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 trajectory.
Data from the Brazilian Association of Lawtechs and Legaltechs (AB2L) show that startups investing in customized legal solutions are up to 70% more likely to grow sustainably. In 2023, for example, about 35% of startups that failed in Brazil faced legal issues that were not properly addressed from the beginning.
SecondNicolas Fabeni, CEO yesStartLawLawtech from Curitiba that aims to simplify entrepreneurs' lives by organizing legal information of growing CNPJs through technology. One of the biggest pitfalls for startups is underestimating the need for robust legal advisory. "The lack 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 using artificial intelligence (AI) and machine learning not only prevent potential legal issues but also assist entrepreneurs and strategic collaborators in decision-making. A StartLaw, for example, offers a combination of law and technology to ensure governance with a legal platform. Additionally, it hasartificial intelligenceto assist with legal demands, ensuring that startups maintain legal compliance at each stage of their evolution: ideation, traction and scale.
Acting as a LaaS (Legal as a Service), the company's AI analyzes case data and judicial documents to predict possible outcomes, an example of how technology can transform legal management for 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 issues, allowing them to focus on what truly matters: innovation," emphasizes Fabeni.
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 the adoption of technological solutions in the legal field, such as artificial intelligence, can reduce litigation-related costs by up to 30% and optimize the resolution time for recurring issues, such as contractual breaches, intellectual property violations, and regulatory non-compliance, which can be costly throughout the business journey.
Specialized legal support can be a key differentiator 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 company's growth in a safe and efficient manner," concludes Fabeni.
