TBC X LegalPay - How you can start your Investing journey in Litigation Financing.
Hello Builders, this is a special issue of the newsletter. Let's see how this Litigation finance startup aimed at funding cases is now open for the retail investors.
Investing your hard-earned money is a must in order to build wealth. You can invest your money in several asset classes that have the potential to earn strong rates of return. Financial instruments like stock markets, bonds, mutual funds, real estate are a sector of investments known for giving huge returns in the long term.
Today, I am going to talk about investing. So, is this going to be another financial piece in your inbox? Probably not. Because I am going to talk about investing in legal cases. You heard it right!
It is called Litigation financing or Legal financing.
Litigation financing is the practice where a third party unrelated to a lawsuit provides capital to the plaintiff involved in litigation, in return for a portion of any financial recovery from the lawsuit.
Litigation can be expensive, in terms of all the legal costs and fees. In such scenarios, plaintiffs can approach the litigation financing company to look after the costs and fund their case. And it doesn’t work on speculation. These companies make their investment decisions based on a variety of parameters like the history of similar past cases, the likelihood of victory, and other analyses.
Legal financing is an alternative asset class and does not depend on the stock market fluctuations and economic factors.
While legal financing has been in existence since the 1960s, a Delhi-based third-party litigation finance startup is aiming to tap a $20 billion legal expense market.
Introducing to you - Legalpay!
LegalPay is India’s first third-party litigation financing platform that funds litigation and other legal costs for shareholder and IPR related disputes, commercial arbitrations, and other time-bound cases, which then earns a percentage of return on the winning of the cases. Founded last year by Kundan Shahi, LegalPay works on a collaborative approach. It works hand-in-hand with the top lawyers and law firms across India.
Earlier, only the ultra-rich had access to this asset, but we are making it accessible to anyone and everyone. Anyone can invest with a starting ticket size of Rs 25,000.
In a recent conversation with Kundan Shahi at The Builder’s Club, which you can listen to here, he shared how LegalPay is set to launch its litigation investing platform for the retail investors, with a ticket size as low as Rs. 25,000. With LegalPay opening doors for the common investors to take part in the legal financing, it aims to democratize the platform, making it accessible to everyone.
Even though litigation financing is not co-related to the capital markets, the core objective of investing in an asset class stays the same.
If you don't invest, you are missing out on opportunities to increase your financial worth.
For an in-depth understanding of litigation finance and to know how you can start investing with LegalPay, you can listen to the Watercooler Podcast with Kundan Shahi here.
Tell us in the comments, how do you find this piece on litigation finance, and make sure to check out LegalPay, and make your first investment by clicking here.
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