Some law firms are beginning to embrace legal technology not just in their offices, but also in their business models by investing in legal tech startups to bolster and share in their success. But for many firms, legal tech investment still isn’t seen as a viable option. And it’s not because of corporate or professional hurdles, but, instead, a lingering industry-held belief that ownership in tech startups is too risky.
To be sure, law firms aren’t averse to creating a limited liability corporation or other legal structures to invest in a legal tech company. Instead, the risk of diverting from proven business tactics hinders most firms from investing in legal tech startups, said Baretz+Brunelle new law practice partner and co-head Brad Blickstein.