AI is hot. Legal AI is hot. And EvenUp only It collected a Series B gross of US$50.5 million with a post-money valuation of US$325 million.
They say hindsight is 20/20.
When we first met Ramy, Raymond, and Sam three years ago, “it” was a little less clear. It was July 2020, everyone was on lockdown due to coronavirus and a funding winter, generative AI was not yet agreed upon (or even a phrase really), and PII + AI seemed like a weird, unattractive fit… at first.
But then it clicked. Raymond’s personal drive to improve the industry was the obvious “why”, Sam’s legal background was the obvious “what”, and Ramy’s understanding of data and AI showed the “how” different EvenUp would be. They were the perfect team to change the personal injury space for the better.
3 years later, EvenUp is well on its way to bridging the justice gap using technology and artificial intelligence.
Here’s more about what we saw then, and why EvenUp was my first investment in NFX, as well as what Bessemer and Bain Capital Ventures are seeing now, and why we’re redoubling our efforts.
1. Strong Network Effects Driven by Huge Start
One of the biggest advantages AI startups can have is private data. While anyone can ask ChatGPT to draft legal demands, without different data, they won’t get any better than the next person.
EvenUp was founded in 2019 to help law firms use software to predict the value of personal injury lawsuits. Since then, they’ve expanded their platform to use AI to create legal documents for personal injury cases, including car accidents, police brutality, child abuse, and natural disasters.
During the process, they’ve collaborated with more than 300 law firms, helped raise $500 million in damages, and are now drafting more than 1,000 applications a month.
This process creates a network effect as each new case they work on generates more data to better formulate requests and estimate case value.
This has created a self-reinforcing cycle that gives EvenUp a much stronger position than many legal AI startups that have just launched.
2. A broken niche with a $200 billion opportunity
In the personal injury business alone, there are an estimated 50,000 companies that help victims obtain settlements worth more than $200 billion each year.
Despite this gigantic market, personal injury law remains an incredibly broken and inefficient industry. This can be attributed primarily to the fact that 99% of settlements are private, which makes it nearly impossible for victims and law firms to know the true value of each case. Also, the average case length is more than a year, putting pressure on victims who may need money sooner to settle a smaller amount.
EvenUp solves both of these problems by leveraging its data and algorithms to give victims and their attorneys a better idea of the value of their case, and speeding up the process through AI-generated requests.
3. Their “Internal AI” model focuses on saving time and cost
EvenUp realizes that AI is not the selling point. the Customers don’t care that you use AI. You’re not selling AI to them. You are simply selling something that is better than other offers.
In the case of EvenUp, they’re selling a faster, cheaper, higher quality process – at the core is the order letter.
The comprehensive application identifies the defendant’s liability, the victim’s injuries, current and future expenses, and presents the initial application for compensation. These letters are very formulaic, but require days of research by lawyers. But crafting a good idea has enormous implications: If all goes well, a lawsuit may never be filed and the victim may receive his or her compensation.
The Even Up program takes at least five hours of the application letter writing process. This results in a – Reducing costs by about 50 percent in terms of lost hours. This, in turn, leads to immediate time savings for personal injury law firms, and better outcomes for victims.
EvenUp’s AI-based approach allows them to make a quantum leap forward from old, expensive workflows into a new era where they can do more (much) for less (much) less.
4. Institutional market compatibility
Last but not least, we supported EvenUp because of their founding team who together understand the business, legal and human aspects of building a company like this.
EvenUp Co-Founder and Chief Operating Officer Ray Miszanek I witnessed the industry’s problems firsthand. His father was in a serious car accident. With their family’s financial constraints and a lawyer who didn’t know the value of their case, they settled very early for a fraction of what was fair.
This personal experience is often a sign of this The founder of the market is valid – In this case, I helped guide and shape EvenUp’s mission to bridge the justice gap using technology and AI, helping personal injury attorneys and victims get the justice they deserve.
EvenUp Founders: Ray Miszanek, Rami Karabibar, and Sam Mashhad
Ray joined the CEO Rami Karababar who brings background on startups and venture capital from Bain and Waymo. Sam MashhadHead of Legal Products and Operations, has worked for numerous law firms and non-profit organizations bringing a deep understanding of the personal injury space and its complexities.
For these reasons and more, we’re excited to continue supporting EvenUp. Learn more about the company at: https://www.evenuplaw.com/