Invest / Lawbot - First Georgian Lawyer Bot
Georgian law consulting agency is raising capital to develop a unique and automated artificial intetligence legal assistant. The main benefit for such service is the full automation of the process, requiring no human interaction, as well as the speed and accessibilty to this service. Such automated service would be the first of a kind both in Georgia and the Caucasus region. The application process takes only 3 minutes,
CCLA was founded on August 29th, 2016 and it primary delivers legal advice in the field of business law. Company’s philosophy and core commitment is efficiency, professionalism, constructiveness and ﬂexibility in services provided for their clients. CCLA has a vast experience in Corporate and Commercial transactions. Areas of expertise include company and branch formation, commercial transactions, splitting, corporate recoveries. Finance sector is a driving force of CCLA. In a very short time span the company has become a leading law firm for the microfinance organizations and online lenders.
The company is planning to develop a fully automated legal assistant (“lawbot”), which specializes in solving standartized legal issues for both private and corporate clients. For private individuals, the service will specialize in appealing parking & traffic violation tickets, while for corporate clients the focus will be on drafting standard documents. The funds raised via GainWest platform will be used to develop the program and app, cover operational expenses, marketing and IP management.
Money raised through GainWest will be used to develop and maintain automated legal assistant website and application. Total estimated project cost is 400,055 USD (about 338,000 EUR), from which half of the amount 200,055 USD (169,000) EUR would be raised from GainWest platform, and the remaining 200,000 USD (169,000 EUR) from Georgian Innovation and Technology Agency (GITA). GITA will allocate 200,000 USD as a grant funding, in case initial capital for the development is raised from another source. More information about the grant can be found here - https://grants.gov.ge/en/Grants?call=219. The project is seeking for 180,000 EUR total loan, having 11,000 EUR as a cash buffer for unforseen expenses and currency exchange rate fluctuation effect.
GITA already has endorsed the project before and financed the initial stage of the project in 2018-2019 with a 40,000 USD (34,000 EUR) grant. Previous grant was used to fund operational, marketing and development expenses of the project for one year. During this time, a test version of the software was developed and launched on the Facebook platform as a chatbot. Up to 16 different services were also created by CCLA lawyers which need to be included in the final version. CCLA has secured domain lawbot.ge and has registered trademark for „ლობოტი“ (Georgian for "Lawbot") in 3 different classes of Nice classification: 35, 42 and 45.
The project costs can be divided in 4 types:
- 124,000 USD (105,000 EUR) for operational expenses (people);
- 120,000 USD (102,000 EUR) for system development;
- 144,000 USD (122,000 EUR) for marketing;
- 12,000 USD (10,000 EUR) for IP management.
Remaining raised 11,000 EUR will be used to cover unforeseen expenses and possible currency exchange rate fluctuation effects.
According to McKinsey Insights comprehensive survey, around 22% of a lawyer’s and 35% of paralegal’s jobs can be automated. Clients slowly but steadily are increasingly unwilling to pay for lawyers to do the work that can be done by technology. Given standartized nature of specific legal works and not having formidable solution established both in Georgia and the Caucasus, it presents a wonderful opportunity to solve an existing issue – decrease the cost of certain legal works by automation.
For private persons the service will initially focus on appealing parking & traffic violation tickets, where in Georgia there are 12 types of appeal. Car ownership has doubled since 2012 and total of 2,891,959 parking & traffic violation tickets were issued in 2019. The typical range for these tickets are 10 – 1,500 GEL (3 – 410 EUR). The total value of issued tickets were 37m EUR, from which around 5% or 1.875m EUR are appealed. Conservative estimate is that from 170,000 EUR (200,000 USD) service fee market around 20% could be captured quickly, implying around 34,000 EUR (40,000 USD) potential revenue from assisting with these appeals.
For corporate clients the service will initially focus on drafting standard documents, specifically, issuing default loan claims. Statistically, default loan claims have doubled since 2015 and there are 5 letters of the interest available. In 2019 from 30,000 claims around 10% or 3,000 could be covered by Lawbot, enabling another strong revenue stream. The cost per 100 processed claims is planend to be 199 USD (170 EUR).
The raised funds from GainWest and GITA will cover all expenses from 2020H2 up to 2024. During 2020H2 larger part of the expenses will be directed towards developing the program, yet the profitability is already planned to be reached by the end of 2020, as the operational costs are low compared to the revenue.
The loan is covered by GainWest Investment guarantee fund and secured with a shareholder guarantee.
Structure of the deal
The loan will be issued directly to "CCLA LLC" after successful raise of funds.
The company was established in 2016 in Georgia and delivers legal advice in the field of business law. The company is led by Mr. Ucha Dzimistarishvili.
|Company name:||CCLA LLC|
|Company reg. nr.:||405164021|
|Country of registration||Georgia|
|Date of incorporation:||29.08.2016.|
|Type of business:||Corporate legal services|
|Revenue in 2019:||260,260.73 GEL / 70,550 EUR|
|Number of employees:||10|
|Registered address:||Address: #160, Floor 27, Complex
Tbilisi Gardens, M. Asatiani 10,
|Contact phone number:||T: +995 32 2 560 160|
|Contact email address:||[email protected]|
|Nr||Payment date||Principal payment||Interest payment||Loan balance||Total amount due|
|Records not found!|
€ 0 filled € 180,000 left
Fundraising opens To be determined
Fundraising expires To be determined
Loan period17 months
Loan typeBusiness Loans
Investment guarantee fund Yes
Security Personal Guarantee
Affiliated project yes
Investment amount (EUR)