Talk about a teachable moment: Software startup Mighty just raised $114 million in funding and is using the attention they're receiving as a result of this new investment to educate people on litigation financing — when investors help fund a plaintiff's lawsuit in return for a portion of the settlement — and challenge its typically negative connotation.
The company got its start when Co-founder Joshua Schwadron began financing plaintiffs directly. When he realized he could leverage hundreds of regional litigation funders to help plaintiffs at a larger scale, he turned to technology. He and his team created the Mighty platform, which makes it easier for investors to manage their clients’ personal injury cases.
If you’re skeptical, you’re not alone. Schwadron noted that the biggest challenge surrounding the industry is its reputation.
“I understand the temptation to characterize advancing money on a plaintiff’s lawsuit as offensive to one's sensibilities. When I first got involved in the industry five years ago, I was embarrassed,” he said. “Today, though, I’ve never been prouder of anything I’ve worked on.”
We believe that empowering our customers with cheaper and simpler capital will ultimately benefit not only them, but plaintiffs and the justice system as a whole."
The company — which is backed by investors Tribeca Venture Partners and IA Ventures — helps victims who were injured and may not otherwise be able to afford compensation. Lawsuits can last years, and payouts can take an even longer time to process. Essentially, Mighty helps empower these people so they can seek justice, regardless of their economic status.
“These people just had the worst days of their lives and now the justice system is too slow to help them pay rent or their medical bills while they’re waiting for it to work,” said Schwadron. “It’s unjust.”
The platform helps investors monitor the status of their cases and improve communication between all of the entities involved — from doctor’s offices to the plaintiffs themselves.
The Series B investment will be used to grow the team in New York and help investors on the Mighty platform.
“We believe that empowering our customers with cheaper and simpler capital will ultimately benefit not only them but, plaintiffs, and the justice system as a whole,” said Schwadron.