Insight
Chasen: Lawyers are difficult software buyers lacking business and tech skills
“They're very argumentative and they are very educated in their craft. However, they're not as educated in like ways of running a business or technology.”
Insight
Chasen leverages partner channels because law firms resist direct online marketing
“Really we've been getting a lot of our a lot of our acquisitions through partner channels. So it's a lot harder to just like market to law firms cause they're not really a huge online business. Like you know, like a fast company would be, or an enterprise comp…”
Assertion Not checkable as stated
Lexicata maintains a customer acquisition cost of roughly $50
“Like it's in the, like, you know, 50 to hour range mainly because we don't do a ton of marketing because it's just hard to like
Find these people.”
Assertion Not checkable as stated
Lexicata's average customer pays approximately $100 per month
“Average customer is about a hundred bucks a month.”
Disclosure
Lawkick pivoted to Lexicata after nearly exhausting its initial seed funding
“So when we first started the company that was Lawkick, we raised a few 100,000 dollars, And we basically were close to out of money and that's what kind of like forced the pivot. And since then we've been completely bootstrapped off the status.”
Disclosure
Lexicata used a DBA to retain Lawkick investors without resetting equity
“And yeah, we just rolled those investors and we just kind of do a DBA for Lexicata.”
Assertion Not checkable as stated
Lexicata serves approximately 3,000 law firm customers
“Like in the, like the low thousand, like 3000.”
Assertion Not checkable as stated
Lexicata has doubled revenue year-over-year for several consecutive years
“So I'd say we've more than doubled like year over year, pretty much for the last few years.”
Assertion Not checkable as stated
Lexicata's $400 onboarding fee makes customer acquisition immediately profitable
“We have like a minimum, like about a 400 onboarding fee. So we're pretty much, you know, making money on people immediately.”
Assertion Not checkable as stated
Lexicata reduced monthly logo churn to the mid-1 percent range
“Historically it's been about two, two and a half percent per month. And right now we're dropping sub two now. So we're like the mid one.”
Assertion Not checkable as stated
Lexicata calculates customer lifetime value between $5,000 and $10,000
“Our LTV right now is somewhere like North of five K somewhere five to 10, obviously that'll change over time. And then in terms of months, like it's going to be somewhere probably between I think it's something we need like 16 to 20 months, something in that r…”
Assertion Not checkable as stated
Lexicata has operated cash-flow positive since its inception
“Yeah, we always have been. That's always run the business.”
Disclosure
Lexicata charges $50 to $1,000 monthly plus setup fees
“We started about 50 bucks a month for a single user and we go all the way up to like, you know, a thousand bucks a month, depending on the size of the firm. And then you can do an annual plan plus the, you know, at least a couple of hundreds per setup up to a …”
