What’s Going On Here?
The FinTech industry is hotting up and law firms are keen to make sure that they stay close to the action.
What Does This Mean?
Commercial firms have strongly marketed to FinTech startups - some firms are even offering their services for free!
Why Should Firms Care?
FinTech companies have to immediately deal with complex legal issues from their inception. Dealing effectively with issues of corporate finance, data protection/security, banking regulation etc. are key to the success of these companies.
It’s is a fast-moving (and potentially very profitable) new area of the UK tech industry and law firms are keen to make sure that they bag the most exciting clients. Some have come up with inventive ways to make sure that this happens. Addleshaw Goddard introduced their ‘AG Elevate’ scheme which offers FinTech startups 12 months of legal advice absolutely free! They’re not the only ones doing this, with Slaughter & May and Simmons & Simmons offering similar programmes.
These schemes build the foundations for a relationship between the firm and their clients and really do benefit both sides. As much as law firms want these clients, the legal issues that FinTech companies face tend to be complex. One tech company that qualified for the AG Elevate scheme wrote about the help that they’ve received on dealing with how banking regulation will change after Brexit. (You’ll find a link to their blog post below - it’s a worthwhile read!)
This industry is booming in the UK. FinTech companies are simplifying everything, from transferring money to your mates to operating global financial institutions. The government consider the UK as ‘the Global FinTech hub’ and have decided to create a FinTech week this year (it’s sometime in April).
As investment increases, expect to see the involvement of commercial law firms follow suit.
Blog post by Mobility - Why we joined AG Elevate: http://blog.mobillity.co/why-we-joined-a-legal-accelerator-program/
Article written by Idin S.
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