However, a new wave of lawtech companies is emerging, offering a lifeline to SMEs and startups by providing accessible legal advice and documentation, especially when financial or human resources are limited. LawtechUK, an initiative supported by the Ministry of Justice (MoJ), is at the forefront of this digital revolution in the legal sector, aiming to stimulate entrepreneurial activity and encourage the creation of more lawtech startups.

“It is essential that everyone can access justice, whether as a private individual or as a business. This is especially crucial for SMEs, who often struggle to find or afford legal services. Research shows that over a quarter of SMEs have lost income due to legal issues but only 16% have instructed a solicitor to solve a legal issue. The growth of lawtechs servicing SMEs is helping to address this gap with  with easily accessible, targeted and affordable legal services” says Christina Blacklaws, Chair of LawtechUK’s Panel. “This helps businesses particularly when starting or scaling up, allowing founders to concentrate on building a successful business.”

A growing number of lawtech companies are now providing crucial support to SMEs across three pivotal stages of business: launch, growth, and expansion.

• Launch: Securing a new client is always a cause for celebration, but the administrative burden of onboarding can quickly dampen the excitement. Lawtech firms are stepping in with solutions to streamline this process. From contract templates, engagement letters, and non-disclosure agreements (NDAs) to efficient Know Your Customer (KYC) and Anti-Money Laundering (AML) tools, these companies allow business owners to focus on winning clients rather than getting bogged down in paperwork.
• Growth: As SMEs seek to establish credibility and position themselves as trusted suppliers, proving value to clients becomes a constant challenge. Lawtechs provide valuable support in areas such as General Data Protection Regulation (GDPR) compliance. For instance, Keepabl offers tools to help companies demonstrate their GDPR compliance to stakeholders, which is increasingly important in today’s "Trust Economy". Other lawtechs focus on employment and HR issues, assisting businesses in recruiting, onboarding, and retaining the talent needed to fuel their growth.
• Expansion: When a business achieves success in the UK and begins exploring international markets, protecting intellectual property (IP) becomes a critical concern, particularly when competing in regions like the United States. Terrifio, for example, offers virtual patent marking services, providing peace of mind to entrepreneurs looking to safeguard their innovations on the global stage.

LawtechUK has created an Ecosystem Tracker, a searchable online resource designed to help businesses find the right lawtech solutions. According to the tracker, 68% of UK lawtech companies are focused on B2B services, revolutionising traditional legal practices by offering tools that enhance efficiency, reduce costs, and improve the overall quality of legal services. These companies are driving innovation by automating routine tasks and providing advanced analytics for informed decision-making.

Some of the standout lawtech companies listed on the Ecosystem Tracker that cater specifically to SMEs include:

• Genie AI: Boasting the world’s largest open-source legal database, Genie AI empowers businesses to understand, customise, and negotiate legal documents with the help of AI-driven assistance.
• MyDocSafe: Tailored specifically for SMEs, MyDocSafe offers client portals, e-signature capabilities, onboarding automation, and compliance tools to streamline business operations.
• Sule Hub: Focused on simplifying the legal process, Sule Hub demystifies legal jargon and empowers entrepreneurs by providing stress-free legal support.
• Zegal: Committed to making quality legal services accessible, Zegal’s platform delivers a "corporate law firm" experience to businesses online.

To support the next generation of lawtech founders, LawtechUK hosts free regional events on topics like Generative AI and investment. Additionally, it offers a range of free programmes tailored to support lawtech entrepreneurs at various stages of their journey:

• Lawtech Fundamentals: A self-paced online course for those interested in lawtech startups or exploring new ideas.
• Lawtech Builder: A cohort-based programme designed for founders ready to launch a Minimum Viable Product (MVP) in the lawtech market.
• Lawtech Scaler: An intensive, interactive programme for lawtech founders focused on scaling their MVP, building early traction, and developing long-term growth strategies.
• Lawtech Mentoring: An objective-driven mentoring programme that connects startups and scaleups with experienced mentors within the LawtechUK network to help achieve their business goals.
• Lawtech Bridge: A programme that fosters collaboration between startups and established legal market players to drive innovation and share insights.