(Startup Daily) - Sydney-based JustFund launched in 2022 cofounded by former lawyers Andy O’Connor and Jack O’Donnell, and fintech entrepreneur Craig Carroll.
The raise was led by Xilium Capital, with support from Startmate, US-based Legal Tech Fund, impact investor Tripple and Fin.Amp’s Dom Pym.
The fintech also took on $7 million in venture debt.
Global Credit Investments chipped in a $75 million senior debt facility for the startup’s line of credit facilities for legal bills.
Craig Carroll, the fintech’s executive chairman, said the capital with support their legal funding for people seeking a property settlement in the wake of a divorce or relationship separation.
“JustFund’s flexible legal funding has been uniquely tailored to a process that is fraught with emotional turmoil and financial strain,” he said.
“We often see that the situation is exacerbated by disparities in financial sophistication, access to funds, income capacity or credit scores between parties.
JustFund has built a network of over 600 accredited law firms nationally, approving more than $95 million in legal funding for their clients.
The fintech charges 9.85% interest on the loan, as well as a $590 establishment fee and $49 monthly admin fee. The loan is repaid when the property matter is settled.
O’Donnell, the co-CEO, said many of their clients apply because they’re not eligible for a personal loan and end up unable to complete the separation.
“Typically, they have started the separation process and need additional funding to cover legal fees, or they seek financial assistance from the outset of their matter so they can better manage rent, mortgages, school fees and other living costs on top of legal fees,” he said.
His co-CEO, O’Connor, said they help people move on with their lives.
“Unlike traditional lenders, we base our assessment on someone’s legal entitlement to relationship assets,” he said.
“This enables us to provide flexible legal funding that doesn’t rely on income, employment or a credit score.”
JustFunds was named Positive Impact Fintech of the Year in the 2024 FinTechAustralia Finnies awards.
By Startup Daily
November 4, 2024
