Investors’ estimated the company “Pravoved.ru” (the developer of the lawyer robot) at 600 million roubles ($10 million). Russian venture fund AddVenture (investor in Qlean, Delivery Club, Growfood and other projects) acted as lead investor in the round A financing of the largest service of legal advice in Russia,. This was reported by “Pravoved.ru”, and the deal was confirmed by AddVenture. The total size of the round exceeded $1 million.
The company will allocate funds for the development of the technology platform, including the development of a new product — a lawyer-robot with the elements of artificial intelligence, expansion of functionality of mobile applications, operating expenses and marketing.
The purpose of the program is to create the lawyer-robot using artificial intelligence and machine learning to give the client legal advice without human intervention.
Pravoved.RU – online platform working since 2012. The service provides access to professional lawyers whom you can ask free or paid questions. Service can be used through web application, mobile application for iOS and telegram-bot. Average handling time is 2 hours. The creators claim that the app and telegram-bot guarantee the receipt of a response from a lawyer even to free question.
Representatives of the service told about the fact that the “Pravoved.ru” robot with the trained neural network defines the area of law and the topic of the client’s question more accurately than a person. In cases where developers allow the robot to provide answers to real customers it receives positive feedback from customers only 30% lower than from a real person.
The company has a database of over 1.5 million rendered consultations on different topics, which is growing every month by 60 000 units. It uses this database to study the legal system.
The developers are confident that in the near future the robot will be able to beat people and get more positive feedback from customers at the expense of speed of response and completeness.
By estimations of Pravoved founders, the robots will be able to take a substantial portion of the typical legal tasks. In the next five years, 10-15% of the lawyers’ tasks can be fully automated.
Since its foundation the “Pravoved.ru” audience continues to grow every year by 70-100%, and the company’s revenue growth annually by 100-130%. In this round of financing investors valued the project with a monthly audience of over 4 million people to 600 million rubles ($10 million). Since 2012 the service was used by more than 1.3 million people with the average consultation cost of 800 rubles. Some other features of the project (drafting of contracts, pleadings, etc.) — 3 600 rubles.
Today “Pravoved” has more than 20,000 registered lawyers. Commission for lawyers for online and offline transactions reaches 30-35%.
Managing partner of the AddVenture investment fund Maxim Medvedev said the “Pravoved.ru” deal in the segment of legaltech is of a lot of interest to the fund. “We are closely watching the development of this trend in the global market, and we believe the emergence of a marketplace of legal services is the undisputed World trend — this business model works well in Western markets. In Russia this niche is free and has excellent potential for development”, — said Mr. Medvedev.
According to the study conducted by “LawFirmManagement”, the total legal services market in Russia is at about 120 billion rubles, while the costs of law firms to attract customers are at the level of 30 billion, he said. At the same time, according to Mr. Medvedev, the service helps companies to save the adveritising budget by giving access to customers via online consultation. “Using the service is extremely beneficial both for lawyers and for users to obtain quality legal services at an affordable price, and most importantly, find a trusted expert on the problem. We see great prospects for the development of legaltech-marketplace in Russia, and look forward to work with professional team of the “Pravoved.ru” project, — he concluded.
CEO and founder of the project Valery Meshkov believes that the new investment “will be a great impetus to further expansion of the service, for improvement of the IT platform and the creation of new LegalTech products for the market. There is a myth that legal services are very difficult, time-consuming and expensive, but actually to obtain competent professional assistance of a specialist can be a few minutes”.
AddVenture is founded in 2008. Investment focus – software, e-commerce, foodtech and travel with total funds $100 million.
The most successful portfolio project — Delivery Club — has been sold to FoodPanda in 2014. The fund’s partners – Maxim Medvedev, Pavel Terentiev, Mikhail Ehrenburg. Among the key investments of the company Growfood, Qlean, Shefmarket, Gettable, Delivery Club, Medbooking.