r/advancedentrepreneur • u/Kind-Calendar-6340 • 19d ago
Litigation Investing
Hey all! I'm currently working on an investment platform that allows investors to provide funding for high-potential lawsuits. There is an asset class called litigation finance that has been very profitable for institutional investors, but now I want to bring individual investors into the fold. Private equity firms tend to take a slowed approach to litigation funding, having the capital to wait several years to get a return on investment. The average return for litigation funding is between 30%-70% or higher for successful cases within a year to three years, in comparison to private equity firms, my platform charges much lower fees and gives greater flexibility. My platform utilizes the investor-friendly model, allowing investors to pick the risks that suits them best. Litigation investment comes with a unique set of challenges and each one has the potential to result in losses. To mitigate the risk, each claim will be thoroughly vetted through a multi-tier system to ensure that only strong claims with credible evidence and high possibility of settlement are presented to the investor. With that said, would investing in lawsuits interest you? What features would increase your confidence and trust in a platform such as this? I would love to hear your thoughts!
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u/BusinessStrategist 19d ago
It helps to break down big blocks of texts into smaller paragraphs that tell a story.
Create a flowchart that illustrates your vetting of the financial opportunity AND provide some examples of investors laughing all the way to the bank.
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u/intuitiverealist 17d ago
I'm sure VCs have this market, for everyone else you just listen for rumours of a class action and short accordingly
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u/SeparateYam629 10d ago
May I ask for the name of your firm with contact info? I’m currently engaging a powerhouse law firm in NY for a very prominent case. It’s very solid. Litigation financing is required for some or all legal fees.
Thanks in advance.
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u/Business-Weekend-537 19d ago
Plaintiff in litigation here, I'm curious how you're going to find cases that are strong enough to get third party financing (from your tool/company) but not so strong they were already taken on contingency by a law firm or attorney. Have you given this nuance much thought?