Why We Invested in Legal Karma: Revolutionizing Legal Offerings for Financial Services

In today’s evolving economic landscape, financial institutions are finding it increasingly challenging to meet the diverse needs of their members. One significant aspect that often proves elusive is the ability to seamlessly integrate legal services into their offerings.

Looking just at Credit Unions, a staggering $3.84 billion in estate planning is referred out to 3rd parties because unions lack scalable in-house solutions. Outsourcing this kind of offering leads to a fragmented customer journey and lost revenue. The urgency is amplified by the impact of high interest rates, which have been denting margins even further. With generational wealth in transition, Credit Unions are not just eager, but desperate, to retain their members’ wealth, especially amidst a 4% decline in memberships in 2022. To combat this attrition and remain competitive, Credit Unions are actively seeking innovative strategies to attract and retain new members, emphasizing the need for diversified non-margin revenue streams. Historically, Credit Unions have struggled with weak business penetration, with merely 2% of customers engaging with professional services on an annual basis.

This is where Legal Karma steps in, presenting a paradigm shift with respect to how financial services can provide professional legal services to their customers. To start, Legal Karma is serving Credit Unions, empowering them to seamlessly integrate legal products by white-labeling and embedding them right into their existing systems. The process is streamlined and efficient. Legal Karma’s experienced team curates a comprehensive template library, ensuring that documents are appropriately tagged and provided with drafting guardrails to handle even the most complex and conditional situations. Credit Unions can select the specific legal products they wish to offer, and then effortlessly utilize Legal Karma’s embeddable components to collect necessary data and present a curated list of downloadable documents to their members. The remaining step involves members logging into their respective portals and selecting the legal package that best fits their needs.

The impact of Legal Karma’s solution has already been realized, with the first set of customers achieving an impressive 4% conversion rate.

Meet the Visionaries Behind Legal Karma

Kory Kelly — Co-Founder & CEO, Kory created and led trade organizations for F500 leaders, achieving $4M in annual revenue under Board.org, setting the stage for his leadership at Legal Karma.

Mauricio Cano — Co-Founder & CTO, Mauricio, or Mao, as he is known, is a Carnegie Mellon graduate in Electrical and Computer Engineering. His journey began as an ethical hacker, working on Air Force contracts and an AI company focused on Site Reliability Engineering.

Their Big Vision

Their shared vision is simple — to help companies unlock new revenue streams by seamlessly integrating Will and Trust technologies. In a world where the intersection of legal services and financial offerings has gone underserved, Legal Karma’s solution emerges as a beacon of hope for bedrock institutions striving to provide a comprehensive suite of modern services to their members. Legal Karma is paving the way for an efficient, member-centric approach to legal services within the financial sector.

The company successfully raised $2 million from investors including Amplify, Everywhere, Forum, SaaS Ventures, The Legal Tech Fund, Altari Ventures, and Aleph One Ventures.

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