LegalTech sector has not yet fully matured

Quoting the opinion of Maître Mathieu Davy, president of the association Avostart, which brings together lawyers who have launched a LegalTech in France, an article in Les Petites Affiches explains that the French LegalTechs market, which is growing rapidly and has a large number of legal startups, making it the second largest market in the world, has still not reached full maturity.

This observation, which states that the market should be worth 40 billion euros in the long term and that funds have now been raised to the tune of 25 million euros, considers that the market will reach full maturity in four to five years, when the last psychological barriers, particularly those of professionals, will have been removed.

This article seems to us quite relevant, especially when we consider the "normal" evolution of a market in 4 phases: creation of the market and launch of pioneers, multiplication of players, consolidation into a limited number of players, and finally full maturity. In this sense, the French market is just beginning its transition from a phase in which the players multiplied to the beginning of the first consolidations.

It is also an opportunity for us to draw a parallel with the Luxembourg market, which is only in its first phase. Only a handful of LegalTechs currently exist in the Grand Duchy, including Legal Finder. However, based on the value of the French market, proportionally evaluated, the Luxembourg market for LegalTechs could be worth between 500 million and 2 billion euros in the long term. There is no doubt that the LegalTechs market in Luxembourg, as in France, will therefore continue to grow.