$1.2 Billion in Cash

First Half of 2018 Legal Tech

First Half of 2018 Legal Tech Raised $1.2 Billion in Cash

First Half of 2018 Legal Tech Raised $1.2 Billion in Cash 1024 417 Raymond Blijd
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In the first half of 2018 Legal Tech raised $1.2 billion in cash. If that isn’t crazy enough, we are ignoring a possible $3.7 billion raised with initial coin offerings (ICO). We previously discussed those blockchain startups impacting legal but we didn’t talk about the elephant.

What’s more amazing is that we are only half-way 2018 but surpassed the amount raised in all of the past 3 years combined. Bear in mind, @Legalpioneer also registered 6 undisclosed rounds by private companies this year and we aren’t perfect so we could have missed others.

Year Total rounds raised
2017 $385 million
2016 $280 million
2015 $366 million
Total  $1.03 billion

A little nuance: some of the larger rounds were debt financing which is a bit odd but not unusual. The other concern is that seed financing in 2018 is trending downwards compared to previous years. It seems Venture Capital (VC) is more attracted to mature Legal Tech.

Year # startups receiving seed or angel funding # startups receiving later stage funding
2018 10 25
2017 28 48
2016 39 40
2015 23 31
2014 27 13

The Elephant

Also note: RiskTech startups grew not only in numbers mainly nudge by GDPR, their funding generally did as well.  Check out the huge rounds by privacy apps Signal and Orchid lab. Both dwarfed by the elephant called Telegram which raised a ridiculous ICO of $1.7 billion.

We still have 6 more months in 2018 but it seems we all value a fair society a little bit more these days.