different
stages of growth, improving access to capital/funding, 25% hybrid (total)
and ensuring the regulatory environment keeps pace
with technological advancements

Growth analysis UK lawtech is experiencing an impressive

upward growth trajectory, as shown by the
For example, ContractPodAi has raised £139 million since
2012. Recognised as a Visionary by Gartner in 2021, 2022, and

and trends
2023, ContractPodAi’s stated mission is to revolutionise the
increasing number of active companies and way legal teams, law firms, and individuals author, analyse,
the substantial inflow of investment. and manage documents on an unprecedented scale. Its AI
assistant Leah, a full-stack GenAI solution, delivers secure,
enterprise-ready innovation to accelerate growth and ensure
measurable ROI for any legal scenario. Leah redefines legal
processes, empowering strategic thinking and offering real-
time, precedence-based analysis.

A London-based enterprise with offices in San Francisco,

New York, Glasgow, Chicago, Sydney, Mumbai, and Toronto,
ContractPodAi has more than ten years of experience in
developing legal AI solutions.
LawtechUK LTUK Ecosystem Tracker 19

Growth trends (cumulative)

# companies founded
400

CASE STUDY:
350

ContractPodAI
300

FACTFILE:

Founded 2012 250

Company 201-500
size 200

Area of work Performing work | Documents

and contracts
150
Funding £139 million
raised

Technology - Apps | Services 100

Stack

Technology - Goal-driven Optimisation 50

Purpose

Customer B2B - In-house

0
Region London 1990 1995 2000 2005 2010 2015 2020 2023

CONTACT:
Innovation in AI, especially GenAI, which allows for more innovate in the legal sector without necessarily converting to
[email protected] contextual handling of legal data and processes, has ABSs. The Act’s impact, alongside other legislative and global
accelerated lawtech’s growth trend. Although Gen AI is factors such as the Data Protection Act 2018, underpins the
contractpodai.com still in its infancy, how the legal community responds to this complex interplay between regulation and innovation.
significant development in AI and machine learning will shape
www.linkedin.com/company/contractpod the future of lawtech.

4 Kingdom Street, London, W2 6BD The UK’s liberalised legal services landscape, created by
legislative changes such as the Legal Services Act 2007,
produced a great environment for technological innovation.
While lawtech providers are not subject to the same regulatory
frameworks as law firms, the introduction of alternative
business structures (ABS) broadened the scope for innovation in
legal services. This created opportunities for entities, including
those led by tech entrepreneurs and non-practising lawyers, to
LawtechUK LTUK Ecosystem Tracker 20

UK FinTech vs SME growth

FinTechs

SMEs
1200

1000

800

600

400

200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

The pattern of growth in the lawtech sector shows striking The upward growth curve of both sectors demonstrates the
parallels with the UK fintech sector, which also experienced broad acceptance and integration of technology solutions in
rapid expansion and sustained investment. Therefore, the the business markets. However, lawtech may experience similar
patterns observed in the fintech sector provide valuable challenges to fintech. For example, highly concentrated growth
insights into the potential future of lawtech. in London could produce a similar pattern of urban clustering.
LawtechUK LTUK Ecosystem Tracker 21

Areas of work

Level one of the taxonomy includes the following Count of companies by area of work - Level one
four classifications.

1. Managing the business - technology’s role

in the administrative and operational side
of a legal practice.

2. Performing work - the direct application of 40 (11.24%)

technology in the practice of law. 65 (18.26%)
3. Managing and/or performing - the organisation,
analysis, and utilisation of knowledge at various
stages of legal service delivery. A binary approach
that combines classifications one and two ignores
the large area where they intersect.

4. Consumer services - solutions for those who

need legal advice directly or want to complete 136 (38.2%)
a standardised legal transaction without having 115 (32.3%)
to engage a lawyer.

The pie chart shows the distribution of companies across

four level one categories. The ‘managing and/or performing’
category contains the highest number of companies,
a total of 136, which equates to 38.2% of the companies,
reflecting a strong focus on matter management and
risk/compliance/regtech software.

‘Performing work’ is the second most populous category,

with 115 companies making up 32.3% of the total. Managing the business Managing and/or performing
‘Consumer services’ has fewest companies, suggesting
Performing work Consumer services
a potential gap in the market for direct-to-consumer
legal solutions. The guidance document for the taxonomy
provides further details on these classifications.
LawtechUK LTUK Ecosystem Tracker 22

Level two of the taxonomy breaks down the work compliance, labelling clauses or applying Al-driven early
area classifications. case assessment and TAR to discovery matters.

‘Documents and contracts’ cover 24% of lawtech companies, Companies focused on dispute resolution, family, wills and
indicating a significant focus on activities such as contract probate, and conveyancing and real estate form a smaller
management and automation. This category also attracts level two group of just 40. This is less than half the number in
CASE STUDY: a wide range of funding, with the highest investment being the documents and contracts category, highlighting a disparity

Luminance £400 million and the lowest at £33K. Luminance was an early
entrant into this dominant work area. Built on a proprietary
between the distribution between corporate/commercial
consumer services companies across the lawtech ecosystem.
legal large language model, Luminance’s AI reads and forms
FACTFILE: a conceptual understanding of legal documents in any
Founded 2015
language, which enables it to handle tasks including taking a
first-pass review of incoming contracts, automatically flagging
Company 101-200
size
contractual anomalies, highlighting potential areas of non-

Area of work Performing work | Documents and

Contracts Count of companies by area of work - Level two
Funding Undisclosed
raised Documents & contracts Finance & operations Knowledge Litigation
Technology - Apps | Services
Stack

Technology - Goal-driven Optimisation

Purpose

Customer B2B - Large Law Firms

Region East of England

CONTACT:
37 28 18
[email protected] 85
Rights management Family, wills & Clients
Risks
www.luminance.com
probate

https://www.linkedin.com/company/
16
luminancetech/

Nine Hills Road, Cambridge, CB2 1GE People & resources

47 14 13

Matters Dispute resolution

15
12
Conveyancing &
real estate Transactions

45 14 12
LawtechUK LTUK Ecosystem Tracker 23

We looked at the spread of the financing of UK lawtechs across

each level one area of work. Our analysis reveals a broad spread
of funding across lawtech companies engaged in different
areas of legal work, indicating healthy financial interest and
confidence in sector-wide growth potential.

Funding range

100

80

60
%

40

20

0
Managing and/or performing [MP] Performing work [PW] Managing the business [MB] Consumer services [CS]

Area of Work Level 1 (using taxonomy guidelines)

£0 - £500k £500k - £1m £1m - £5m £5m - £10m £10m - £50m >£100m
LawtechUK LTUK Ecosystem Tracker 24

There is a notable bias in the allocation of funds towards Encouragingly, the ‘consumer services’ category, which
the ‘managing and/or performing’ category, which targets consumers seeking help with direct legal service needs,
provides solutions for both the operational and practice- attracts a spread of investment that suggests a growing interest
oriented aspects of legal work. This category stands out, in consumer-focused lawtech solutions. This trend highlights the
with many companies receiving investments over £100 expanding market for platforms that increase consumer access
CASE STUDY:
million, highlighting investor confidence in firms that offer to legal resources. However, the average amount of funding

Legatics integrative solutions. raised by lawtechs in this category is much lower than those
in the B2B and mixed/hybrid categories.
The ‘performing work’ segment, which focuses on the
FACTFILE: direct delivery of legal services to clients, also shows Across all categories, the presence of lawtech companies
a substantial funding footprint. The investment here in the highest investment bracket (>£100 million) underscores
Founded 2015
demonstrates a clear market validation of solutions the sector’s maturation and the successful scaling of ventures
Company 11-50 facilitating legal service delivery and client interaction. within the ecosystem. The prominence of lawtechs focusing
size
Legatics is one of the 12 companies on the tracker that on documents and contracts, risk management and rights
Area of work Performing work | Transactions specialise in transactions within ‘performing work’. management indicates the strength of investor interest in
(including M&A)
In August 2023, it successfully closed a £4 million funding lawtech solutions that enhance financial efficiency, mitigate
Funding £7.8 million round, bringing its total capital raised to approximately risks, and manage legal rights – areas that are foundational to
raised
£7.8 million. Legatics isa transaction management platform the success of legal services and the wider business community.
Technology - Apps | Services that enables law firms to collaborate and close deals in an
Stack
interactive online environment, enabling lawyers to plan,
Technology - Goal-driven Optimisation organise, and execute transactions in one place.
Purpose
‘Managing the business’– the category dedicated to
Customer B2B - In-house, Large Law Firms and
Small law firms the operational side of legal practices – equals the
‘managing and/or performing’ category when it comes
Region London
to attracting high-value investments. This represents
an acknowledgement of the critical role that back-
CONTACT:
end operations play in the scalability and efficiency
[email protected] of legal services.

www.legatics.com

www.linkedin.com/company/legatics

Temple Chambers, 3-7 Temple Avenue,

Temple, London EC4Y 0DA
LawtechUK LTUK Ecosystem Tracker 25

Technology

The UK lawtech sector is sharply Technology | Stack

focused on goal-driven optimisation,
where technology brings more than 1 (0.285 %)
standalone functionality. While its main 15 (4.21%) 1 (0.285 %)

purpose is to develop and deploy tech

solutions that enhance the performance
of law firms and legal service providers
it also needs to align with business
development objectives.
The most substantial segment of the sector comprises
applications and services, reflecting a sharp focus on
end-user (rather than back-end) software such as case
management, document collaboration and automation,
which streamline tasks and boost operational efficiency.

A closer look at the technology stack reveals that

services apps dominate the lawtech landscape. and 339 (95.22%)
there is a clear preference for solutions that deliver
a suite of services accessible via a single platform.
Operational tools represent a significant portion of the
stack, reflecting the trend that many lawtech companies
are developing tools that enhance the day-to-day
running of legal practices.

APIs are another important component of the stack,

highlighting the importance of connectivity and
integration in today’s lawtech solutions. APIs enable
lawtech solutions to interface with the rest of firms’ Apps | Services Apps | Frameworks
software stack, extending their utility into more
legal workflows. Apps | API Apps | Operations
LawtechUK LTUK Ecosystem Tracker 26

While frameworks are the smallest category included Technology | Purpose

in the tracker, their impact should not be underestimated,
as they provide building blocks for customisation 8 (2.24%) 5 (1.4%)
18 (5.06%)
and specialised application development, such as
no-code platforms that empower legal professionals 19 (5.34%)
to create bespoke solutions with limited technical
expertise. This foundation is important as the sector
contemplates a significant technological shift as
CASE STUDY: GenAI adoption increases.

Genie AI Genie AI, which was founded in 2017 by Rafie Faruq

and Nitish Mutha hosts one of the UK’s most extensive
open- source legal template libraries. It also developed
FACTFILE: an AI legal assistant, which combines GPT-4, Claude-2,
Founded 2017
and other proprietary large language models to draft
66 (18.54%)
legal documents, understand queries, evaluate contract
Company 11-50
size
risk levels, and generate customised responses.

Area of work Performing work | Documents Genie AI received support from Lord Neuberger, £1 240 (67.42%)
and Contracts million in UK Government Grants, and over £2 million in
Funding £2.00 million-£5.00 million (private); seed funding, with investors such as Connect Ventures.
raised £500,000-£1.00 million (grant) Co-founder Rafie Faruq and the Genie AI team have been
Technology - Apps | Services involved in the LawtechUK Fundamentals, LawtechUK
Stack Builder, and LawtechUK Scaler programmes.
Technology - Personalisation and Customisation
Purpose The distinction between previous iterations of legal AI
and GenAI is prominent in the current lawtech discourse.
Customer Hybrid - Both B2B and B2C
GenAI’s potential to revolutionise legal task automation,
Region London has positioned the lawtech community at a crossroads,
Goal driven Optimisation Recognition
exploring how these developing technologies can be
CONTACT:
harnessed effectively. LawtechUK’s strategic focus on Personalisation & Customisation Event Detection
[email protected] GenAI signifies a forward-looking approach, anticipating
the integration of these technologies into the fabric of Generation Privacy Protection
www.genieai.co legal services.

www.linkedin.com/company/genie-ai

251 Wimpole Road, Cambridge,

Cambridgeshire, CB23 7AE
LawtechUK LTUK Ecosystem Tracker 27

Market The ecosystem is dominated by B2B solutions, with

243 firms accounting for 68% of the market. These B2B
for growth in consumer-centric lawtech solutions.
One example is Valla, a free online AI platform that helps

composition
companies significantly outnumber their B2C counterparts consumers to manage legal problems without incurring
but also secure more funding. big bills. Valla helps people understand legal processes,
generate their own documents and connect with a lawyer
Hybrid companies operating in B2B and B2C sectors,
for fixed-price legal advice.
make up 25% of the ecosystem with 88 ventures, reflecting
lawtech’s ability to broaden its scope by blending different Based in Glasgow and founded by Danae Shell in 2020,
service models. Valla radically simplifies legal paperwork, so users can
collect evidence, generate forms, and send legal letters
Companies primarily serving the B2C market represent
without paying a law firm – making access to justice more
only 7% of the market, indicating a potential area

100

80

60
%

40

20

0
Large law firms In-house Both B2B & B2C Consumers Small law firms Other

Target Customers

£0 - £500k £500k - £1m £1m - £5m £5m - £10m £10m - £50m £50m - £100m >£100m
LawtechUK LTUK Ecosystem Tracker 28

accessible, for example by reducing the cost of taking higher funding brackets, while B2C companies usually
CASE STUDY: a case to an employment tribunal by 90%. secure less funding, and when they do, it is typically
under £1 million.
Valla Valla is the only B2C lawtech entity in Scotland
included in the LET taxonomy, and has secured significant This difference in funding distribution raises important
funding, ranging between £500,000 and £1.1 million. questions about the direction of the lawtech sector and
FACTFILE: Additionally, Danae Shell teaches new start-up founders its impact on wider social issues, including access to
Founded 2020 on LawtechUK’s Builder programme and is a regular justice and whether B2B or hybrid models could help
presenter and panellist at LawtechUK events. to drive these initiatives.
Company 1-10
size
In terms of funding in relation to market composition,
Area of work Consumer services | Dispute resolution we have data available for 212 of the 356 LET companies.
Funding £500,000 - £1.1 million
The allocation of funds reveals a clear trend of B2B
raised lawtechs securing more investment, especially in the
Technology - Apps | Services
Stack

Technology - Personalisation and Customisation

Purpose

Customer B2C - Consumers

Region Scotland

CONTACT:

[email protected]

www.valla.uk

www.linkedin.com/company/valla

6th Floor Gordon Chambers, 90 Mitchell Street,

Glasgow, Scotland, G1 3NQ
LawtechUK LTUK Ecosystem Tracker 29

Regional
composition

The heat map illustrates the spread of lawtech

ventures across the UK.
• London = 151 (60%)

• South East = 23 (9%)

• South West = 11 (4.3%)

• Scotland = 13 (5.1%)

• East of England = 11 (4%)

• East Midlands = 9 (3.5%)

• West Midlands = 8 (3.1%)

• North West = 9 (3.5%)

• North East = 4 (1.6%)

• Yorkshire and the Humber = 8 (3.1%)

• Northern Ireland = 2 (0.8%)

• Wales = 5 (2%)
LawtechUK LTUK Ecosystem Tracker 30

London has a well-deserved reputation as a global developed a global customer base. Regional innovators
centre for lawtech enterprises, as 60% of the LET firms like Summize are enriching the lawtech landscape,
are based there. But lawtech is not confined to London: helping to drive its expansion.
in fact, there is a growing trend of lawtech development
The investment landscape for UK lawtech ventures
and opportunity in several of the UK’s regional hubs.
is a tale of regional growth and sector maturation,
Areas such as the South East, North West and Scotland with the total capital raised by these ventures ranging
are emerging as significant players, accommodating between £1.38 billion and £1.55 billion.
CASE STUDY: 9% and 5.1% of lawtech firms respectively. Since 2010,
London commands the lion’s share of investment, which
Scotland and the East of England have experienced
Summize a surge in lawtech activities. The South East and the
is a testament to its long-standing position as a global
business and legal hub. Non-UK entities with operations
North West are also seeing an upward trajectory, with new
in the UK also make a significant impact, underscoring
FACTFILE: startups supported by consistent interest from investors.
the UK’s strong reputation as an international centre
Founded 2018 One example of a successful regional lawtech is for lawtech.
Summize, a Manchester-based, digital contracting
Company 51-200 However, the disclosed investment figures are not
size software business It simplifies the contracting process by
uniform across the board. For instance, regions like
embedding workflows directly into familiar technologies,
Area of work Performing work | Documents and Yorkshire and the Humber have a significant portion
Contracts including Salesforce, Jira, Teams, Slack and Word. Its
of their lawtech firms not reporting funding, which might
AI- powered metadata summaries save in-house legal
Funding £5 million - £10 million contribute to their investment totals, especially compared
raised teams hours in manual review time.
with the greater transparency in other regions such as
Technology - Apps | APIs Summize falls within the upper funding bracket (£5 Northern Ireland.
Stack
million - £10 million). Its team is growing and it and has
The 2010s marked a watershed decade for the sector,
Technology - Goal-driven Optimisation
Purpose which experienced an investment boom roughly 40 times
Region Total (min) Total (max) that of the preceding decades. This period saw the rise of
Customer B2B - In-house
key players such as Everlaw, Ideagen, and ContractPodAI,
East Midlands £296,300,000 £296,700,000
Region North West following a spike in non-UK investments during the
East of England £35,550,000 £37,450,000
late 2000s.
CONTACT: London £1,002,111,400 £1,134,511,400
Between 2018 and 2023, the North East, South East,
www.summize.com Non-UK £4,261,423,500 £4,301,423,500
and Scotland, started to attract more funding, indicating
North East £685,000 £685,000
new clusters of lawtech activity. Despite this, the North
www.linkedin.com/company/summizeltd
North West £10,700,000 £18,600,000 East still represents only a small fraction of the Ecosystem
The Treehouse, Floors 3&4,127 Portland St.,
Northern Ireland £2,600,000 £2,900,000 Tracker’s total company count, at just over 1% of the
Manchester, M1 4PZ Scotlang £13,850,000 £26,650,000 UK lawtech startups.
South East £5,700,000 £8,500,000 It is important to note that the investment data is
South West £2,690,000 £3,190,000 dynamic and will be updated in the next quarterly release
Wales £900,000 £1,200,000 of the LET, in May 2024. The additional data will refine our
West Midlands £11,400,000 £21,500,000 understanding of investment distribution, and all changes
Yorkshire & the Humber £500,000 £1,200,000 will be duly reflected in the updated online tracker tool.
LawtechUK LTUK Ecosystem Tracker 31

Non-UK
companies

Non-UK companies with international headquarters

that are registered and operational in the UK are
making substantial inroads into regional markets.
Forty- eight non- UK lawtech companies have set up their
UK operations in London, reinforcing London’s position as
a lawtech hub and its appeal to international businesses.

Beyond the capital, both Scotland and the South East

are making their mark as pivotal areas for global lawtech
firms, securing investments of £31.3 million and £145.9
million, respectively

The LET documents a total of 58 non-UK companies

with registered UK offices, aggregating to £2.44 billion
of disclosed investment. This distribution of international
lawtech companies not only reflects the UK’s ability to
attract global business but also suggests a strategic
spread of these firms across the UK legal market.

Region # Companies Total (min)

London 48 £2,242,982,000
Northern Ireland 1 £10,000,000
Scotland 4 £31,300,000
South East 4 £145,900,000
Yorkshire & the Humber 1 £13,200,000
Total 58 £2,443,382,000
LawtechUK LTUK Ecosystem Tracker 32

Diversity An examination of founder diversity in the UK’s lawtech

sector reveals a significant gender gap. According to
founders. These statistics suggest that while London is a
focal point for female-led lawtech innovation, there is a
the LET, female founders are at the helm of just 14.3% fairly even spread of female entrepreneurship across the
of lawtech ventures, or 51 companies. This figure includes UK lawtech community.
co-founding teams with at least one female founder.
Diving deeper into the customer-focused aspects of these
The representation of female founders in lawtech fits
ventures, female-founded lawtech companies show a
with industry analysis, such as the study by the Solicitors
stronger inclination towards serving the B2C market. They
Regulation Authority (SRA)[6], which highlighted that only
represent 28% of the firms in this segment, with the vast
18.3% of lawtech ventures include at least one female
majority being UK-founded. This indicates a distinct trend
founder in the UK, despite women constituting 35% of
where female entrepreneurs in the lawtech sector are
partners in UK law firms.
more likely to focus on consumer-facing solutions.
• 17% of London companies are female-founded.

• 9% of non-UK companies are female-founded.

Founder diversity by customer classification

• 17% of non-London companies are female-founded.

% female founded companies B2B

Female
51 (14.3%)
B2C

Male Hybrid
305 (85.7%)

0 50 100 150 200 250

Female founded Non-female founded

Nearly half of the female-founded lawtech companies
are based in London, with 17% of London-based ventures
including female founders. Outside the UK, only 9% of
lawtechs have female leadership, while UK regions outside
of London also report that 17% of lawtechs have female

6. https://www.lawsociety.org.uk/campaigns/lawtech/guides/introduction-to-lawtech
LawtechUK LTUK Ecosystem Tracker 33

A great example of a B2C female founded lawtech working with couples rather than representing individuals.
is amicable, which was co-founded by Kate Daly and It also developed a co-parenting app designed to reduce
CASE STUDY: Pip Wilson in 2015. tension, confusion and stress by managing various
aspects of co-parenting. In 2023, amicable was acquired
amicable Amicable developed an emotionally led, fixed-fee service
to help separating couples navigate the legal journey
by the Octopus Group.

of ending their relationship. By combining coaching to Having raised funding above the £1 million threshold,
FACTFILE:
facilitate negotiations with technology to automate as amicable fell into the higher investment bracket for
Founded 2015 much of the legal process as possible, it was able to help female-founded lawtech firms. Kate Daly and Pip Wilson
more people while maintaining fixed fees. have contributed to Lawtech Fundamentals and the
Company 11-50
size
Lawtech Scaler program.
In 2020, amicable won a landmark High Court Judgment
Area of work Consumer services | Family, Wills challenging the lawyer vs lawyer model of divorce and
and Probate separation. This validated amicable’s approach of only
Funding £2.2 million
raised

Technology - Apps | Services

Stack

Technology - Personalisation and Customisation

Purpose

Customer B2C - Consumers

Region London

CONTACT:

[email protected]

amicable.io

www.linkedin.com/company/amicable-divorce

Unit 5 Sheen Stables, 119 Sheen Lane, London

SW14 8AE
LawtechUK LTUK Ecosystem Tracker 34

05 Conclusion
LawtechUK LTUK Ecosystem Tracker 35

Conclusion

The Legal Services Act 2007 was a catalyst Addressing founder diversity

for explosive growth in lawtech innovation Female lawtech entrepreneurs face substantial hurdles in
securing funding, with all-female founder teams receiving only
driven by regulatory changes, technological 2p for every £1 of equity investment in the UK in 2021. At the
advancements, and market interest. We are same time, some female-founded companies like amicable
now in a new period of growth and innovation successfully raised investment and were acquired.

as the UK legal sector decides how to respond Acknowledging the need for greater gender diversity among
to GenAI. lawtech founders, as highlighted in the LET findings, LawtechUK
is spearheading initiatives to encourage more female founders
London is the epicentre of UK lawtech and is home to 43% of into lawtech. The indications are that these efforts are worth
European lawtechs. However, there are successful founders and persisting with, because although some progress is being made,
investors in other UK regions, and new companies are emerging there is still a significant diversity gap in the lawtech ecosystem.
across the UK. This domestic market diversification will support
the delivery of consumer legal services and benefit the public. Addressing regional gaps
LawtechUK is actively addressing regional disparities in
The report identifies key gaps and opportunities:
the lawtech landscape. By identifying and working to close
• The opportunity to promote greater founder diversity, these gaps, it seeks to ensure that the benefits of lawtech
as only 14.3% of lawtech companies currently have a innovation are widespread across the country.
female founder.
Meanwhile, the frequency of company formation outside
• The potential for more strategic initiatives to support of London has increased dramatically since market
regional lawtech innovation. liberalisation in 2007. The South East, Scotland, and the
• A gap in consumer-focused lawtech technologies South West have seen a double digit increase in new
to address unmet legal needs. lawtech companies.

• The promise of an enabling regulatory environment

for lawtech growth and responsible adoption of
transformative technologies like GenAI.
LawtechUK LTUK Ecosystem Tracker 36

Boosting consumer-focused technologies Building stakeholder engagement and collaboration

There is still a significant gap in the market for consumer- As we share these findings, LawtechUK invites feedback and
facing lawtech applications. LawtechUK is actively facilitating collaboration from the lawtech community. Our goal is to work
dialogue and partnerships between lawtech startups and legal together to address the challenges and seize the opportunities,
service organisations to encourage innovative solutions that fostering a dynamic and responsive lawtech ecosystem.
address public legal needs, aiming to bridge the access to
The LawtechUK Ecosystem Tracker has mined a vast dataset
justice divide.
to support the examination of the lawtech landscape. The data
highlights the UK’s global leadership in lawtech and identifies
“This report shows where there is provision, what that offers and, just as importantly, gaps in the market that are also opportunities. Historically, such
where there are gaps. The most significant of these relates to the lack of consumer- opportunities have proven fertile ground for innovation and
facing technologies. There is a genuine opportunity to develop technological solutions investment. By addressing these gaps, UK lawtech can unlock
that can offer real world support to citizens who might otherwise have their problems its potential to enhance legal services delivery and access to
unresolved. We want to encourage and assist those lawtechs that are interested in this justice for all.
area. LawtechUK is also actively engaging with the relevant stakeholders to come up with
creative solutions to reduce unmet legal needs and welcome wider input from the sector.
Together, we can make a major contribution to addressing this vital issue, bringing about
significant societal benefits. We hope that all those interested in access to justice and the
Rule of Law will join us.”

Christina Blacklaws, Chair of LawtechUK Panel

Harnessing GenAI for legal innovation

GenAI offers transformative potential for the legal industry.
LawtechUK encourages legal service providers to embrace
new technologies and apply them securely to enhance service
delivery and client offerings. Through educational programmes,
funding, and ethical guidelines, we are paving the way for
responsible and innovative AI use in law.
LawtechUK LTUK Ecosystem Tracker 37

06 Appendix
LawtechUK LTUK Ecosystem Tracker 38

Appendix - Non-UK companies with insufficient presence are

also excluded from the list.
Limitations
It should be noted that the data available for analysis has
• Step 3 – Catalogue acquired ventures inherent limitations.
Methodology
- Ventures that were acquired are noted, and the • For example, not all firms disclose their funding
In May 2023, the LawtechUK research team began to
date of acquisition is recorded. publicly (on platforms such as Crunchbase or
identify and review over 2500 potential lawtech firms
Beauhurst), leading to their exclusion from funding
operating in the UK. The list was compiled with data from - Acquired ventures are characterised as analysis. Therefore, potential adjustments may be
Legal Geek, Crunchbase and Beauhurst. ‘independent’ or ‘absorbed’. needed as and when such data emerges.
Eligibility - Independent firms remain on the list as active • The absence of time series data also prevents
companies. accurate assessment of funding timing.
A three-step process was followed to determine eligibility
for inclusion in the LET. - Absorbed firms are excluded as their business is • It’s important to recognise that the scope of B2C
now undertaken by another company on the list. lawtech firms is broad, encompassing a range of
• Step 1 – Initial activity and eligibility check of the
aggregated list Classification services, not just those fulfilling unmet legal needs
and access to justice. For example, many consumer-
- Confirm whether a firm is active (ongoing concern) After confirming activity and eligibility, the tracker classifies
facing companies are involved in conveyancing and
ventures according to an innovative taxonomy: the Oxford
- If active, whether it matches the taxonomy real estate.
Venture Ecosystem Taxonomy (OVET) (for full details, see
eligibility criteria
2019 SSRN working paper[7]). Data reliability ultimately hinges on the information
- If inactive (dormant, dissolved, or undergoing companies choose to report publicly or to Companies
The LET taxonomy adapted OVET to reflect the new AI-
liquidation), the firm is removed from the list. The House. Despite a thorough review by the LawtechUK team,
driven tech landscape better. The taxonomy was carefully
decision is made based on filings in Companies the insights are constrained by the lack of transparency of
designed to fit the research scope set out by one of its core
House, operability of websites, and online private companies.
creators, Mari Sako at the University of Oxford.
presence.
Analysis
- Firms are deemed ineligible if they deliver • The taxonomy was developed to provide insights for
diverse stakeholders (founders, funders, policymakers, The resulting dataset of 356 active companies was
consulting advice or media information and show
and consumers) to gauge the scalability of startup classified by activity, time, location, and funding data.
no sign of developing market legal tech.
ventures. Analysis of this data provided insights into the emergence
• Step 2 – Review business location and success patterns of lawtech companies.
• The key dimensions of the taxonomy used for
- Companies founded in the UK, based on classification, and therefore differentiation, are (a) With most lawtech companies based in London or
Companies House filings, remain on the list. areas of work, (b) technology stack, (c) purpose of headquartered outside of the UK, care was taken to ensure
technology use, (d) value capture model, (e) client a broad picture with analysis of domestic markets outside
- Companies founded outside the UK but with a UK
type, and (f) founder characteristics. of London and mapping the sector’s expansion across the
presence remain on the list. A UK presence has
UK.
either a UK arm of the company registered with • We also documented (g) funding raised by ventures,
Companies House, offices in the UK, or regular using two sources – Beauhurst and Crunchbase – with The classifications were also compared against each other
business dealings in the UK market. additional data pulled from company press releases. to identify which areas of work might give rise to more

7. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3822606
LawtechUK LTUK Ecosystem Tracker 39

significant funding and whether company size makes a not account for major events, such as COVID-19, but rather • Legal docs as a service (classified as documents
difference. For instance, larger lawtech firms might be looks at the general direction in which the data is travelling. and contracts)
more likely to serve large law firms rather than individual
Guidance notes for the area of work classification • Legal services (this seems to be a broad category
consumers, and so on.
that needs unpacking)
We used the Thomson Reuters/Legal Geek Taxonomy, but
The comparative analysis helps reveal the types of ventures with a modification for consumer services (described below) • Personal injury (as consumer services (n.e.c.))
that have been successful and may be successful again
• Real estate (or conveyancing)(as consumer services
and provides deeper insights into unmet legal needs. The Modification to B2C categories explained
(n.e.c.))
dataset used for the LET was analysed and visualised using
The original taxonomy has nine categories in consumer
PowerBI, a Business Intelligence tool by Microsoft. When • Wills, tax, trust and probate (as consumer services
services. But given the renewed importance of B2C
working with time-series data, PowerBI gives users the (n.e.c.))
(addressing unmet legal needs), we adjusted as follows,
ability to ‘forecast’ their visualisations. In this report, we
with some of the nine categories being incorporated into The suggested revised consumer services (n.e.c.) were
have done so when looking at the cumulative growth of
the three level one categories. further classified into:
lawtech companies in the UK.
• Consumer marketplaces (classified as people and • Dispute resolution (criminal defence, personal injury,
The forecasting calculated in PowerBI is accomplished via
resources) employment, many of the ‘legal services’ to get
exponential smoothing. In estimating future data points,
• Criminal defence (as consumer services (n.e.c.)) compensation, etc.)
exponential smoothing gives greater weight to more recent
data. The older the data, the less impact it will have on the • Employment (as consumer services (n.e.c.)) • Conveyancing
forecast. This is best suited to short-term forecasts, where • Family, wills and probate
• Family (as consumer services (n.e.c.))
recent time-based trends might still have an impact. It does
Please find below the guidance notes for level two
categories that classify each of the level one categories
in finer detail.

[Managing the business] People and resources

This label identifies lawtech firms that provide a

marketplace for legal recruitment, legal education and
legal training, alternative resourcing of lawyers or legal
services.

Examples from the company description

- It is a portal on which barristers can present their skills

to the world and where the world, in turn, can find the
exact legal expert they need.

- Get faster results and recruit the right candidate by

requesting all basic disclosure checks through Amiqus.

- We are an award-winning solutions provider for

mitigating compliance risk through captivating and
LawtechUK LTUK Ecosystem Tracker 40

unique employee training with analysis to help you meet This label identifies lawtech firms that offer the services in between your team and internal clients to produce
your organisation’s regulatory compliance obligations. knowledge management (creating, searching and sharing rich data analytics on value delivered and team
knowledge), finding experts, horizon scanning, news and performance.
current awareness, legal analytics, and legal research.
[Managing and/or performing] Risks
[Managing the business] Finance and operations The label identifies services including “correctly identifying
the experts best placed to advise on particular matters This label identifies lawtech firms that help clients manage
This label identifies lawtech firms that help clients manage
in a firm or department, extracting information from various business risks and compliance, such as board
the finance and operations of legal services, including
emails, contracts or other documents, … solving the need governance, cyber security, data privacy compliance,
accounts and billing, pricing and profitability analysis,
to identify, create, curate, search and share knowledge.” expert systems, internal audit, regulatory compliance, and
time/task recording analysis, legal spend management,
(Legal Geek) risk management.
and legal practice management.
Examples Examples
Examples
- I used to wait for days and hours for answers using - Supported by our relationship with key regulatory
- With the built-in visual editing capabilities, you can
traditional legal research tools, but with Casetext, I bodies, Amiqus is continually updated to meet the
ensure that each invoice meets expectations before
can find my best, most on-point case in minutes and latest standards so you can have confidence in your
being sent.
seconds. compliance.
- Clocktimizer helps law firms understand precisely who
- A knowledge centre full of legal commentary and - With data security of critical importance to any
does what, when, where and at what cost.
articles, searchable by potential clients and legal organisation, Luminance’s robust security protocols
- The legal spend analytics and matter management professionals ensure no documentation risks being exposed.
platform that helps in-house legal teams stay in control
- CLAWS’ search technology improves the accuracy and - Real-time behavioural data analysis, delivering fraud
of their spending and build trust with external counsel.
speed at which you can find relevant case law. reduction while securing payment and banking systems
[Managing the business] Clients and user accounts.
[Managing and/or performing] Matters
This label identifies lawtech firms that help their end users [Managing and/or performing] Rights management
This label identifies lawtech firms that offer services in
manage client relationships, such as business development,
legal case/records management, collaboration tools, This label identifies lawtech firms that offer services in IP
client bulletins, client onboarding, customer relationship
legal matter intake/triage, legal project management, filing, IP search and monitoring, and IP rights management.
management (CRM), and conflicts management.
and planning.
Examples
Examples
Examples
- Cut through complexity with rapid, accurate research
- Because, before Law Ruler, law firms had to purchase
- Our easy-to-use workspace brings all your documents tools for the clearance and monitoring of intellectual
separate case management and legal CRM systems.
together so that you can switch between documents, property.
- VCU enables you to onboard customers effortlessly, highlight vital information, make notes and create links
- An expert solicitor with experience and a successful
perform all necessary anti-money laundering between files, all on one platform.
track record in securing trademark approvals was
compliance checks and handle even complex due
- Vizlegal makes legal information accessible. Search, hand-picked and charged at a fraction of the cost of a
diligence investigations instantly.
track, save and analyse cases, trademarks, judgments, traditional trademark and IP Solicitor.
- Legal professionals can update existing clients at the filings and other legal data.
- We look at the basis for the techniques outlined in the
click of a button.
- Manage the thousands of matters passing through patent claims and determine which companies would
[Managing and/or performing] Knowledge your department each year. Automate the interactions be the most likely prospects to acquire a license to
LawtechUK LTUK Ecosystem Tracker 41

the patent. resolution. conveyancing journey into a simpler process, providing

consumers with a clear understanding of what actions
[Performing work] Documents and contracts *eDiscovery refers to the process of discovering, collecting, and
they need to take. On the other side, in-house lawyers
preserving electronically stored information pertinent to legal
This label identifies lawtech firms that help clients manage cases and investigations.
handle the legal aspects of the home move.
documents and contracts, including contract/document
**eFilings refers to filling in legal documents electronically. [Consumer Services] Family, wills and probate
analysis, contract negotiation, contract completion,
document automation, document management, document This label identifies lawtech firms that offer services in
Examples
review, drafting support, obligations management, and criminal defence, personal injury, employment dispute, and
contract lifecycle management. - The Sentinel System provides a low-cost, highly effective other services that result in obtaining compensation.
alternative with the power to autonomously resolve
Examples Examples
nearly any type of covenant breach.
- Quickly extract the essential points of a document into a - Leverage our settlement wizard to gain the upper hand - amicable is the trusted legal service for divorcing and
summary for your entire team to view. in negotiations and maximise your client’s payouts. separating couples, with online resources and services
to separate couples’ finances or making arrangements
- Avvoka’s end-to-end contract automation tool will keep - Receive alerts on new court activity with filings
for their children.
you and your contracts happy. attached.
- Contractpedia will remind you before it’s too late, and - With our very own calendar feature, you can manage
the contract is renewed automatically critical case dates and easily integrate them with your
other calendar apps.
[Performing work] Transactions (including M&A)

This label identifies lawtech firms that facilitate [Consumer Services] Dispute resolution
transactions, including conducting due diligence and This label identifies lawtech firms that offer services in
providing transaction platforms. criminal defence, personal injury, work claims, employment
Examples dispute, tenant disputes, and other services that might
result in paying/obtaining compensation.
- Analyse key legal documents in the real estate
transaction pipeline for risk instantly and without any Examples
training required. - The firm might offer automated calculation of accident
- We’re building an automated solution for property compensation, with a lead to contacting human lawyers
diligence to make transactions more efficient and to represent a claimant.
transparent for everyone.
[Consumer Services] Conveyancing and real estate
- thedocyard is a deal management platform designed
This label identifies firms that offer conveyancing and
to run every stage of a transaction, from due diligence
related services involving the transfer of legal title of real
through to closing in one solution.
property from one person to another or the granting of an
[Performing work] Litigation encumbrance such as a mortgage or a lien.

This label identifies lawtech firms that offer services in Examples

litigation, including eDiscovery*, eFilings**, evidence
- Juno utilises its dashboard software to turn the
management, litigation analytics, and online dispute
LawtechUK LTUK Ecosystem Tracker 42

Lawtech
education
programmes
Our programmes are designed to support 12 weeks, featuring talks and workshops from industry experts.
Meet your cohort, learn from interactive group discussions, and
lawtech founders from ideation to scale, as
take your lawtech startup to the next level.
well as organisations interested in harnessing
the benefits of innovation for their legal Lawtech Scaler
operations. All education programmes are free. Lawtech Scaler is designed to help lawtech startups scale
successfully, all for free. Our cohorts will learn how to turn early-
You can find full details at
stage traction into a commercially successful business, covering
www.lawtechuk.io/our-programmes key topics like business strategy, sales, and growth mechanisms.

Are you a lawtech startup founder with a software product in

Lawtech Mentoring the market? Are you ready to take your business to the next
A series of four one-on-one sessions with a specially matched level? Our Lawtech Scaler programme is here to support you.
industry expert, designed to provide budding lawtech
entrepreneurs with the support you need to turn your idea into a
Lawtech Bridge
successful business. And, it won’t cost you a penny.
Lawtech Bridge brings startups and legal market players
together to explore approaches to innovation. By coming
Lawtech Fundamentals together, the legal industry can benefit from sharing
Designed to help every budding lawtech founder at the very technologies, cutting-edge ideas, and frameworks for
start of their journey. This self-paced, online course is entirely collaboration.
free and here to support you to develop the key skills you’ll need
Whether you’re building innovative solutions or looking to adopt
in the earliest stages of your startup journey – whether that’s
them, Lawtech Bridge will give you the space to focus on your
getting you closer to your lightbulb moment, or helping you turn
role in legal innovation – alongside a cohort of founders and the
your idea into a reality.
legal industry with the same ambitions.

Lawtech Builder
A LawtechUK programme designed to help lawtech startup
founders launch an MVP to market. Benefit from 10 sessions over
LawtechUK LTUK Ecosystem Tracker 43

LawtechUK The LawtechUK Panel was established in 2018 by the Secretary of State for Justice.
It consists of leaders and experts from the public and private sectors who act as the

panel advisory board to LawtechUK.

Christina Blacklaws Sir Geoffrey Vos Richard Susskind Mimi Zou

(Chair)

Stephen Browning Sarah Green Maya Markovich Katie Atkinson

Isabel Parker Chris Grant Brian Liu Sophia Adams Bhatti

LawtechUK LTUK Ecosystem Tracker 44

Thanks to our
contributors
Mari Sako
Professor of Management
Studies, University of Oxford

Jimmy Vestbirk
Founder

Christina Blacklaws
LawtechUK Panel Chair

Beth Fellner
Director

Henry Sturm
Head of Digital Programmes
& Clinics, LawWorks

Sarah Chidlow
Project Manager

Joanna Goodman
Tech Journalist and Author
Thank you