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Funds will be used to finance the business and continue to grow the team
Every year, large numbers of people are injured in a variety of accidents. Sometimes, it is the person's fault, but there are plenty of instances where a business or corporation could be at fault. While it should be a cut-and-dry experience, many times these victims get thrown into large, lengthy legal battles that simply become difficult to finance. That's where a litigation finance company comes into play.
They help bridge the gap of liquidity for these individuals. They advance funds based on expected payouts to the individuals, attorneys, and doctors and in return, they receive a set percentage if the legal battle is won. This allows these people to put up the good fight, while still being able to live their lives.
Founded in 2014, Mighty set out to create a peer-to-peer marketplace to allow users to crowdfund their legal actions in a form of litigation finance. Funders would set fees if the case was won, and if lost, then nothing would be owed to them. There was nothing inherently wrong with this system, but the company realized that often, litigation finance companies were offering as good, if not better, rates and services. It was at this time that Mighty pivoted to provide a SaaS platform for litigation finance companies. Their service currently has over 60 injury finance companies utilizing the MightyOS platform.
The platform has various features, but essentially, it helps these litigation companies with their entire workflow process - from agreements and payouts, to analytics and case servicing.
This week the company announced that they have closed a funding round totaling $114 million. $9 million will be going towards equity funding, while the remaining $105 million will be put into Mighty’s new investment fund, Mighty Capital. Investors include IA Ventures and Tribeca Venture Partners. Investment fund financing will be used to invest in litigation finance firms around the country.
“As a former funder whose business was stifled due to a lack of industry software and institutional financing, I know firsthand the challenges of being early in a nascent industry,” says Mighty Co-founder and CEO Joshua Schwadron. “One sign of maturity of a market is when service providers come in and start serving the companies in that industry. Mighty is the first to do that in the personal injury financing space, which will have positive effects on the originators we serve, plaintiffs, and the justice system overall. We are validation that the personal injury financing industry is here to stay.”
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