The LegalTech Ecosystem in Wales

Overall, all the interviewees generally praised the support received locally by Welsh Government, universities and local bodies. The key aspects mentioned were the following: • excellent apprenticeship schemes, around data security and cyber security offered by Welsh Government, 332 • easy and straightforward access to Welsh Government officials, • FinTech Wales, as a regional hub especially useful for facilitating networking with other businesses and local bodies, • Collaborations with companies operating in other sectors and academic institutions, promoting mutual growth and knowledge transfer. Validient, for example, noted that working with firms of various sizes and collaborating on technology- related discussions, events, and feedback could enable start-ups to better tailor their services to the needs of the legal market. Identitech echoed the same point, praising the role of FinTech Wales: [In] Wales I think there's just so much more support. I can just go to FinTech Wales, pick any of the companies on there and reach out and speak to them, ask for advice. Having that close network in Wales is invaluable. (Identitech) However, the lack of LegalTech-focused organization like Lawtech UK was a point of concern. Validient, the only Welsh LegalTech start-up to take part in Lawtech UK’s Sandbox, noted that: We have had support in Wales from our network of investors, and access to firms through LawTech UK sandbox and there were some firms in Wales that could help us. But if we didn't have that, we wouldn't have had the access help since there are no organizations in Wales that organize networking events. (Validient) However, some of the interviewees observed that there is some hesitancy, within the local legal community, in embracing legal technology, suggesting that encouraging law firms, especially smaller ones, to adopt new technology-based solutions is crucial to support the growth of Welsh LegalTech start-ups. Law firms may be hesitant to invest in innovation due to increased costs and the learning curve associated with new technology; however, demonstrating the benefits and value of LegalTech solutions should increase the adoption rate in the legal sector. Ultimately, Wyser suggested that some more trust should be put into the local LegalTech industry: “Give SMEs the opportunity to provide you services. Take a risk and reach out to smaller companies and give them a chance” (Wyser). Hiring and retention of local talent is a challenge faced by many start-ups in Wales. Research has shown that tech start-ups need highly skilled coders and developers, with their unavailability reducing growth opportunities. 333 There is an overall difficulty in training and retaining talent in the legal sector in Wales, 334 a factor also mentioned by some of the interviewees. Generally, Welsh start-ups and scale-ups are keen to

332 Welsh Government, “Apprenticeships”, available at https://www.gov.wales/apprenticeships. 333 Thomas et al. (n 324), 17. 334 The Commission on Justice in Wales (n 1), para 9.11.

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