Ask HN: Why are there so few law startups?

#1

Post by rsp1984 » Mon, May 11, 2015, 10:40 PM UTC

One could probably find a bunch through a Google search but I couldn't name a startup in the law space off the top of my head. I also don't remember ever seeing one making headlines on HN.

With all the enormous fees and the insane amount of paperwork I'd think it's a space that's screaming for new ideas but from an outside perspective it doesn't seem like there has been much innovation since MS Word... Has anyone got some insight?

Re: Ask HN: Why are there so few law startups?

#2

Post by smt88 » Mon, May 11, 2015, 10:50 PM UTC

There are companies that provide legals docs to startups as a service. These are generally a bad idea to use. For example, I used a popular one a few years ago and got a general, 2-page document. I went to a real lawyer and got a 50-page document that served me well later, when my company needed to liquidate.

One of the problems is that the cost of having a bad legal team (or no legal team) is astronomical. It's far higher than just paying the "high fees".

What kinds of areas would you want to innovate specifically?

Re: Ask HN: Why are there so few law startups?

#3

Post by theaccordance » Mon, May 11, 2015, 10:50 PM UTC

One that I remember coming across is https://www.shakelaw.com/

Cant give insight as to why that industry seems particularly more quiet than others in terms of disruptive business models however

Re: Ask HN: Why are there so few law startups?

#4

Post by wayclever » Mon, May 11, 2015, 10:59 PM UTC

Here are some law startups:

www.hireanesquire.com www.plainlegal.com www.InCloudCounsel.com www.casetext.com

There are quite a few law startups with legal practice SASS offerings, b2c marketplaces, document management. You likely haven't heard of these unless you're a lawyer, and even then it's not likely. How many dental startups are you following? None, I'm guessing.

Re: Ask HN: Why are there so few law startups?

#5

Post by wayclever » Mon, May 11, 2015, 11:00 PM UTC

Here are some law startups:

www.hireanesquire.com www.plainlegal.com www.InCloudCounsel.com www.casetext.com

There are quite a few law startups with legal practice SASS offerings, b2c marketplaces, document management.

Re: Ask HN: Why are there so few law startups?

#6

Post by dragonwriter » Mon, May 11, 2015, 11:01 PM UTC

Startups practicing law (rather than providing law-related services other than legal practice) are difficult given restrictions on the practice of law, including legal ethics rules (e.g., things like ABA Model Rule 5.4(d) [0].)

Also, while in other industries if you break the rules of the industry the corporation pays a fine (which is part of the risk of a startup) and the principals all move on with their lives and livelihoods.

Lawyers who break the rules of their industry can be disbarred. While this doesn't completely stop all move-fast-and-break-things in the field, it does limit the willingness of people in the field to engage in it.

Another factor may be that purchasers of legal services tend to be looking to mitigate risk by purchasing those services, which may make them reluctant to consider novel and unproven models.

[0] http://www.americanbar.org/groups/professional_responsibilit...