Expert explains how startups can avoid legal problems from the ideation stage

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 stage helps mitigate risks and promote a safer trajectory. 

Data from the Brazilian Association of Lawtechs and Legaltechs (AB2L) show that startups investing in personalized legal solutions are up to 70% more likely to grow sustainably.In 2023, for example, about 35% of startups that went bankrupt in Brazil faced legal problems not adequately addressed from the beginning.

According to Fabeni, CEO of StartLaw, Curitiba lawtech that aims to uncomplicate the life of the entrepreneur organizing the legal information of CNPJs growing through technology, one of the biggest traps for startups is to underestimate the need for robust legal advice. “The absence of preventive measures can lead to corporate disputes, labor, intellectual property problems and even premature bankruptcies”, he explains. 

Strategic tools help mitigate risk

New technologies and agile methodologies are fundamental to the functioning of startups, and the use of legal intelligence tools can be decisive in mitigating risks. Tools with the use of artificial intelligence (AI) and machine learning not only prevent potential legal problems, but also assist entrepreneurs and strategic employees in decision making StartLaw, for example, it offers a combination of law and technology to ensure governance with a legal platform 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 court documents to predict possible outcomes, an example of how technology can transform the legal management of startups, having already helped several companies avoid costly litigation with strategic information, increasing their chances of long-term success. “Our goal is to protect startups from future litigation and legal problems, allowing them to focus on what really matters: the” innovation, Fabeni points out. 

Legal certainty 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 adopting technological solutions in the legal field, such as artificial intelligence, can reduce litigation-related 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.

A 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 structure that supports the growth of the company in a safe and efficient manner”, concludes Fabeni.