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Mighty launches first online marketplace enabling plaintiffs to access portion of future settlement
Mighty, a New York based startup backed by a $5.25M Series A round of financing, today announced its launch—with the mission of empowering plaintiffs to get a better deal from the justice system.
Mighty’s online marketplace connects plaintiffs in civil litigation with investors competing to advance a small portion of their future settlement.
It takes an average of two years before plaintiffs see their first penny—and many struggle to pay their living expenses, such as rent and accumulating medical bills, while they fight for a fair settlement. Mighty is transforming the world of plaintiff financing by creating an innovative marketplace that’s transparent, fair, and easy to use. All Mighty financing is structured as a non-recourse investment, meaning that if a case loses, a plaintiff does not owe investors anything.
“The justice system doesn’t play fair—and it’s increasingly stacked against the little guy,” said Mighty CEO and co-founder Joshua Schwadron. “Big defendants have a stranglehold on people’s ability to settle even the best cases in a timely fashion, often making lowball offers and dragging their feet. Mighty changes the equation by making it possible for people to continue living their lives and paying their bills while engaged in a lawsuit.”
Instead of funding cases directly, Mighty makes it possible for a new class of investors with legal expertise to seamlessly fund individual cases through its online marketplace, offering plaintiffs faster, simpler, and more competitive financing.
The average plaintiff on Mighty receives $5,000 in financing, most often toward fighting a case involving a personal injury. Mighty only works with plaintiffs who are already represented by an attorney, and the financing is intended solely for plaintiffs’ living and medical expenses.
“Growing up in a single-parent household, I've seen firsthand how far a little money can go for people struggling to get by,” said co-founder Dylan Beynon. “Seventy six percent of Americans live paycheck to paycheck, and when life is disrupted by an unexpected event, a few thousand dollars can make all the difference.”
"Large defendants and insurers have the money to take cases to the very end,” said Charles Silver, a Professor of Law at University of Texas who has written extensively on the topic. “Giving plaintiffs access to financing during their lawsuits can help level the playing field. This will promote justice by producing settlements that reflect the merits of claims."
Mighty’s $5.25 million Series A round of financing was co-led by Tribeca Venture Partners and IA Ventures, with participation by Daher Ventures, Fintech Collective, Vast Ventures and a number of well-known angel investors. With this financing, Tribeca Venture Partners Managing Partner Brian Hirsch and IA Ventures Managing Partner Roger Ehrenberg have joined Mighty’s board.
“Mighty is the future of law and it’s addressing a massive and underserved market,” Hirsch said. “We are excited to invest because, for the first time ever, Mighty has developed a platform that utilizes technology to deliver justice to the people who need it the most.”
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