Valla Raises $2.7M to Democratize Legal Support for Employees Using AI

Valla raises $2.7M to make legal recourse more accessible to employees

After a while, Danae Shell got tired of hearing the same story over and over again. "Something bad would happen to someone at work, and the story always ended the same way," she told TechCrunch. "They just left, because doing anything else was incredibly complex and expensive." One doesn't need to look far to notice that for many people, seeking legal recourse feels so daunting and complex that many just don't try to. Even for someone with a cushy tech job, the prospect of going against their company is daunting. That bothered Shell so much that in 2022, she launched Valla, which seeks to make legal support more accessible to workers. The company focuses on employment law, and since its launch, it says, more than 12,000 workers have successfully brought complaints against employers and negotiated settlements. "The basic thesis of Valla was, 'If we can build tools that let someone file their tax return from their mobile phone, surely we can build something that can help them manage their own legal issue,'" Shell said. Valla platform enables users to collect their own evidence, generate documents, and then talk to legal experts who "coach" them through what the legal process would be for each stage of their case. For example, Shell said, a user can keep track of an ongoing issue at work, draft a Tribunal claim, and then purchase a coaching package to prepare for the preliminary hearing. Like nearly every other startup these days, Valla also uses AI to streamline knowledge transfer. "The GenAI engine in our platform acts as a legal secretary in the background," Shell said. "It does everything from briefing the coach on the case, taking notes and actions during any calls, and picking up all the admin and reminders as the case progresses." Investors seem to like what they see at Valla: Today, the company said it had raised a £2 million (about $2.7 million) seed round led by Ada Ventures. Active Partners and Portfolio Ventures, as well as returning investors Techstart and Resolution Foundation, also invested. Shell said Valla started using generative AI in early 2023 and paired with the early traction her product received, that helped investors see the potential of her product. The company will use the fresh capital to boost marketing, build relationships with worker unions and insurers, and build more AI features within the platform. After employment law, Shell said the company hopes to expand into small claims and tenancy. "Then we will broaden out to other geographies," she said. "We're already looking at opportunities in the U.S. and Europe."

Edinburgh legal tech start-up secures £2 million seed funding

Valla has secured £2m in seed funding. The Edinburgh-based dispute resolution firm's round included investment from Ada Ventures, Active Partners and Portfolio Ventures. Techstart Ventures, which led the company's first round, and existing backer Resolution Foundation, were also involved. Founded by Danae Shell, Valla is aiming to simplify the legal process by enabling users to collect evidence, generate necessary documentation and get fixed-price support. "The legal world is experiencing its own watershed moment," stated Shell. "AI is completely redrawing who can access justice - but ordinary people are being left behind. "We're flipping this on its head by putting powerful, tailor-made legal tools directly into workers' hands, not just those with deep pockets." Since launch, Valla has empowered around 12,000 workers to raise complaints, negotiate settlements, and navigate the Tribunal process. Demand for the platform's services have more than doubled year on year. Costs range from £10 for a template to £250 for three hours of support from an employment lawyer. Check Warner, founding partner at Ada Ventures, commented: "Valla exemplifies precisely the kind of game-changing vision we're passionate about supporting. "They've spotted a vast, overlooked market and used emerging technology to create an innovative new solution that was impossible even a few years ago. "As AI reshapes traditional legal billing models, Valla's transparent, accessible approach perfectly positions them to become the definitive platform for workplace rights." The fresh capital will be used in new marketing initiatives, to create additional AI-augmented tools and to work on strategic alliances with unions and insurers. "Valla is a great example of how technology and delivery model innovation can open huge new markets in traditional industries like legal," Shell added. "We're building new types of services for individuals who would otherwise fall through the gaps in the current system." Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.