As startups, by their nature, operate in a dynamic environment, where innovation and rapid growth bring both opportunities and challenges. As the business develops, legal issues may arise, but investing in specialized legal solutions from the ideation phase helps mitigate risks and promote a safer path.
Data from the Brazilian Association of Lawtechs and Legaltechs (AB2L) show that startups that invest in customized legal solutions have up to 70% more chances to grow sustainably. In 2023, for example, about 35% of startups that failed in Brazil faced legal problems inadequately addressed from the beginning.
According to Nícolas Fabeni, CEO of StartLaw, a Curitiba lawtech that aims to simplify the life of entrepreneurs by organizing legal information of growing CNPJs through technology, one of the biggest pitfalls for startups is underestimating the need for robust legal assistance. “The absence of preventive measures can lead to corporate disputes, labor issues, intellectual property problems, and even premature bankruptcies,” he explains.
Strategic tools help mitigate risks
New technologies and agile methodologies are essential for the operation of startups, and the use of legal intelligence tools can be decisive in risk mitigation. Tools with the use of artificial intelligence (AI) and machine learning not only prevent potential legal issues but also assist entrepreneurs and strategic collaborators in decision-making. For example, StartLaw offers a blend of law and technology to ensure governance with a legal platform. Moreover, it relies on artificial intelligence to assist in legal demands, ensuring that startups maintain legal compliance at every stage of their evolution: ideation, traction, and scale.
Acting as a LaaS (Legal as a Service), the company’s AI analyzes process data and judicial documents to predict potential outcomes, an example of how technology can transform the legal management of startups, having already helped numerous companies avoid costly litigation with strategic information, increasing their long-term success chances. “Our goal is to protect startups from future litigation and legal issues, allowing them to focus on what truly matters: innovation,” highlights Fabeni.
Legal security promotes sustainable growth
In addition to mitigating immediate risks, legal prevention contributes to the sustainable growth of emerging companies. A 2022 study by Zion Market Research showed that the adoption of technological solutions in the legal field, such as artificial intelligence, can reduce litigation costs by up to 30% and optimize the resolution time of recurring problems, such as contractual failures, intellectual property violations, and regulatory inadequacies, which can be costly throughout the business journey.
Specialized legal support can be a differential for the sustainable growth of the business, whether it is a startup or a traditional company, protecting it from legal risks to expand in a competitive market. “Our role is to ensure that the entrepreneur is always one step ahead, with a legal framework that supports the company’s growth safely and efficiently,” concludes Fabeni.
