Unfiled Lawsuits Funding
Share
A litigation finance business that funds promising lawsuits by analyzing and underwriting legal cases, taking a percentage of successful settlements while removing financial risk for plaintiffs.
Key Points:
-
Core Business Model:
- Analyze potential lawsuits that aren't being pursued
- Fund promising cases that plaintiffs can't afford to pursue
- Take a percentage of successful settlements
- Plaintiffs lose nothing if case fails
-
Market Opportunity:
- 70%+ of potential suits go unfiled due to:
- Lack of funds
- Uncertainty about winning
- Fear of going broke fighting large corporations
- Proven model: Burford Capital ($1.8B market cap) successful in England
- 70%+ of potential suits go unfiled due to:
-
Operating Process:
- People submit cases for review
- Legal team analyzes and underwrites risk
- Fund strong cases, reject weak ones
- Handle all legal costs for approved cases
-
Business Progress:
- Currently raised $6M as proof of concept
- Targeting 25-30% annual returns on investment
- Planning to raise $50-200M after proving model works
- Primarily funding from family offices and investors
-
Validation:
- Similar to Peter Thiel's Gawker case strategy
- Established precedent with Burford Capital's success
- Addresses clear market need for lawsuit funding
39:51 - 43:10
Full video: 01:18:56SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.