Anthony Seale , CEO As CEO of Legatics, I’ve had a front-row seat to a remarkable transformation. Watching our platform’s explosive growth in the US market (+274% increase in US matter openings!) has made me reflect deeply on why British legal tech is making such powerful waves across the Atlantic.
1. The Common Law Connection
The English common law system, known for its strong contractual certainty, has enabled London firms to wield significant global influence. High-value international transactions frequently opt for English law, helping to position the UK as the world’s second-largest legal services market, just behind the US. This shared foundation of the English common law system between the UK and the U.S. facilitates a seamless integration of legal technologies. This environment has fostered the development of technologies that naturally align with U.S. legal practices, easing their adoption across the Atlantic.
Real-world example:
Many UK-based legal tech companies, such as Luminance and Juro have already made significant inroads into the U.S. market. These platforms, initially developed for UK firms, have found traction among U.S. firms looking for cutting-edge solutions to enhance efficiency and compliance.
2. Collaborative Innovation
Our early involvement with Allen & Overy’s Fuse innovation hub exemplifies the power of collaboration. Working alongside practicing lawyers ensured that our product was tailored to real-world needs, bridging the gap between technologists and legal practitioners. London’s leadership in such collaborations is evident, with Chambers and Partners recognizing these efforts in their rankings. This model—where legal tech startups co-develop solutions with top-tier law firms—has proven highly effective in producing practical, lawyer-friendly software.
3. Regulatory Evolution
The UK’s introduction of Alternative Business Structures (ABSs) challenged traditional law firm models, encouraging the inclusion of non-lawyers and technology experts. It posed profound questions: What if legal services could be more than just the partnership of lawyers? What if they could include non-lawyers or technology? This shift has led to a mindset revolution, opening doors to process innovation and technology-driven solutions. Initiatives like Ashurst Advance and Simmons Wavelength exemplify this progressive approach.
ABSs have not replaced traditional law firms, but they have created a fertile ground for legal tech adoption. This forward-thinking regulatory environment has allowed UK legal tech firms to explore innovative ways of delivering legal services.
4. Investment Ecosystem
The UK’s supportive startup ecosystem, bolstered by initiatives like SEIS/EIS tax incentives, has nurtured the growth of legal tech startups. This environment has enabled companies to develop robust solutions that are now gaining traction in the U.S. market.
The US investment perspective:
In recent years, U.S. investors have begun paying attention to British legal tech startups. The combination of a mature UK legal market and cutting-edge innovation makes these companies attractive investment opportunities. These investments see strong expansion potential in the US, the world’s largest single legal market. We’ve therefore seen increased transatlantic M&A activity and VC interest in UK legal tech firms looking to scale internationally – something we experienced firsthand when we took investment from FINTOP, a US VC firm, in 2023.
Crossing the Pond
The shared legal heritage and common law foundation make the U.S. a natural expansion destination for British legal tech companies. Despite global challenges, the demand for innovative legal solutions continues to rise, reflecting a trend of deglobalization.
Legatics is proud to be part of the UK Government’s trade mission to New York and ,Chicago, joining other leading British legal tech companies in showcasing our solutions to U.S. firms and investors. This initiative highlights the growing synergy between the UK and U.S. legal markets, providing an incredible opportunity to strengthen transatlantic collaboration and drive further innovation.
Preparing for Legal Week in New York, I anticipate engaging with many familiar faces, further strengthening the transatlantic ties in legal technology. If you’re a U.S. firm looking to leverage the best in legal innovation, now is the time to explore what British legal tech has to offer.
