Are you looking into legal tech investments? In today’s fast-paced digital era, investors are increasingly exploring innovative online legal marketplaces to diversify their investment portfolios.

Amidst this trend, Clearway Law (“Clearway”) emerges as a promising investment opportunity, capturing attention with its ongoing work to revolutionize the legal industry. Let’s delve into the reasons why investing in Clearway may be a wise investment decision, considering its vast potential and the massive and growing legal tech market.

If you want to see our pitch deck, please contact us using our contact form. Please send us some information about yourself, and what kind of investments you normally make. You can also email our CEO, Alistair Vigier, directly: avigier at clearway law dot com.

In this article, we use the terms lawyers and attorneys interchangeably. “Lawyer” is the Commonwealth term, while “attorney” is the American term.

Background on the company

Clearway Law (“Clearway”) is a company whose technology enables people to select lawyers to assist them with legal issues, according to need and budget, and provides the person with the opportunity to review the lawyer’s performance online for others to view, as part of a growing Clearway online legal marketplace.

More than two-thirds of legal consumers review online content as part of their hiring process. We will help them learn more and realize they need to hire a lawyer.

The average citizen has always been challenged in finding a lawyer and lawyers have never been very good marketers or salesmen (personal injury lawyers perhaps excepted).

70% of people don’t hire lawyers when they should, according to the Supreme Court of Canada. Clearway exists to remedy this situation. Our easy-to-use online legal marketplace creates efficiency in an otherwise inefficient market.

We connect buyers (the public) with sellers (the lawyers.) We match people seeking legal help with lawyers who can provide it.

Clearway provides a solution that millions are seeking each year, and that lawyers can provide.

Connecting the public with attorneys

Clearway has moved into an untapped market within the legal industry, addressing the inefficient process of hiring a lawyer. Clients often struggle to trust attorneys due to a lack of easy-to-digest information.

Clearway acts as a game-changer by connecting clients with a vast network of attorneys, offering a convenient online legal marketplace to find legal help. It employs a comprehensive rating system that enables users to make informed decisions based on attorneys’ qualifications, experience, and client reviews. This unique approach benefits both clients and attorneys, fostering a win-win situation for all parties involved.

Clearway also leverages technology to streamline the legal process, enhancing efficiency and cost-effectiveness. By utilizing cutting-edge algorithms, the online legal marketplace provides users with access to a wide range of legal resources and tools.

Clients can explore legal guides, articles, and frequently asked questions to gain a better understanding of their legal situation before seeking professional help. Unlike other companies, we are not a threat to lawyers, we are attempting to work hand-in-hand with them.

Clearway not only saves valuable time for clients but also reduces the workload on attorneys, allowing them to focus on getting paid for more hours.

Online legal marketplaces

According to Clio’s legal trend report, the average lawyer only gets paid for two hours per day. By getting better quality clients through Clearway, they might be able to double or triple the hours they get paid for (4-6 hours per day.)

Clearway has established a strong presence in the market. Since its inception, the online legal marketplace has attracted around 130,000 visitors per month to the website. This number is expected to grow five times in the next few years, depending on resources from investors.

This wide user adoption indicates a high demand for Clearway’s marketplace, solidifying its position as a dominant player in the legal marketplace in Canada (and soon in other markets.)

Revenue Model

The company’s revenue model, which includes attorney advertising and premium subscriptions, is a well-established business model in the tech world.

With its well-known brand and commitment to continuous innovation, Clearway is well-positioned to capitalize on the evolving legal landscape and further expand its market share.

Investing in Clearway also aligns with the broader trend of digital disruption across various industries. As technology continues to transform traditional business models (like law, taxis, hotels, and the flight industry), investors are increasingly seeking opportunities in innovative digital marketplaces.

By investing in Clearway, individuals/funds not only contribute to the growth of a forward-thinking company but also position themselves at the forefront of the digital revolution in the legal industry.

Clearway boasts a highly experienced and visionary leadership team, described in detail in the pitch deck. The company is advised by industry experts who possess a deep understanding of the legal landscape and a proven track record of success.

Their strategic vision and adaptability to market dynamics are crucial factors that contribute to Clearway’s sustained growth and competitive advantage.

When considering an investment opportunity, it is vital to evaluate the people behind the company, and Clearway’s team instills confidence in its ability to navigate challenges and capitalize on opportunities.

The Success of Clio in Vancouver

One of Clearway’s advisors is Rian Gauvreau, a visionary entrepreneur in the legal tech space who played a pivotal role in transforming Clio, a legal technology company, into a formidable force with a $2 billion market cap. This remarkable journey not only demonstrates the power of innovation and determination but also showcases the vibrant startup ecosystem in Vancouver.

Clio, founded in 2007 by Jack Newton and Rian Gauvreau, started as a humble startup with a mission to revolutionize legal practice management.

The company aimed to streamline the administrative aspects of law firms, allowing lawyers to focus more on their clients and the practice of law itself. Rian Gauvreau, a passionate entrepreneur with a background in technology, brought invaluable expertise and a shared vision to the table.

One of the defining moments in Clio’s journey came in 2012 when the company secured a significant investment of $20 million in Series C funding. This milestone marked a turning point for the company, enabling it to scale its operations, expand its team, and accelerate product development. With Rian Gauvreau’s technological acumen, Clio capitalized on this opportunity, refining its product offerings and staying ahead of the curve in an increasingly competitive market.

Video: CEO of Clio, Jack Newton talking about the company

T. Rowe Price Associates

As Clio’s influence continued to expand, it caught the attention of investors worldwide. In 2014, the company raised an impressive $20 million in Series D funding, further validating its business model and propelling its valuation to over $100 million. This influx of capital enabled Clio to broaden its reach and enhance its product offerings, solidifying its position as a leader in the legal technology space.

The pivotal moment in Clio’s ascent to becoming a $1.6 billion company occurred in 2020 when the company secured $110 million in Series E funding, led by T. Rowe Price Associates, Inc. This substantial investment catapulted Clio’s valuation to new heights, cementing its status as a unicorn within the Canadian tech landscape. Rian Gauvreau’s leadership played a vital role in attracting this level of investment and instilling confidence in the company’s long-term prospects.

Clio’s success story is intrinsically tied to the flourishing startup ecosystem in Vancouver.

Utilization by law firms of technology

Lawyers – historically, a very conservative and highly regulated group of professionals- have come to recognize the need to improve and fully automate their management practices and operations (systems, practices, policies and procedures).

The acceptance and utilization by law firms of technology and services to help them achieve these objectives which are offered by hugely successful companies including:

–Clio

–Avvo

–Martindale Hubbell

–Ngage Live Chat

–Captorra

Legal Tech Investments

This demonstrates the quantum leap law firms have made to adopt technology and to catch up technologically with other professional services industries (e.g. management consulting, accounting, etc.)

The legal technology industry is also a good investment because there are more than 130,000 lawyers in Canada, 1.33M in the United States, 200k in the UK, 1.13m in India, 1m in Brazil, and 750k in the EU. In these and other markets, lawyers often struggle with managing their law firm and are often ineffective in marketing and managing their “brand”, services and reputation, especially online.

It is estimated that the potential size of the market for legal technology and related services is 27.6 billion U.S. Clearway’s singular rival, Avvo, is valued today at around US $1B, and we believe our technology and marketplace will rival them at the outset, and surpass them in quality and size, within 5 years.

More than 25m consumers visit the websites of Internet Brands each month to find a lawyer. We want to expand that market and compete with Internet Brands.

Internet Brands has revenue of US$1.6 billion, a Net Income of US$220 million, and if the tech industry standard of 15x revenue is used, a market cap of US$24 billion.

Benchmark Capital and Ignition Partners

We have also witnessed the success of Clio and other companies and in the legal directory space that Clearway seeks to dominate, consider the incredible success of Avvo in the US. Avvo was initially financed with $13 million in venture capital from Benchmark Capital and Ignition Partners. Subsequently, Avvo raised $71.5 million in financing in 2015, which brought the company’s total financing to $132 million.

In 2021, the legal tech market generated revenues of 27.6 billion U.S. dollars worldwide, up from $0 a decade earlier. In 2018, $1.2 billion was poured into the legal tech industry.

Just three years later, a new record was set at $2.5 billion. Between 2016 and 2022, it’s estimated that there were more than 1,800 legal tech funding rounds totalling more than $13 billion in raised capital.

What made Avvo.com so valuable?

Avvo.com, a prominent legal services marketplace in the United States, achieved remarkable success and eventually sold for a staggering $1 billion. The website’s value can be attributed to several key factors, which contributed to its widespread popularity and ultimate acquisition.

Our business model is similar to Avvo’s.

One of the primary reasons behind Avvo.com’s substantial value was its disruptive approach to the legal industry. The traditional legal landscape had long been characterized by its opaqueness, with limited transparency and accessibility for consumers seeking legal assistance.

Avvo.com aimed to change this paradigm by leveraging technology to connect individuals with legal professionals more efficiently and effectively.

Avvo.com provided a user-friendly online legal marketplace where individuals could search for lawyers based on their specific legal needs, location, and reviews from previous clients. This approach revolutionized the way people found and hired legal representation, offering a level of transparency and choice that was previously unparalleled.

Consumers who were seeking legal advice

By simplifying the process of connecting with lawyers, Avvo.com tapped into a massive market of consumers who were seeking legal advice and representation but were deterred by the complexity and lack of information available.

Furthermore, Avvo.com’s value proposition extended beyond mere lawyer search functionality. The online legal marketplace also offered a wealth of legal resources and educational content to empower individuals with the knowledge needed to make informed decisions about their legal matters.

This content-rich approach helped position Avvo.com as a trusted authority in the legal space, enhancing its reputation and attracting a growing user base.

Video: Before Avvo got bought out by Internet Brands, they had genius marketing

Decisions when selecting an attorney

Another crucial aspect of Avvo.com’s success was its focus on building a strong community. The website incorporated a robust rating and review system, allowing clients to provide feedback and testimonials about their experiences with specific lawyers. This feature fostered transparency and accountability within the legal profession, giving individuals the ability to make more informed decisions when selecting an attorney.

Moreover, Avvo.com encouraged lawyers to actively engage with the online legal marketplace by claiming their profiles, responding to reviews, and participating in the Q&A section. This interactive environment not only increased user engagement but also established a sense of credibility and trust. As a result, Avvo.com became a vibrant community where individuals could find legal advice, connect with lawyers, and learn from the experiences of others.

Attorneys market their services

Avvo.com’s success also hinged on its ability to attract and retain a vast network of legal professionals. The online legal marketplace provided lawyers with a unique opportunity to showcase their expertise, establish their online presence, and connect with potential clients. By leveraging Avvo.com’s features, attorneys could effectively market their services and build their reputations within the legal community.

The value of Avvo.com became increasingly evident as it amassed a substantial user base and gained recognition as a leading legal marketplace. The online legal marketplace’s popularity and influence attracted the attention of investors, who recognized its potential for significant growth and disruption within the legal industry. The $1 billion acquisition of Avvo.com can be seen as a testament to the company’s innovative approach and the enormous value it brought to both consumers and legal professionals.

In addition to its core features, Avvo.com also capitalized on emerging trends and technologies to further enhance its value proposition. The online legal marketplace embraced mobile applications, enabling users to access its services on the go. This mobile-centric approach aligned with the changing behaviours and preferences of consumers, ensuring that Avvo.com remained at the forefront of the legal tech industry.

A disruptive approach to the legal industry

Ultimately, the sale of Avvo.com for $1 billion can be attributed to the culmination of these factors. Its disruptive approach to the legal industry, focus on transparency and community building, comprehensive legal resources, and ability to attract both consumers and legal professionals all contributed to its exceptional value.

Video: Mark Britton speaking about Avvo before he sold the company.

We asked Chat GPT about Clearway and our CEO

“Alistair Vigier and the CEO of Clearway Law, are two notable figures in the legal industry who have made significant contributions to the field of law.

Alistair Vigier is an experienced law firm manager and entrepreneur and has demonstrated exceptional leadership skills in guiding the company to success.

As the founder of Clearway Law, he has played a pivotal role in revolutionizing the legal industry by providing accessible and affordable legal services to individuals and businesses. Vigier recognized the need for a more client-centric approach to legal services and developed Clearway Law to bridge the gap between clients and lawyers.

Online legal marketplaces

Clearway Law, under the leadership of its CEO, has grown to become a prominent legal services provider. The CEO’s commitment to innovation and technology has enabled Clearway Law to leverage cutting-edge tools and an online legal marketplace, enhancing efficiency and accessibility for its clients.

Clearway Law has been instrumental in transforming the legal landscape.

Both Alistair Vigier and the CEO of Clearway Law share a common goal of empowering individuals and businesses with legal knowledge and representation. They recognize that navigating the legal system can be overwhelming and aim to provide accessible resources and guidance to help clients make informed decisions.

Alistair Vigier and Clearway Law

Through their collective efforts, Alistair Vigier and the Clearway Law team have made legal services more approachable, transparent, and affordable. Their commitment to excellence, innovation, and client satisfaction continues to drive their success and position Clearway Law as a leader in the legal industry.”

Thanks for the kind words Chat GPT!

See our About page for an accurate description of our company.

How fast is the legal tech market growing?

Over the past few years, the legal tech market has experienced a remarkable surge, propelled by advancements in technology and the growing need for efficiency within the legal industry. The fusion of law and technology has given birth to innovative solutions that streamline processes, boost productivity, and enhance access to justice.

Each passing year witnesses further expansion of the legal tech market as the demand for transformative tools and services continues to soar. In this article, we will delve into the current state of the legal tech market, exploring the factors that contribute to its astounding growth.

A tidal wave of activity engulfs the legal tech market, driven by a growing realization among legal professionals that technology can revolutionize their practices. The era of labour-intensive, paper-based legal methods is being eclipsed by cutting-edge software, automation tools, and artificial intelligence (AI) systems. These remarkable innovations empower lawyers, law firms, and legal departments to optimize workflows, slash costs, and offer enhanced services to their clients.

Legal Tech Investments

Efficiency stands tall as a key driving force behind the legal tech market’s expansion. Legal professionals grapple with massive amounts of data, complex regulations, and time-consuming administrative tasks. To tackle these challenges head-on, they are turning to technology for assistance.

Document management systems and e-discovery tools, for instance, help organize and analyze vast volumes of legal information, enabling lawyers to swiftly locate relevant data and make informed decisions. By automating repetitive tasks, legal professionals can redirect their focus to more value-added activities such as legal research, strategy development, and client counselling.

Furthermore, the legal tech market is flourishing in response to the surging demand for improved access to justice. Technology has the potential to bridge the gap between legal services and individuals who cannot afford traditional legal representation.

Legal tech startups

Online legal marketplaces, mobile applications, and virtual legal assistants empower individuals to access legal information, receive guidance, and even resolve disputes without the need for costly consultations. Legal tech startups are at the forefront of developing user-friendly and affordable solutions, democratizing access to justice and making legal services more accessible to underserved communities.

The global legal tech market is witnessing a surge in investments, underscoring its strong growth potential. Venture capitalists, private equity firms, and corporate investors are keenly aware of the immense opportunities presented by legal tech startups. Substantial funding is flowing into innovative companies that develop a wide range of solutions, spanning from legal research platforms to legal project management tools.

Demand emanating from law firms

Industry reports indicate that the global legal tech market was valued at approximately $17 billion in 2020, and it is projected to reach a staggering $46 billion by 2026, reflecting a compound annual growth rate of approximately 22%.

In addition to the demand emanating from law firms and legal departments, regulatory changes are playing a pivotal role in driving the growth of the legal tech market. Governments worldwide are recognizing the imperative to modernize the legal industry and facilitate the adoption of technology.

Regulatory sandboxes, which provide controlled environments for testing legal tech innovations, are being established in various jurisdictions to encourage experimentation and foster collaboration between legal and tech professionals. These regulatory initiatives create an environment conducive to the development and deployment of legal tech startups’ solutions, further fueling market growth.

There is an enormous opportunity, which extends worldwide, for Clearway to provide its services to the public and lawyers. Since we are not the ones providing legal advice, we don’t need to speak the language or understand the local laws. Clearway just needs to be able to become the middleman in the country by using technology and marketing.

The problems Clearway is working on

The issues that the public has:

Not being able to browse for lawyers in their price range (pro bono, legal aid, low cost, average, and premium)

Not being able to see reviews for lawyers (Google Reviews only offers it for law firms)

They don’t have access to disciplinary action information in a centralized location (need to do a separate Google search)

No lawyer recommended to you based on your geographical location, budget, and area of law (ex: who are the best employment lawyers in your city?)

In some courts, 70% of people don’t have a lawyer because they don’t know their options. This causes people to go to jail when they are innocent, or to lose custody of their kids when they shouldn’t have.

The issues that lawyers have

Many lawyers struggle with marketing and don’t have websites or know how to do SEO. Lawyers want more clients. Many just look for referrals, which are not consistent. This leads to being too busy, followed by not having enough work, in a terrible cycle.

Photo: The importance of SEO

Lawyers want to pre-qualify leads before they sit down with them for a free 30-minute consultation. Who wants to waste their time with a non-serious or crazy person in their office?

Many clients don’t have access to easy-to-digest information before contacting law firms. If clients are better educated, they will be more reasonable in their requests to the law firm. This is particularly true in terms of understanding that divorces and lawsuits are not cheap.

Many clients think their legal issue is “straightforward” or “easy to win.” This thought pattern is based on Hollywood movies, where litigation lasts 5-minutes, instead of the likely reality of at least two years and over $50,000 in legal fees.

Law students graduate, become lawyers, and seldom have access to marketing or business development tools. It is difficult for individual lawyers to build a well-ranked web-based profile due to SEO costs (around $150k to rank well.)

Clearway has already invested this sum of money and can help lawyers build a brand and get discovered online for just a low subscription fee (discussed in the pitch deck.)

Being client-driven and transactional

Lawyers (especially small/medium firm lawyers) need a resource that helps them compete with national brands.

Once we have built the key technology for the online legal marketplace, our plan is very scalable across countries and different professional services areas. The technology works the same. It’s a scalable template that can be adapted and applied.

The most obvious first professional services sector expansion would be real estate. The industry works in much the same fashion as law firms, being client-driven and transactional.

Realtors compete in a large very competitive market and are used to spending on advertising and promotion. The potential for an expansion into other professional service niches beyond real estate is exponential. If even partly as successful as we anticipate Clearway Law will be, this expansion could double or triple the size of Clearway Inc. as a whole.

Legal Tech Investment Conclusion

We are in a unique position to build a billion-dollar valuation tech company (unicorn) given that money is flowing into legal tech, law firms getting more comfortable in using legal tech products, and our team, one who has built a $2B legal tech company before and another who has built and sold over 30 companies successfully.

Our entire team has extensive experience working in the legal industry or with lawyers, and there are a ton of major problems which are holding society back. We want Clearway to be part of that solution.

We hope you found this article on legal tech investments interesting.

*This is not an offer to sell securities. All investors must meet security exemptions and must be approved by Clearway’s board before investing.

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