When considering launching a lawsuit, most are driven by the potential financial gain. However, many don’t consider the financial burden that a lawsuit may entail especially when considering litigation against a corporation or insurance company that’s armed with in-house lawyers trained to draw out the process. A number of speciality litigation companies have emerged that help alleviate the financial burden for plaintiffs during the arduous and lengthy process associated with a lawsuit. Powering these litigation specialists is Mighty. The company has pioneered MightyOS, a SaaS platform for plaintiffs and their litigation specialists to manage the process and documentation needed for successful litigation finance scenarios. The company has also launched its own fund called Mighty Capital to support litigation funders.
Today, AlleyWatch sits down with cofounder and Chief Growth Officer Dylan Beynon to learn more about the company, its origin, its new fund, and future plans.
Who were your investors and how much did you raise?
We received $114M in total funding: $9M in equity and $105M for Mighty Capital, our new investment fund. IA Ventures and Tribeca Venture Partners led our Series B and we raised the investment fund from major institutional investors in NYC.
Tell us about your product or service.
Mighty helps litigation finance companies grow with industry-specialized software and capital. We power legal and medical funding companies in the Personal Injury sector (think automobile accidents) who advance needed funds to plaintiffs and their doctors.
Our market-leading software, MightyOS, is an all-in-one core system designed to manage the entire funding process, including contracts, case management, underwriting, case servicing, reporting and analytics, and more.
Through our investment fund, Mighty Capital, we provide tailored capital and cash flow solutions to funders on our platform. We are strictly B2B and do not finance plaintiffs directly.
What inspired you to start the company?
Mighty was borne from the founders’ frustrations as former funders building a business in a nascent, imperfect market devoid of modern tools and service providers. We’re building the software and financial operating system they wish they had so that other businesses can grow and power plaintiffs more efficiently.
How is it different?
We’re the first technology and service provider for businesses with financial interests in personal injury cases. In addition, Mighty is unique because we provide both software and capital to our customers.
What market you are targeting and how big is it?
Every year, millions of people are injured in automobile, construction, and other accidents. They’ll receive $250B in settlements to make them whole. However, it will take years because big insurance companies and corporate defendants employ the Delay, Defer, and Deny strategy to force early, lowball settlements.
We’re helping those plaintiffs get faster, greater financial outcomes by providing technology, capital, and services to the financial companies powering plaintiffs and their doctors.
What’s your business model?
We earn both software and investment fees from MightyOS and Mighty Capital, respectively.
Are average retail investors sophisticated enough to invest in litigation finance and why is this changing?
We no longer support retail investors in a p2p marketplace. Instead, we’ve raised a $105M investment fund from top institutional investors to provide capital to professional legal and medical funding companies.
What are the biggest challenges that you faced while raising capital?
We’ve raised equity from venture capital investors before both at Mighty and in our previous startups. However, we’ve never raised a major investment fund. It’s a much longer and more arduous process, so the learning curve and grit required were exhilarating challenges to tackle.
What factors about your business led your investors to write the check?
We were surprised to learn that many institutional investors were already familiar with personal injury litigation finance but hadn’t yet made an investment.
The legal and medical funder market is highly fragmented. By aggregating the market on our software, we created a unique opportunity for investors to access the market by providing 1) scale 2) standardization 3) bringing our industry and operational expertise.
What are the milestones you plan to achieve in the next six months?
Growing the team – VP Engineering, VP Product, developers, and sales!
What’s your favorite restaurant in the city?
Peking Duck House in Chinatown. Best duck in town and bring your own wine!