We have all heard of or even sponsored projects on famous platforms such as Kickstarter or Indiegogo. Other sites are working offering equity based crowd investment opportunities, such as FundedByMe. Now, a New York – based service gives the crowd a chance to fund, or invest, in lawsuits.
The company in question is called LexShares and its platform connects accredited investors with plaintiffs in commercial lawsuits. If the plaintiff wins, the proceeds of the settlements are divided into portions and handed out to the investors. LexShares is said to have been created in order to able common people or small firms to battle large and money-strong corporations, which sounds quite altruistic.
The accredited investors can review each case online and make a judgment on whether to invest or not, just like a regular crowdfunding site. TechCrunch reports that the company targets a wide range of commercial claims at all stages of litigation. It also has several layers of privacy built into the platform, which makes litigants able to disclose as much or as little information as they wish to the aspiring investors.
According to Springwise, the cases go through a kind of application process where LexShare’s team of law professionals review each case. If they believe that the plaintiff has a chance, the case is posted on the site for the investors to review. It is a win-or-lose scenario and the plaintiffs do not have to pay back any of the investors if the case is unsuccessful.
The new crowdfunded lawsuits platform is a sign of the times. We want to help each other but we also want new ways to make money. In an era where the sharing economy is continuously breaking new ground, where anyone can fund their startup and the internet is continuously equalizing the world we hope that LexShares provides something good to the world, even if sceptics will rightfully be cautious in their predictions when money is involved.