While some law firms were initially reluctant to share WIP and accruals with corporate counsel clients, many have since changed their minds and now view this extreme transparency as a competitive advantage. For instance, a study conducted by Dentons revealed that Apperio assisted one practice group in producing more contemporaneous time entries, which resulted in quicker but accurate invoices. This resulted in a time reduction of up to 56% between sending an invoice to a client and receiving payment.
Apperio is a London-based legal tech startup and now it has raised $7M in funding to expand its operations in both the UK and the US.
UK-based VC, Molten Ventures led the investment, which also included participation from Cambridge-based VC IQ Capital, Palo Alto-based VC Nextlaw Ventures, and London-based VCs Notion Capital, Volution, and Hambro Perks. The latest cash infusion brings the company’s total funding raised since its inception to $19.9M.
The funds will be used to further develop the company’s product for corporate counsel and to meet the growing demand for new functionality from law firms. In addition, Apperio will expand its presence in the United States.
The Apperio platform, led by Nicholas d’Adhemar and Non-Executive Chairman David Eldridge, provides in-house counsel with comprehensive insight into their legal spending. Using its legal spend management platform, law firms can collect and analyse historical and current legal expenditures, including work-in-progress / accruals.
Apperio, founded in 2012 by former lawyer Nicholas d’Adhemar, offers legal spend analytics and matter-tracking software to law firms.
Its clients include Network Rail’s internal counsel in the United Kingdom and the Stockholm-based venture capital firm EQT Ventures. More than 250 global law firms are now connected to the platform.
The idea behind Apperio
The founder and CEO of Apperio, Nicholas d’Adhemar, is a lawyer turned private equity investment manager who noticed his firm was frequently surprised by the size of law firm invoices. Outside legal service providers’ fees for transactions would frequently exceed the cost of the initial estimate given at the outset, with little to no visibility until the invoice arrived.
D’Adhemar, who had previously worked in a law firm, understood that the law firms were simply being thorough. He was aware that both the client and the law firm had lost track of how much billable time the law firm had accrued due to the pace and intensity of work surrounding deals. He founded Apperio and started a third career as a legal tech entrepreneur because he knew there had to be a better way.
“We’re deeply grateful to our investors whose commitment has enabled Apperio to think differently about this enduring problem of transparency in the business of law,” said d’Adhemar. “We’re looking forward to their continued collaboration in this next chapter as we build out our legal spend management software and strive to strengthen the relationship between corporate counsel and their law firms.”
“It’s no secret venture funding has slowed across technology sectors,” said Apperio Non-Executive Chairman David Eldridge. “That Apperio closed on funding with both new and existing investors, in this environment, speaks volumes to the company’s unique position in the legal technology sector, the value the company is delivering to customers and the significant opportunities ahead.”
