Sheffield-based LegalTech company FinLegal has secured a £2 million investment aimed at accelerating its international growth and enhancing its innovative platform. The funding, provided by the Northern Powerhouse Investment Fund II and Mercia Equity Finance, will support the creation of 26 new jobs and further development of the company’s services.
Founded in 2019 by IT specialist Steven Shinn, FinLegal’s platform integrates automation and artificial intelligence to streamline the management of class actions and mass claims. This technology has already processed over two million claims since its 2020 launch, demonstrating significant demand and efficacy.
The platform is particularly beneficial in the claims market, which often operates on a no-win, no-fee basis with stringent fee caps, allowing legal teams to handle larger volumes of claims more efficiently.
The recent funding will facilitate FinLegal’s expansion into new markets, with a focus on establishing itself as a global leader in litigation platforms. The company has seen substantial revenue growth, more than doubling its annual recurring revenue to £1.8 million for the year ending April 2024, with total revenue nearing £3 million. This success underscores the platform’s ability to enhance productivity, enabling law firms to manage up to six times more claims than traditional methods.
Steven Shinn’s vision for FinLegal was driven by inefficiencies he observed in the Post Office group action. His expertise in IT allowed him to develop a solution that leverages technology to improve legal processes by reducing costs, automating workflows, and enhancing client care. Shinn emphasised the platform’s capacity to manage claims at an unprecedented scale, which is a key differentiator in the market.
The investment reflects strong investor confidence in FinLegal’s potential. Chris Borrett of Mercia Ventures highlighted the company’s rapid growth and its significant impact on productivity for major law firms globally. Similarly, Simon Cunnington from the British Business Bank praised FinLegal’s innovative use of AI, noting its potential to revolutionise the claims and litigation sector.
The £2 million investment represents a crucial step in FinLegal’s journey, enabling the company to scale its operations globally and continue innovating within the LegalTech industry. With a robust platform, strategic leadership, and strong investor backing, FinLegal is well-positioned to become a dominant player in the global legal market.