What is a legal startup?

Humanity is constantly evolving; this is an inherent factor of its existence. It is becoming increasingly evident, in a connected world where new ways of thinking are constantly being discussed in diverse areas, that production models considered innovative today can become completely obsolete in just a few months. 

In this sense, the reflection of the positivist philosopher Auguste Comte is relevant: "progress is the law of human history, and man is in a constant process of evolution."

Startups reflect this need for constant evolution, as they are characterized by innovation. In other words, it is "a human institution designed for... "

"creating new products and services under conditions of extreme uncertainty" (RIES, 2012).

With this idea, the Brazilian legal system, through LC 167/2019, brought important changes to LC 123/2006 (National Statute of Microenterprises and Small Businesses – the Simples Nacional law) , especially with the insertion of article 65-A, which instituted Inova Simples:

In other words, a “simplified special regime that grants differentiated treatment to incremental or disruptive business initiatives that self-declare as startups or innovation companies” (LC 167/2019, Art. 65-A, Caput). Thus, the legislator, in exemplary action, defined Startup in §1 of the same provision, in verbis:

Art. 65-A…

§ 1 For the purposes of this Supplementary Law, a startup is considered to be a company that 

innovative character that aims to improve systems, methods or models of

business, production, services or products, which, when already existing,

These characterize startups of an incremental nature, or, when related to

The creation of something entirely new characterizes disruptive startups.

These innovative companies can be found in a wide variety of market areas, including education ( edtechs), finance ( fintechs ), agriculture ( agrotechs ), and many others.

In this article, we are presenting some information about companies that seek and are concerned with innovation in the legal world, known as Lawtechs and Legaltechs.

In other words, companies that provide services and/or develop technology-based products related to the legal field.

The goal of these companies is to improve, refine, reorganize, or even alter the ways in which legal relationships occur at various stages. This could include, for example, client acquisition, drafting legal documents, or managing a law firm.

It's important to point out that in Brazil, no distinction is made between the terms Lawtechs and Legaltechs. However, there is a change when the terms are used in their American origin.

• legaltechs This refers to companies that seek to improve and facilitate the day-to-day operations of a law firm, assisting legal professionals in their work.
• Lawtechs These are companies that seek to empower, in a general sense, the general public, ordinary people who do not work and are not part of the legal system.

For didactic purposes, this article will use the term Lawtechs generically, that is, without using the American differentiation.

In this sense, we can list some areas in which these companies operate.

Legaltechs for Legal Content and Education

Platforms focused on aggregating and disseminating legal knowledge, such as case law, template documents, articles, and legal theses.

These platforms are geared towards both the general public and legal professionals seeking accurate information. They typically have user-friendly search mechanisms.

Today in Brazil, among many others, the most widespread is the Jusbrasil platform , a network for sharing information between professionals and academics that brings together the updated jurisprudence of Brazilian courts.

Analytics and Jurimetrics Lawtechs

Analytics , simply put, is the discipline of data analysis. Jurimetrics is the application of this discipline in the context of law.

Through analytical methods and technology, these applications seek to measure and provide support so that legal professionals can make more assertive decisions about the possibilities of each case, making small predictions of outcomes in the judiciary, for example.

In this way, lawyers can reduce risks and increase the likelihood of favorable outcomes for their clients. In this context, we can introduce the Kurier and DeepLegal platforms.

Lawtechs for Management

Lawtech companies specializing in management are among the most widespread in the market today.

Platforms that assist large and small offices in managing deadlines, payments, client acquisition, and various other factors present in the day-to-day operations of an office.

The biggest difference between management-focused Lawtechs and other general platforms like CRMs is their specialization. They are usually developed by technology professionals, assisted by legal professionals who understand and experience the nuances of a law firm.

Aurum and LegalOne are just a few examples of a multitude of constantly evolving platforms.

Legaltechs for Dispute Resolution

Their goal is to empower citizens. They are companies that use technology to create ways for ordinary people (outside the legal field) to resolve their own conflicts.

Also known as private justice platforms, they are still not widely used in Brazil. They are developed online and offer mediation, arbitration, and negotiation applications.

Sem Processo is a startup that connects two parties interested in resolving conflicts privately. Many companies use these technologies because they are faster than the Brazilian judicial system.

Lawtechs for connecting professionals through networks

Lawtech companies that connect clients, legal professionals, and law firms.

Primarily aimed at young lawyers at the beginning of their careers, it is a platform that acts as an intermediary between those seeking legal advice and those who can provide it.

Jurídico Certo is a system that connects professionals seeking employment with companies and law firms.

Legaltechs of Compliance

With the goal of disseminating best practices in ethics, integrity, and compliance with the law, these Lawtech companies develop technological applications that help private and public entities remain in compliance.

With tools designed to streamline companies' day-to-day activities, these technologies assist internal professionals in their work.

An example of a technological application of Compliance is those focused on maintaining adherence to the General Data Protection Law. These tools make the work of privacy professionals, such as Data Protection Officers, faster and more auditable.

Here we can mention OneTrust and Legal Dogma, platforms that help in managing consent and mapping data processing activities.

Conclusion

As can be seen, technology-based companies such as Lawtechs and Legaltechs are a constantly growing reality.

The pursuit of evolution, whether technological or methodological, will always permeate humanity's actions, and has become a reality in a world as traditional as the legal one.

Lawyers, judges, prosecutors, and other legal professionals should take advantage of these moments of technological and informational disruption to stand out from the status quo. This will benefit the justice system as a whole and society in general, leading to more efficient and effective work.

To become a standout professional, it's important to stay informed about relevant information and seek knowledge from the right sources. You can learn more about Compliance, Data Protection, lawtechs, and legaltechs with the IDP's Postgraduate Program in Digital Law , which features highly influential professionals working in the field.

References

COMTE, AUGUSTE. Discourse on the Positive Spirit: Order and Progress. Brazil: Edipro, 2016.

RIES, ERIC. The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. São Paulo: Leya, 2012. Translation: Carlos Szlak.