Max Junestrand is the co-founder and CEO of legal AI startup Legora, speaking with Y Combinator General Partner Gustaf Alströmer about the company's fundraising.
Insight
Legal AI innovation is scaling parallel queries, not prompt engineering
“And the big innovation there does not really come from, you know, how do you prompt and work with the model, but it's how do you make this run at scale? You know, how do you run a 100,000 queries in parallel at the same time and make sure nothing breaks.”
Opinion
Legal due diligence commoditized as clients refuse paying for manual review
“And now it's becoming almost a commodity where you're expected to do it, but clients are also not really that excited to pay for Very simple contract review when they know that AI can do, you know, 99% of it.”
Insight
Junestrand: Undifferentiated work and price pressure force law firms into AI adoption
“A lot of legal work is low differentiation. You know, if you're doing a DD from, you know, law firm X or law firm Y, kind of getting the same deal. And so when you have this perfect Equilibrium of services and somebody disrupts that by taking a new approach. C…”
Insight
Junestrand: Legal AI will not cause a pricing race to the bottom
“And it, and it's also not a race to the bottom in terms of pricing. Because if you pull down, let's say the cost of a due diligence, you free up more time to spend with a board on advising them on, you know, a really complex merger or a really complex acquisit…”
Assertion Not checkable as stated
Spanish law partner used Legora in court to fact-check opposing counsel
“There was this amazing situation that one of the Spanish partners at a firm called Pere Theorca had, where he went into court, he had put all the evidence and all the documents from the opposing party in Legora, and he was actively querying it During the heari…”
Opinion
Legora's 30 engineers outship legacy legal tech incumbents with thousands of developers
“So our ability to out ship or, you know out deliver these teams of thousands of engineers with just 30 is insane. And so we have instead managed to build a company with, I think at the time of recording, it's about a hundred where like our velocity It's way hi…”