The title of a report on TechCrunch.com on August 5, 2014, The Jury Is Out On Legal Startups , appears to say it all. As it describes the current state of this specialized market for technology aimed at supporting law offices as well as benefiting consumers, investments by venture capital investment firms in this sector has fallen rather dramatically thus far in 2014. With just a few exceptions that have received substantial rounds of funding, many other have not fared well in raising money for their operations. I recommend a click through here the full details of this slump including some informative charts and accompanying quotes by experts in this field explaining the difficult dynamics currently affecting this market.
This turn of events and dollars seems to run contra to all of the five far more optimistic and enthusiast posts I have grouped here under the category of Law Practice and Legal Education. These cover different aspects of ongoing innovations in the marketplace for legal services as well as legal education.
Notwithstanding this situation, I continue to remain optimistic about the ongoing prospects for legal startups. There is a vast under-served market for people who need legal services but do not have the funds to engage them. I think it is nearly inevitable that some of these developing systems, services and apps will find a place in this market segment out of pure necessity and the economics of getting things done faster and cheaper. Continuing to monitor this situation will thus likely prove interesting during the next several years. Perhaps there is a legal app yet to be developed that will prove to be so helpful to lawyers and their clients, as has happened in so many other consumer markets, which will act as a genuine tipping point.