4 - The LegalTech start-up and scale-up ecosystem in Wales
The UK LegalTech sector has witnessed substantial growth in the recent years, doubling its size in the period 2017-2020. 225 Although most LegalTech companies (58%) are in London 226 , Wales is attracting high investment in start-ups and scale-ups, peaking at £129 million pounds in 2020. 227 During COVID- 19, with legal organisations increasingly adopting technology to deliver their services, LegalTech companies have accelerated their growth 228 , contributing to a Welsh tech sector valued at £8.2 billion in 2022. 229 This chapter analyses the start-up ecosystem in Wales, focusing on (i) LegalTech start-ups and scale-ups, and (ii) other start-ups and scale-ups developing legal innovation. We provide the first comprehensive mapping of the field, exploring the challenges and opportunities experienced by Welsh LegalTech entrepreneurs. 4.1 Methodology and limitations To better understand the LegalTech start-up and scale-up ecosystem in Wales, we designed a two-stage research methodology, involving: a) A review of publicly available information on Welsh start-ups and scale-ups, including (i) online newspapers and news portals (e.g. WalesOnline, South Wales Argus, etc.), (ii) investment databases and data portals (e.g. Crunchbase, SeedLegals, etc.), (iii) tech news websites (e.g. UKTN, Startups., etc.), (iv) company websites for all the start-ups and scale-ups identified, (vi) Companies House register, (vii) other official government websites (e.g. Welsh Government, Business Wales, etc.). b) A series of semi-structured interviews with Welsh LegalTech start-ups and scale-ups, focusing on (i) their structure and mission, (ii) their market strategy and products, (iii) their experience of entrepreneurship in Wales (challenges, opportunities, suggestions for improvement). 230 The first phase of the research identified 20 Welsh start-ups and scale-ups that were approached for interviews, including 6 LegalTech companies and 14 companies operating in other sectors (in particular, 225 Lawtech UK, “The Lawtech UK Report 2021, Shaping the Future of Law” (5 July 2021), 17 and 40, available at https://lawtechuk.io/insights/shaping-the-future-of-law-the-lawtechuk-report-2021. 226 Farzana Haque, “Top 10 Lawtechs: Innovative Solutions Emerging in the UK” (Beauhurst, 23 February 2023), available at https://www.beauhurst.com/blog/uk-lawtech/. 227 Henry Whorwood, Daniel Robinson & Freya Hyde, “ Investing in Wales, The Welsh High-Growth Ecosystem 2021” (Beauhurst, 2021), 3, available at https://www.beauhurst.com/research/investing-in-wales/. 228 Sako and Parnham (n 67), 4. 229 Trade & Investment Wales, “Together Stronger: The Rise Of Welsh Fintech” (Trade & Investment Wales , 25 January 2023), https://tradeandinvest.wales/inside-story/together-stronger-rise-welsh-fintech. 230 Ethical approval for the interviews was received by the Research Ethics and Governance Committee at the Hillary Rodham Clinton School of Law, Swansea University, on 19 July 2022.
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