New York's Lexshares is getting investors to provide support to those who can't afford the high costs of court battles.
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Platforms such as Indiegogo and Kickstarter have helped to prove that crowdfunding is now a viable option for entrepreneurs wanting to get a product off the ground, but both still have strict rules about what can be funded (despite the latter relaxing theirs earlier this year). There has been a push to create more social crowdfunding platforms however, and we’ve seen Watsi let donors pledge money to individuals’ healthcare needs. Now the legal industry has got its own crowdfunding site. New York’s Lexshares is getting investors to provide support to those who can’t afford the high costs of court battles.
Legal fights can be incredibly expensive, and if you want a good lawyer than plaintiffs will need to cough up. Unfortunately, those with a case may not have the funds to bring their battle to court and end up with an injustice going unchallenged. LexShares helps connect those people and businesses with investors that could help front the legal costs of taking their opponent to trial.
Specializing in ‘David and Goliath’ cases between small businesses and large corporations and multinationals, anyone can send their case in to be reviewed by LexShares’ team of law professionals. If they believe it has a chance, it’s posted on the site for investors to review. Anyone who wants to support the case can decide how much they want to invest. If it’s successful, investors receive a return of any legal fees and damages recovered through the trial, but if it fails the plaintiff doesn’t need to pay them anything. Investors can track each case through the LexShares dashboard.
LexShares aims to help businesses who might otherwise not have the capital to take their case to court. However, the company may need to be careful that the platform doesn’t turn the legal process into a betting platform for investors. Could this type of crowdfunding work for individuals who typically find it hard to get representation?