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News from Europe, Germany: Rightmart, a legal tech start-up from Bremen, welcomes another strategic investor, with plans to achieve ‘inorganic growth’ using the newly invested capital. This move hints at a potential stir in the legal tech market with emerging exit possibilities.
The €27.5 Million Series-B Financing and Its Goals
Rightmart successfully closed a Series-B financing round, raising a substantial €27.5 million ($30.6M USD). Unlike others who often use such funds to hire more staff, develop products faster, or expand internationally, Rightmart has chosen to use these funds to acquire other legal tech start-ups, indicating the onset of the consolidation phase.
Consumer Rights Focused Strategy
Since its foundation in 2015, Rightmart has focused on consumer rights. According to its founder, Marco Klock, the startup aims to make law accessible to everyone, including those who cannot afford a lawyer. By leveraging technology and digitization, Rightmart plans to simplify the work of lawyers in small-scale cases, making it faster, more efficient, and ultimately more affordable.
Benefiting from Technological Platforms
With their ‘technological platform’, the founders can create a ‘structured database’ which allows them to automate legal processes. They also envision other lawyers benefitting from this in the future. In addition to acquiring other legal-tech startups, Rightmart plans to collaborate with other law firms to accelerate growth through a roll-up strategy, ultimately aiming to build ‘the most prominent and well-known law firm brand for consumer rights’.
Serving the Small Men and Women
Rightmart addresses issues in the field of rental, banking and capital market, insurance, and traffic rights. Their efficiency model works best in cases where many individuals are affected by the same injustice – such as the VW Diesel scandal, issues with Wirecard, incorrect HartzIV decisions, and increased health insurance contributions.
The company operates several platforms like Dieselskandal-helfer.de, mehrbuergergeld.de, and Hartz4widerspruch.de. ‘We always represent the little ones against the big ones,’ says Klock, referring to those without legal protection insurance.
In fact, Rightmart could be seen as a competitor of the providers of such insurances. Notably, after KS/AUXILIA, a legal protection insurer, invested in the series A round in February 2022, they, along with LVM Insurance, contributed as a strategic investor in this recent funding round.
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