In court, the little guy typically ends up on the short end of the stick.
Corporate defendants and deep-pocket insurance companies have deep pockets, massive legal staff, and a playbook that typically consists of dragging out cases until the other side is too exhausted, or too broke, to keep going. This is exactly the problem New York-based legal tech startup Mighty set out to solve. Through software solutions and funding support to individuals navigating personal injury claims, Mighty aims to tip the scales towards a fairer legal system.
So how much did Mighty raise in funding? Well, way back in 2018, the firm raised $9 million of equity capital in a round co-led by IA Ventures and Tribeca Venture Partners. But there was more. Mighty also introduced a massive $105 million investment fund called Mighty Capital, backed by institutional investors that had a New York presence. This two-pronged funding approach helped Mighty expand its services, and individuals being sued for personal injury could now access the assistance they needed to defend themselves against deep-pocketed defendants.
How Mighty is changing the legal landscape
The legal system can be an intimidating and expensive place, especially for personal injury plaintiffs. If you’ve been in an accident and decide to sue, chances are you’ll be up against an insurance company that will do everything in its power to delay or deny your claim. Without financial backing, many plaintiffs end up accepting lowball settlements just to stay afloat.
The major product of Mighty is MightyOS, a bespoke software product developed for legal and medical funding companies operating in the personal injury realm. The application streamlines the monitoring of cases, underwriting, contract managing, and servicing, enabling the funding companies to service plaintiffs better. With its increased efficiency and transparency in law funding, Mighty makes financial support available as swiftly as possible to the deserving entities.
Who pays for damage in a no-fault state?
One of the most important concepts in personal injury law is the difference between “fault” and “no-fault” insurance states. This is important when trying to figure out who pays for car damage in a no-fault state, if you ever find yourself in that situation. In no-fault states, your own insurance provider pays for your medical expenses and lost wages, no matter who was at fault in the accident. This is accomplished through a form of insurance known as Personal Injury Protection (PIP) or Medical Payments Coverage (MedPay).
But when it involves harming another person’s property, the rules are a bit different. In a no-fault state, the at-fault party is still responsible for paying to have the other person’s vehicle repaired. This means that even in a no-fault system, determining fault is still important because it decides property damage claims and lawsuits in instances of severe injuries.
Mighty’s actions in the legal tech sector work indirectly in reference to these pieces of legislation. By supporting medical and legal funders, the company ensures those who qualify for compensation, no matter if a no-fault or fault state, can achieve the financial relief necessary to negotiate the claims procedure.
The Mighty Capital role
With its software platform, Mighty added Mighty Capital, a $105 million investment fund that will fund legal and medical funders. These funders are central actors in the personal injury legal system because they provide plaintiffs with capital to cover medical bills, living expenses, and attorney fees until they receive their settlements.
It should be noted that Mighty itself does not lend money to plaintiffs directly. Instead, it insures the legal and medical funding business, supplying funders with the capital they require to provide financial assistance to plaintiffs and medical providers. By backing this infrastructure, Mighty enables plaintiffs to receive the fair compensation to which they are entitled.
The “delay, defer, and deny” strategy
If you’ve ever been in an accident and tried to make a claim, you’ve probably encountered the frustratingly slow process that insurance companies use to handle payouts. This isn’t by accident: It’s a deliberate strategy used by insurance companies and corporate defendants to pressure claimants into accepting lower settlements. The longer they can drag out the process, the more desperate plaintiffs become, often leading them to settle for far less than they’re entitled to.
Mighty’s aim is to subvert this process by making the financial means of plaintiffs available in order to withstand these delaying strategies. When backed with adequate funding, plaintiffs are able to hold out for a fair settlement and not have to settle hurriedly and unjustly.
The rising role of legal tech
Legal tech is a fast-expanding industry, and firms such as Mighty are at the forefront of transforming an industry that has historically been resistant to new technologies. By combining software solutions with financial support frameworks, Mighty is assisting in making the legal process for personal injury plaintiffs more efficient, transparent, and equitable.
But the reach of legal tech goes beyond claims for personal injury. The industry as a whole is becoming more accessible with increasing numbers of tools and platforms created to help people and small business owners break through legal barriers. As Mighty grows, it serves as a case study of the ways that technology and financial innovation can intersect to disrupt established power dynamics.
The future of Mighty
Since it was first funded, Mighty has expanded and evolved, adapting to the changing needs of the legal and medical funding industries. The company’s focus on justice and transparency has positioned it as one of the leading organizations in the fight against unfair settlement tactics. With its strong financial backing and innovative software tools, Mighty is poised to continue challenging the status quo and empowering plaintiffs for years to come.