A groundbreaking investment of £2 million has been secured by South Yorkshire tech firm, FinLegal. This pivotal funding is set to double its workforce and enhance its global presence.
The investment is the first from the Northern Powerhouse Investment Fund II in South Yorkshire, showcasing a significant commitment to regional tech development. FinLegal plans to use this investment to expand its international client base and create 26 new jobs.
Strategic Investment for Expansion
The recent investment in FinLegal marks a major milestone for the Sheffield-based technology firm. This deal is significant as it represents the first allocation from the £660 million Northern Powerhouse Investment Fund II in the region. The funding, sourced jointly from NPIF II – Mercia Equity Finance and Mercia’s own resources, aims to fuel growth within FinLegal, enabling it to tap into international markets. The firm’s unique platform is designed to manage large-scale legal claims efficiently, a feature that has already attracted top legal firms in the UK and Australia.
Innovative Solutions in LegalTech
FinLegal’s platform facilitates better interaction between claimants and lawyers, offering law firms the advantages of automation and artificial intelligence. This innovative approach not only cuts operational costs but also enhances client services, thereby increasing the efficiency of handling legal claims. According to FinLegal, their technology can allow legal teams to process up to six times more claims than traditional methods.
Founded in 2019 by IT expert Steven Shinn, the company has processed over two million claims since its launch. It serves major legal firms like Leigh Day in the UK and Maurice Blackburn in Australia, reinforcing its presence in the global market.
Growth and Development Trajectory
Since its inception, FinLegal has gained a reputation for innovation within the legal sector. The company’s rapid growth was highlighted by its doubling of annual recurring revenue to £1.8 million, with total revenues nearing £3 million as of April 2024.
The investment will bolster FinLegal’s capacity to further develop its product. The company plans to tailor its platform to meet the diverse needs of a growing audience. With the addition of 26 new positions, FinLegal aims to enhance its operational capabilities and service delivery.
Aiming for Global Leadership
CEO Steven Shinn expressed confidence in the future, stating that the claims market is ripe for FinLegal’s technological solutions. He emphasised the platform’s ability to reduce costs while enhancing client care, making large-scale claim management feasible.
With this significant financial backing, FinLegal intends to accelerate its expansion into international markets. The investment is a strategic move to position the company as a leading contender in the global legal technology sector.
Endorsed by Industry Leaders
The Northern Powerhouse Investment Fund II’s support underscores the potential of FinLegal’s approach. Chris Borrett of Mercia Ventures highlighted the company’s rapid acquisition of clients across multiple continents, recognising its impact on productivity within the legal industry.
Simon Cunnington, from the British Business Bank, identified FinLegal as a prime example of how the fund can unlock potential in tech firms. He noted the increasing relevance of AI in transforming professional services, and FinLegal’s role in revolutionising the litigation sector.
Financial Details and Community Impact
The Northern Powerhouse Investment Fund II is a comprehensive initiative covering the North of England, providing crucial financial support to small and medium businesses looking to scale. FinLegal’s funding is a testament to the fund’s commitment to fostering innovation and job creation.
Alongside financial growth, the social impact of this investment is significant. By doubling its workforce, FinLegal aims to play a key role in the economic development of South Yorkshire. This expansion is expected to open new career opportunities and stimulate the local economy.
Future Prospects
As FinLegal embarks on this promising phase of expansion, it aims to leverage its investment to increase its competitiveness in the global market. By focusing on enhancing its platform and scaling operations, FinLegal positions itself well for future growth.
The £2 million investment in FinLegal from NPIF II signifies a powerful vote of confidence in the firm’s innovative capabilities. It sets the stage for substantial employment opportunities and international market expansion. With a strong foundation and strategic vision, FinLegal is poised to become a leader in the legal technology industry.
