There’s always a splash when an elite firm announces a partnership with a new legal technology firm. But as we discussed on Legaltech Week last episode, there are pitfalls with firm partnerships. Big firms can see the product as their proprietary tool and impede development by driving innovation toward their own parochial needs. With all the fanfare, a company just might set themselves up with a pair of golden handcuffs.
But products aren’t getting anywhere without user feedback. Perhaps the answer is the oft-overlooked mid-market.
This idea really hit me while catching up with Will Norton of SimplyAgree during the Legalweek virtual festivities. SimplyAgree rolled out version 2.0 of its deal management tool in October and it already appears to be taking off like gangbusters, with December seeing the company’s biggest month of activity with about double the engagement. As one might expect, all the credit goes to the feedback the company gathered from its earlier release and constant engagement with users to find out what people want and to probe them with questions like, “But if we built this again from scratch, how should it look?”
Every time I talk to Norton, he makes a great counter-intuitive point. Over the summer, he told me that, even though it seems more labor-intensive, the company had stepped up individualized trainings rather than stick with the usual group setting during the pandemic because they were getting better engagement and adoption from more one-on-one remote trainings. Which makes a lot of sense but was certainly not what I expected to hear in a world where technology is applauding its mass collaboration tools. So I was ready for the unexpected take in a world where tech companies are always trumpeting their sexy initial investments from Biglaw heavies.
“If I were advising another startup I’d say start with Am Law 200 firms who will keep working with you on the product to get it better,” Norton said. “You can have closer connections and relationships with chief technical officers and partnership.” It makes a lot of sense. For a big firm to take a chance on a new product it’s naturally going to take some measure of control that tech companies may not be ready to cede. Small firms offer a lot of feedback, but if the users aren’t technically savvy themselves it may not translate into something that can drive the product forward. But mid-market firms may be a Goldilocks zone of tech development with dedicated IT professionals on staff to partner with, but not big enough to think they automatically own the process.
For Simply Agree, the expansion into the big firm world is underway, but relationships with mid-market firms remain invaluable as the transactional side undergoes a philosophical transformation with attorneys moving away from delegation and embracing more direct control of the whole process through tech.
There’s not a single path to innovation in any space, let alone the legal market. Maximizing revenue streams with big ticket commitments may work for some and it may burn others. Padding the coffers with venture capital money may ease the path to success for some while leaving others beholden to short-sighted masters. Monitoring a company’s path can shine a light for another aspiring product, but it can also help clients figure out exactly what kind of product they’re buying.
And a product that proved itself in the mid-market makes a compelling sales pitch.
Joe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.