Like other industries that embrace contract work, Lawtrades offers legal professionals a way to become independent and run their own virtual law firms.
Raad Ahmed and Ashish Walia started the business in 2016 by initially focusing on startups and small businesses, trying to find a product to fit the market (as it is being done), but finding that legal use among businesses of this size was often project-based, infrequent, and short-term if the business goes down.
In 2019, the company turned to working with midsize businesses and enterprises selling to legal services, and that’s when growth took off, Ahmed told TechCrunch.
Today, Lawtrades works with companies, like Doordash, Gusto and Pinterest, to offer them a marketplace of professionals who can be hired remotely and with flexibility. Its technology allows professionals and companies to create profiles and be put in touch with opportunities, to follow projects and to pay via the platform.
“At the end of the day, it’s a new, native Internet working model that we’re starting with the law because it’s a $ 100 billion market that hasn’t been disrupted much in the past 100 years.” Ahmed said.
He and Walia wanted to create a different hiring experience than LinkedIn, where companies would have to sift through hundreds of candidates to find the qualified few. Professionals are also able to offer a flat rate pricing structure, unlike law firms which have overhead and other firm costs that are typically factored into billable hours.
After doubling its revenue in 2021, it closed a $ 6 million Series A funding round, led by Four Cities Capital, with participation from Draper Associates and 500 startups. The round also included nearly 100 clients, angel investors and business founders, including Gumroad founder Sahil Lavingia, Ankur Nagpal of Teachable and GoDaddy CEO Aman Bhutani.
“As the world is finally embracing remote legal work and more lawyers are leaving large law firms to work for themselves, we have positive cash flow and leverage. income-based financing, so we did not have to carry out a significant dilutive capital increase. Ahmed said.
At the end of 2021, Lawtrades had 80 clients on the platform and 150 active commitments. On the talent side, there are more than 1,000 profiles, against 400 created at the end of 2020. Currently, it operates on an invitation-only model, and 5% are accepted in the network. The composition of the network is 60% women and more than 35% are minorities.
In December, the company’s revenue was $ 8 million, up from $ 3 million at the start of 2021, Ahmed added. Over $ 11 million has been earned on the platform to date by the network and over 60,000 man hours have been logged on the platform in 2021, a 200% increase from 2020.
Ahmed plans to use the new funding to rename the company, launch an iOS app, expand into other professional categories, such as finance and management consulting, and gain an international footprint. He also intends to double the current Lawtrades workforce from 15 to 30 for products, support and sales.
“The world of work is in a unique position,” he added. “People are working remotely and companies are looking for talent, so it’s an all-out war for talent with the best people getting the best deals. With our model, the individual has the power to choose the type of work they want to do. This is how we can attract amazing talent and then be able to get companies that want to hire them. We reiterate and push back the limits of the 40 hour work week.