Legalist, a FinTech startup and Y Combinator alumni, has just announced that it has completed a $100m venture round to help people finance their lawsuits.
Litigation finance essentially means that companies and private people can fund plaintiffs and law firms in cases where it looks like they are going to win. If they do, then the backers can expect good return on their capital injection.
Legalist has set up a platform to enable the people to back cases. Attorneys bring the company cases and then algorithms takes them through the due diligence process. So far it has funded 38 cases, according to an interview with the founders conducted by TechCrunch.
The new $10m round was raised through non-profit endowments, family offices and institutional investors. Legalist plans to use the money over the next five years and expect to fund between 100 and 200 cases.
?Legalist reportedly raised $10m in its maiden fund back in 2017.
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