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Funding and ConsolidationIn the past year, the legal technology space has witnessed a spate of mergersand acquisitions and a record rise in funding. That demonstrates the growingsophistication of the legal technology market. Legal tech in 2017 saw 233million in investments in companies across 61 deals, edging ahead of 2016with 224 million in investments across 79 deals. Funding for disrupting thelegal profession continues to flourish in 2018, as shown in the graphic below.Investment site Crunchbase found that legal tech startups raised 1.25million in Q1 2017, compared to over 49 million in just the first month of2018. Notable consolidations in the past 12 months covered the whole legaltechnology spectrum. In legal research, Fastcase acquired Docket Alarm, andRavel was acquired by legal research giant LexisNexis. In litigation management,Integreon bought cloud-based litigation management platform Allegory. In IP,Boston-based Anaqua merged with California-based Lecorpio. In eDiscovery,an established pattern of consolidation continued. In the contract managementspace, document management platform iManage’s acquisition of the RAVNAI engine has shown significant benefits in integrating AI into a documentmanagement system. This year, e-signature leader DocuSign has filed for anIPO, a major indication of the opportunities to transform daily tasks insidecorporate legal departments.The In-House Counsel’s Legal Tech Buyer’s Guide12

BIGGEST LEGALTECH FUNDING IN THE PAST YEARApr ‘17May ‘17Jun ‘17Oct ‘17Nov ‘17Donotpay 3.5M 2M 1.8M 1M 1.1MAccess to JusticeAccess to JusticeAccess to JusticeAccess to JusticeAccess to JusticeFeb ‘17Mar ‘17Jun ‘17Aug ‘17Sep ‘17 25M 25M 1.6M 8M 55MContract ManagementJan ‘18 10MContract ManagementContract ManagementContract ManagementContract ManagementFeb ‘17May ‘17Jul ‘17Sep ‘17 3M 96M .71m 20MeDiscoveryeDiscoveryeDiscoveryeDiscoveryOct ‘18Oct ‘17Dec ‘17Jan ‘18Sep ‘17 3M 2.4M 20M veryeDiscoveryMay ‘17Jul ‘17Contract ManagementNov ‘17Dec ‘17Apr ‘18Luminance 1MContract Due DiligenceSept ‘17iamip .983M 11MContract Due DiligenceOct ‘17 10MContract Due DiligenceFeb ‘18 1.9M 12MContract ReviewContract ReviewMar ‘17OCt ‘17 12M 8.7MTURBOPATENT 3.7M 3.25MIntellectual PropertyIntellectual PropertyIntellectual PropertyResearchResearchJun ‘17Jul ‘17Apr ‘18Jul ‘17Jun ‘17 3.2M 1.8M 2M 1.8M 10MAnti-PiracyDispute ResolutionDue Diligencee-BillingJun ‘17Sept ‘17Jun ‘17Aug ‘17Jun ‘17 16M 1M 1.1M .543M 10.5Me-SignatureExpertise AutomationLaw Firm BillingLegal AnalyticsLegal ServicesFeb ‘18May ‘17Jan ‘18Mar ‘18Mar ‘18 1.4M 5M 4Mundisclosed 3.2MLitigation ManagementOnline Legal ServicesDocument ManagementPersonal Injury TechPractice ManagementPrediction Techwww.lawgeex.com/buyersguide

BIGGEST LEGALTECH CONSOLIDATIONS IN THE PAST YEARAcquiredOct ‘17AcquiredJan ‘17AcquiredOpenTextGuidanceSoftwareDTINuLegalJLL PartnersXact DataDiscoveryJun ‘17MergedFeb OpenTextHightailCertaTechClearwater LegalMar ‘18MergedApr ‘18MergedConsilioAdvancedDiscoveryCatalystTotal DiscoveryJun ‘17AcquiredMay ‘17AcquiredNov eadKMJan ‘18AcquiredNov ‘17AcquiredFeb‘18AcquiredInternet BrandsAvvoIntegreonAllegoryVeritextDavid FeldmanWorldwide Court ReportingNov ‘17AcquiredJul ‘17MergedAug d Green& PartnerCPA GlobalJun ‘17AcquiredJun ‘17AcquiredJan ‘18AcquiredTyler TechnologiesModriaLexisNexisRavelFastcaseDocket AlarmApr ‘18AcquiredDec ‘17AcquiredMitratechThinkSmartDocusignAppuri Inc.Researche-SignatureLegal and gementeDiscoveryJul ‘17www.lawgeex.com/buyersguide

BlockchainIn the words of legal tech blogger and lawyer Robert Ambrogi: “Blockchainis quickly emerging as legal technology’s new black.” Blockchain is newform of database. The consensus-dependent and encrypted technologycould potentially revolutionize many aspects of business, including the law.However, most recognize that blockchain’s applications in the legal sphereremain limited. Rare examples include professional services firm EY, whichhas launched a new smart contract and blockchain platform for the insurancesector with a focus on global shipping. This Includes the ability to create andmaintain asset data from multiple parties, to link data to policy contracts,and to receive and act upon information that results in a pricing or businesschange. Insurance giant AXA has also launched self-executing contractscovering flight delays for consumers. However, according to Jason Smith,Senior Director and Legal Counsel for Apttus: “While blockchain is a very hottopic, I still think it’s got some more runway before we start seeing it trulyhit mainstream adoption in legal.”SaaS and Cloud ComputingSoftware as a service (or SaaS), built on cloud computing architecture, is a wayof delivering applications over the Internet as a service. Instead of installingand maintaining software, you simply access this service via the Internet,As a starting point,we only considerfreeing yourself from complex software and hardware management. BobAmbrogi, the legal tech veteran, succinctly answered the question of whetherto choose cloud or on-site installation. In short, “Go cloud.”SaaS tools asthis allows swiftFifty-two percent of all respondents to the 2017 ABA Tech Survey use cloudimplementation,technology, up from 37 percent the previous year. Cloud technology makes upeasy access fromany location, and lowcost of entry—Vicky Lockiethe lion’s share of software listed in this guide. It allows you and your team toaccess a platform from anywhere in the world. In most cases, the cloud offers themost advanced security and privacy, adhering to modern compliance standards.Vicky Lockie, former SVP AGC Strategy and Special Initiatives at Pearson, whomanaged radical legal tech transformation at the education giant says: “As astarting point, we only consider SaaS tools as this allows swift implementation,easy access from any location, low cost of entry with predictable monthlyThe In-House Counsel’s Legal Tech Buyer’s Guide15

expenses. It is easy to switch and there is no need for in-house IT or softwaremaintenance support.”In addition, the best cloud-based companies continuously add productfeatures and enhancements based on user feedback. The subscription elementmeans it is easy to switch or scale up and down, although many solutionsrequire a monthly or annual commitment.Can Lawyers Use the Cloud?The American Bar Association (ABA) has put together a chart of the ethicsopinions of bar organizations that have looked into whether lawyers canstore client files in the cloud. So far, no state has said no. The Legal CloudComputing Association (LCCA) has recently published a set of standardsproviding additional guidance for how lawyers should handle cloud computingissues.The In-House Counsel’s Legal Tech Buyer’s Guide16

HOW TO BUYLEGALTECHThere is no easy way to make an importantpurchase such as legal tech products. Legal techis spread across almost every aspect of the inhouse legal department’s functions. From managinglaw firm engagements or analyzing documents, tosharing information or reviewing invoices, there isautomation for just about every touch point. Sohow do you figure out what your department willbenefit from most?1. PrioritizeConsider the biggest pain points in your department and ask if technologyis the right solution. Consider whether there are process changes that canbe just as or significantly impactful with a much lower cost (if any) to thedepartment. Next, consider if the right people are involved in the process anddoing the work in the most efficient way without automation. Once you’veconfirmed that technology is the next step, consider how difficult or easy it willbe to implement the new solution. Some teams are more open to technologythan others. Some leaders have more incentive to automate. Select a processto automate that will have minimal resistance. Technology implementationsare challenging enough without dealing with internal struggles and hurdlesto adoption. Finally, start with one focused implementation. Going for thecomplete overhaul is hard, but small identifiable wins lay a great foundation.The In-House Counsel’s Legal Tech Buyer’s Guide17

2. Establish the current stateSpend time mapping out the current state of people, processes, and systemsthat are already in place and related to the technology solution you areseeking. Have a clear understanding of the process before starting thetechnology selection. It is healthy to perform a detailed mapping exercise sinceit is guaranteed to identify inefficiencies and quick gains. Define the impact toall stakeholders and how you will need to communicate with them. Know whois most sensitive to the automation and whose roles will be most impacted.3. Define goals and requirementsOnce the current state is mapped out and all stakeholders are identified,define the success measure for the implementation and goals for the newsolution. These high-level markers will keep everyone focused and preventscope creep. Then define your business and technical requirements forthe solution. What must the technology do? What must it integrate with?Are there some nice-to-haves but not deal breakers? Also, consider futureintegrations and expansion of the functionality of the system.4. Pick the solutionNow you are ready for the selection process. Work with someone experiencedin procuring technology. Follow standard protocol but include the attorneyswho will be impacted. They are the domain experts but will need guidancefrom operations or procurement to understand the impacts of the goals theyhave for this system. It is easy to dream big, but a reality check is alwaysuseful.5. Plan, plan, planPlan for what can go wrong and for disappointments along the way. Define asolid communications plan with all stakeholders, right-sizing the amount andtype of information shared about the implementation. With input from theThe In-House Counsel’s Legal Tech Buyer’s Guide18

tech solutions provider, develop a training plan and materials. Make sure youhave access to people with IT skills who can provide guidance and support.And of course, have a plan B. For further information on the essentials ofchange management, be sure to check out our accompanying guide, The InHouse Counsel’s Guide to Change Management.The In-House Counsel’s Legal Tech Buyer’s Guide19

TALES FROMIN-HOUSE TECHADOPTIONTed Lazarus,Google Legal Director“I think we’re seeing that the power of technologyto connect people—in particular, the ability to createa cross-functional dialogue—is transforming the inhouse legal function. It is more closely integrating“Any legal tech thatsaves an attorneylaw yers into the day-to-day operations of thebusinesses they support.”time throughincreased efficiencyis inherentlyvaluable, andattorneys—morethan almost anyprofession—knowthe value of time.”—Roberto FacundusTongalRoberto Facundus,SVP, Legal & BusinessAffairs at Tongal“Especially for in-house counsel, anything that savestime is welcome. There’s a disconnect in the wayoutside counsel and their clients—in-house counsel—work [together]. One is incentivized by increasing timeworked, that is greater billable hours, and the otheris incentivized by decreasing time worked. In-houseattorneys don’t make money on time spent working soworking efficiently is imperative. Any legal tech thatsaves an attorney time through increased efficiency isinherently valuable and attorneys—more than almostany profession—know the value of time.”The In-House Counsel’s Legal Tech Buyer’s Guide20

“The moretechnology cando the basic legalJustine Campbell,Deputy GeneralCounsel UK andIreland, Centricawork the more you“The more technology can do the basic legal work therealize that actuallymore you realize that actually what you have to do iswhat you have to dobe a leader who can establish and motivate a greatis be a leader whoteam, who can look strategically into the future andcan establish andexercise judgement over what really matters, who canmotivate a greatgive commercial advice and run an efficient function.team.”There is more to it than just giving your legal opinion.”—Justine Campbell,CentricaAlan Konevsky,group Head ofStrategic InitiativesCounsel at Mastercard“In the transformation of the delivery of legalservices, technology is a critical ingredient— whetheranalytics, equipping our lawyers with access to betterknowledge tools, or cataloguing our contracts in away that is helpful,”The In-House Counsel’s Legal Tech Buyer’s Guide21

Sterling Miller , GeneralCounsel at Marketo“One goal set out in my sample legal departmentgoals was to increase efficiency (and reduce costs)in the legal department. One of the easiest ways todo this is through the use of technology. This canmean anything from apps for your smartphone tosophisticated software programs running on servers atyour company. But, to be a successful in-house lawyeror general counsel you need to embrace technology andmake sure your team does as well. So, if you are afraidof technology, you need to get past that.”Reese Arrowsmith,Head of LegalOperations atCampbell SoupCompany“From a technology perspective, if all predictions arecorrect and the changes that are taking place cometo fruition, there will be a fundamental change in theway the legal industry works from beginning to end.We have probably all read articles about how [AI] andother technology will reduce the number of lawyersneeded. This truly fundamental change will requirelegal departments and the legal industry to rethinkhow they function, and the legal operations role will beinstrumental in that transition. The developments willchange how lawyers learn, do research, make decisions,develop case strategy, and complete document reviewin support of deals, contracts and litigation.”The In-House Counsel’s Legal Tech Buyer’s Guide22

CONTRACTAUTOMATIONSOFTWARE–THE CHEAT SHEET–Over the last two years, no other field of legal technology has evolved as much as contractautomation software. As often happens with new technology fields, an inflation of offerings leadsto confusion in the naming and definition of these new services.Therefore, we thought it would be important to define the terminology we use in this guide. Thisprimarily relates to the Features and Functionality, and less with where the technology fits withinthe contract lifecycle.DRAFTINGCONTRACT MANAGEMENTContract drafting software is used to automatethe generation of new contracts. These canwork using preexisting templates, Drag&Dropinterfaces, or online form questionnaires.Contract Management or Contract LifecycleManagement (CLM) solutions act as a centraldigital repository for contracts, with advancedsolutions offering calendaring, task and timemanagement, analytics, billing, and more.REVIEWContract review software is used to automaticallyreview “business-as-usual” contracts, preexecution, as part of the negotiation stage. It isused to flag provisions and issue-spot and can insome cases automatically approve contracts forsigning.EXTRACTIONExtraction is a feature of solutions such as DueDiligence or Contract Management, and it is usedto search either individual or a bulk of contracts,obtain specific information, and export it to a fileor third-party contract management system.DUE DILIGENCEANALYTICSAs opposed to contract review, due diligencetools are used to find specific details orprovisions across a large bulk of contracts. Thesesolutions are usually used one-time or ondemand, during discovery or due diligence tasks.Contract analytics is also a feature of DueDiligence and Contract Management Solutions;it combines data from a large bulk of contracts,either from a specific repository or on an ongoingbasis. They provide primarily quantitativeinformation and aggregated data.www.lawgeex.com/buyersguide

CONTRACTDRAFTINGContract drafting software enables lawyers toautomate the generation of standard legal documentsfrom automated templates. The programs tend tooffer questionnaire-style document generation withlawyers able to review and finalize the draft. Thesoftware helps legal departments cut hours creatingroutine and high-volume contracts.Law departments looking for areas where they can find a ready return oninvestment have found that their contracting process presents a powerfulopportunity to begin the legal buying journey. For writing an initial contract,drafting tools are used by more than half of lawyers, who report a 92%satisfaction level with this relatively basic software that has been aroundfor nearly two decades.“The game changerwith ContractExpress is that wesimplify the contractdrafting process toenable others in thecompany to do it forthemselves.”Contract Expresswww.contractexpress.comCost: Contract Express (by Thomson Reuters) allows GCs to accurately automateand update their legal templates. The contracts are generated by filling outWeb-based forms—also called “questionnaires.” The software allows theautomation of templates inside Microsoft Word by using markups. In thewords of one client, Seth Weissman, VP and GC of SolarCity: “Sales can—Struan Britland,create a contract at one in the morning, one in the afternoon or on a weekend,ARMwhenever they want. You don’t have to go through my department, and weThe In-House Counsel’s Legal Tech Buyer’s Guide24

will never slow you down.” Notable clients include Reckitt Benckiser, whichadopted Contract Express for its 700 non-disclosure agreements per year, andglobal professional services EY, which is using the software as part of a majordocument automation project. Cambridge-based Struan Britland, Directorof Legal Operations at semiconductor giant ARM, says: “The game changer[with Contract Express] is that we simplify the contract drafting process toenable others in the company to do it for themselves.”HotDocswww.hotdocs.comCost: HotDocs, acquired in 2017 by AbacusNext, allows companies to transformfrequently-used documents and forms into intelligent templates that, in theirwords, enables “superfast production of custom documentation.” Clientsinclude HSBC Singapore, which uses it to generate facility letters for itscorporate customers, and The United States Department of Justice, whichuses it across its 94 offices, primarily for litigation paperwork. In New Zealand,HotDocs, in association with its country partner LawHawk, is being usedby Bruce Riden, General Counsel for Housing New Zealand, reducing thegovernment agency’s time to create construction contracts from four hoursto one hour, while some consultancy agreements take 15 minutes. Ridenadded: “When we produce contracts using the automation, we average a 75%reduc

Legal Operations at NetApp and President of the Corporate Legal Operations Consortium: "Law firms are starting to see work go away. Bread and butter work is going away because of tech and other external providers." The growth of Legal Operations. Legal Operations (capitalizing second second reference), a movement to ensure that law departments