Blogs

Ed Scanlan

Total Attorneys Raises $15m from Bain Capital Ventures

  • 1384 views
  • 2 comments

This month Total Attorneys turns 10 years old. Wow, what a ride so far. We took the path less traveled. We bootstrapped, starting the business in a Bucktown apartment with little more than a credit card, laptop and cell phone.

We have built a great business; one that powers thousands of law firms across the county, one that is transforming an old world industry for the better through technology, one that has improved access to justice for consumers nationwide, one that has launched careers through a fantastic work envirnment, one that was built in Chicago.

Want to be a part of the story? Total Attorneys is hiring

 

Here is an article from Law.com that published orginally here

 

Total Attorneys Receives $15M Bain Investment

Brendan McKenna

Law Technology News

05-03-2012

Total Attorneys, a web-based practice management and legal marketing company founded in 2002, has received a $15 million capital investment from Bain Capital Ventures, the venture capital investment arm of Boston's Bain Capital. BCV is known for its work with early-stage companies, and will take an undisclosed stake in the Chicago-based company in exchange for its investment.

Ed Scanlan, founder and chairman of Total Attorneys, said that the investment will allow his company to "continue to develop its web-based practice management and customer acquisition platform." Some of the money will assist with Total Attorneys' marketing endeavors, as well. "With a $1 per user per month base license cost, we are experiencing tremendous growth," he added. Other offerings, such as lead generation, cost extra and are a significant source of revenue for the company. Scanlan declined to disclose Total Attorneys' revenue and employee headcount.

Scanlan said that Total Attorneys has found success with Total Apps, its apps for small firms, launched last month. It has been designed with a "one-stop-shop" approach in mind, according to Scanlan, and includes partnerships with third-party providers, including Fastcase for legal research and Capital Payments for payment processing.

"Bain Capital Ventures was attracted to the company due to our unique, performance-driven marketing solutions, our feature-rich, turnkey SaaS practice management platform, and our growth," Scanlan said, adding that additional hires are possible in the coming year, in the areas of software development, customer service, user experience, and marketing.

Reached by telephone, BCV partner Deepak Sindwani noted that small firms are responsible for $100 billion a year in revenue, one-third of the total for the legal industry as a whole. Research, he said, shows that the largest spending category for these attorneys is marketing, a specialty of Total Attorneys through its lead generation and other services.

Sindwani also added that while the market is sizable for small firms, it remains very fragmented, another reason that BCV sought to invest in Total Attorneys. While BCV looked at competitors in the small law firms market segment, he said ultimately it was Total Attorneys' product offerings and staff that prompted the investment.

He also voiced support for the recent hire of Paul Ford as company CEO, and expressed admiration for Ford's success growing, and ultimately selling, earlier companies he was involved in. Ford had been a Total Attorneys board member since 2010.

Katey Wood, an analyst for Enterprise Strategy Group, says that the move signals a "continued need for affordably priced solutions for solo practitioners hanging out their own shingles in the marketplace, as Big Law continues to struggle and lawyers grow more entrepreneurial." She also sees the investment as part of a larger acceptance of "SaaS-based, Web 2.0 and apps-store style software from a new generation of attorneys."

Wood believes that there is a "need for newer software vendors to scale and market effectively in order establish themselves against the old guard of legal software and service providers like Lexis and West that begin conditioning the market as early as law school."

Sindwani was asked whether BCV might consider future legal technology investments. He said that while they were not dedicating a lot of focus to legal technology, it's "an interesting market," and they are "open to it."

Post a comment

or Create an Account to post comments

Comments

Tim Curley

Congratulations Ed Scanlon,
Based upon my experience with attorneys in leadership positions, there is a love hate relationship with software. Can't live with it and can't live without it, particularly with maintaining it. I think at some point you will see traction with the large firms, just as Saleforce.com did.

Ed Scanlan

Thanks Tim!

80% of lawyers in private practice work in firms of under 10, 80% of those are in firms of under 5 and 80% of those are solo practitioners. So we are focused on those guys. That said, we are already working with much larger firms. Our goal is to make lawyers have a love love relationship with their software.

Oh no!

You're fresh out of job post credits.

Buy more job post creditsUpgrade to unlimited plan
Where Chicago's Startup Community goes to stay connected.
  • news
  • jobs
  • events
  • networking

Sign Up Today!

Let startups find you

Create a profile and upload your resume today.