Fundraising for legal technology startups doesn’t necessarily map well onto the traditional funding structures favored among Silicon Valley “unicorns.” Venture capitalists, or professional startup investors, infuse millions of dollars daily in tech startups with promises of growth and big returns. Legal markets, however, have posed difficulties unusual to this model, in turn pushing some legal technology startup founders to look beyond common funding sources to individual investors for financial support.
For example, Alma Asay, founder of Allegory Law, closed a $500,000 convertible debt fundraising round a couple weeks ago primarily by tapping her networks. Though Asay managed to circumvent the traditional venture capital-led fundraising approach, it was not for lack of trying.
