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[fa icon="calendar"] Feb 4, 2016 4:00:00 PM / by Lily Bruns

Evolve Law's "Darwin Talks" are 5 minute presentations from lawyers and LegalTech entrepreneurs aimed to stir thought and provoke discussion about change and innovation in the legal industry. On February 4, Allegory founder and CEO, Alma Asay, was invited to speak at an Evolve Law event focused on funding in legal technology.

Panelists at the event shared their experiences and highlighted the challenges and opportunities of investment funding in an industry that is so different from the typical model venture capital firms are familiar with.

For her talk, Asay discussed "6 Reasons Why LegalTech Companies Should NOT Take VC Money:"

  1. Professional investors are looking for quick returns - not a good match for the sales cycles of the legal industry.

  2. Fundraising steals time away from sales and growing the core of the business.

  3. Less rigid oversight gives the company flexibility to try new things.

  4. Giving away equity dilutes your stake, and for lawyers who left a good salary to build a start-up, that can be an especially bitter pill to swallow.

  5. Not being answerable to investors who have mainstream views of what makes a successful entrepreneur means you can be you while growing your business.

  6. There may simply be no need since those who've had successful careers in the legal industry tend to have the connections to secure alternate funding - their age and experience can also make them better at managing the resources they do have.

You can read more about Asay's Darwin Talk and the accompanying panel discussion here.

 

Topics: Alma Asay, Darwin Talk, Entrepreneurship, LegalTech, Evolve Law

Lily Bruns

Written by Lily Bruns

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