Executive Summary:
Quantifying the Law to reign in a new era of efficiency and performance
QuantLaw is a DE corporation formed in 2021 to solve for the vast information void that currently permeates the legal sector and negatively impacts participants and society at large.
QuantLaw will be the first digital lending and legal marketplace empowering legal consumers, lawyers and other stakeholders (3rd party payers and lenders) data driven transparency and decision-making that positively impacts all facets of legal dispute decision making, thereby providing first-ever price discovery; and enabling frictionless, systemic access to affordable legal asset financing. (Legal assets represent the future cashflows received from the resolution of legal disputes).
The “Genesis Legal Financial Calculator ”, stands at the core of the QuantLaw’s platform, enabling the dynamic valuing of legal cases through time and providing the foundation to:
1.) Replace the current “blind” trust (relationship-based, qualitative) system for finding and assessing legal representation with QuantLaw’s empirically backed lawyer/ law firm ratings (akin to “track records”);
(2) Replace the antiquated billable hour business model and the structurally inefficient outcomes that result; with innovative alternative legal fee structures that incentivize achieving the best Net economic outcomes for the Parties (on both sides) as well as the law firm;
(3) Vastly increase market access and other challenges associated with the current limited, and qualitatively driven, litigation funding sector (less than 2% addressable market penetration) with QuantLaw’s Genesis enabled underwriting; providing dynamic claim pricing and frictionless, systematic access to affordable legal-asset financing for parties, lawyers and law firms.
(4) Provide sophisticated investors performance transparency access to the exceptional cashflows, not correlated to the market or fundamental economy, from this emerging, yet massive new asset class.
QuantLaw’s innovative approach ushers in a new era of efficiency to the legal sector that benefits all participants while vastly expanding access to justice for meritorious legal claims.
Size:
~ $1T Potential overall $ value of existing Cases
~ $12.8+B in total Cases currently funded by existing Litigation Funder sector
~ $400+billion in new legal cases filed annually
~ $2.8B Billion in annual new issuance by Litigation Funder Sector (representing less than 1% of market penetration).
Case Performance:
Litigation Funds typically cite gross annualized returns on cases funded of ~ 40%
While often LP investors cite net returns in mid to high teens after fees and dilution; among a variety of other challenges..
Why does this market opportunity exist?
The legal market has remained void of transparency/ price discovery because of a mistaken mantra that the distinct facts of every legal case, coupled with variable decisions by opposing players, result in an insurmountable level of unpredictability.
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Timing (duration of legal cases)
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Cost of litigation (legal fees & expenses)
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Probability of different outcomes (Judicial decisions; verdict)
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Measuring the Impact of different variables
The result of these often cited “inevitable unknowns” by lawyers typically leaves the most critical factors for informed decision-making relegated to the client. (when to settle or the amount offered/ accepted).
The impact of the data void is exacerbated when applied to financing (against a “contingent asset”) - ultimately, the price of financing is a function of the asset's value; probability of full or partial payment or default (resulting in assigning an appropriate Loan to Value and interest rate). Due to the current quantitative void, often there is an attempt at a complete risk transfer; reflected in excessive terms that vastly limit adoption and market penetration.
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