Top 6 Resources For Calculating The Size Of The Legal Tech Market

The Total Addressable Market, or TAM, is one of the most important numbers in a startup’s business plan or pitch deck. For those lucky startups in more buzzworthy industries, determining the size of your Total Addressable Market is a quick Google search away. But unfortunately, as a Legal Tech startup, the numbers are a bit (read: a lot) harder to find.

As a Legal Tech founder myself, I went through the painstaking process of trying to calculate my TAM, so I wanted to share what I learned and put together the guide I wish I’d found in my own Google searches.

What is the Total Addressable Market (TAM)?

According to the Corporate Finance Institute, the Total Addressable Market represents “the overall revenue opportunity that is available to a product or service if 100% market share was achieved.” Translated to the Legal Tech world, TAM shows how much revenue a Legal Tech startup could generate if it sold its product to every law firm in its target market. For a traditional TAM analysis, the two main questions you need to answer are:

  1. How many law firms fit the profile for my target market?
  2. What would the total dollar amount be if I sold my product to every law firm in that market?

Without further ado, here are my top 6 resources to help you do just that!


Top TAM Resources For Legal Tech

#6 - HG.org


Source: https://www.hg.org/practiceareas.html 

If you’re like me, your first instinct in your quest to calculate your TAM was to Google the ever-loving crap out of it, hoping that if you entered the right search terms or clicked through enough results, you’d come across the exact information you needed. But if you can’t find a source that already appraised every law firm in your market, why not try aggregating them yourself?

Enter HG.org, the most detailed law firm directory on the internet. Not only does HG.org segment its listings by 260 sub-areas of practice—an incredible resource if you’re targeting more niche practice areas—the database is also broken down by continent, country, state, and city, making it one of the best places to find information about firms that fit your exact target profile.

#5 - FindLaw


Source: https://lawyers.findlaw.com/profile/profiles/lawfirm/a/1.html 

FindLaw is another great resource in the primary research category. With over one million listings, FindLaw has the #1 largest online lawyer directory. Unlike popular competitors that focus on individual lawyers, FindLaw makes it easy to search for actual law firms—ideal for assessing TAM in the B2B Legal Tech space. You can narrow it down by location or practice area, or browse their entire database filter-free—an option that’s hard to find on other lawyer directories. And with the Thomson Reuters stamp of approval, you know you’ve got reliable data on your hands.


#4 - Hexomatic


Source: https://hexomatic.com

Ok, so it's not a source of information in and of itself—but if you read the last two resource descriptions thinking I was out of my mind to suggest manually compiling data from law firm directories to perform your own TAM analysis, allow me to present your secret weapon: Hexomatic.

Using Hexomatic, you can instantly extract pages of information from directories or listings into a spreadsheet, saving you hours of research time and making it easy to manipulate the data you find. You can even use Hexomatic to run multi-step automations, like having the tool scrape every firm name in a directory, click on every listing link, and then extract even more information from every individual listing page. And the best part is, all the features you need to do it are included in their free plan.

Source: Hexomatic dashboard, preparing an automation that can scrape the name of every law firm in FindLaw’s directory.

#3 - Data USA


Source: https://datausa.io/profile/naics/legal-services

Apologies to the international readers, this one’s just for the US—but if you’re looking for information on the American legal market, Data USA is one of my favorite places to go. With data sourced from the US Census and Bureau of Labor Statistics, Data USA provides detailed—and, dare I say, beautiful—information and visuals on various industries and occupations. 

The information and projections on industry size and growth are the most valuable for TAM purposes, but Data USA really shines in its breakdowns of the legal industry by roles, demographics, and location density. Keep this one in your back pocket for developing detailed (and defensible) buyer personas.

#2 - IBISWorld


Source: https://www.ibisworld.com/industry-statistics/market-size/law-firms-united-states/

If you ever found yourself wishing you could unlock all the gated information from Statista without getting charged an arm and a leg, then you’re going to love IBISWorld.

IBISWorld is one of the most comprehensive sources out there on global markets. They produce deep-dive reports on nearly every industry you can think of—and while their full reports can be pretty pricey, they offer a lot of high-quality information for free.

In addition to finding information about the overall legal market in almost any country, IBISWorld has separate reports for 15 practice area sub-markets, like employment law, IP law, and immigration law. But what’s even more interesting is the number of reports you can find about markets ancillary to the legal industry, like online legal services, court reporting, business valuation services, and expert witness consultants. I highly recommend looking through these IBISWorld search results for the ancillary listings alone—you might find some markets for your product that you hadn’t even thought of before.

#1 - Legalcomplex


Source: https://www.legalcomplex.com/2021/07/19/how-big-is-the-addressable-market-for-the-legal-industry/

If you’re in Legal Tech and you’re not yet familiar with Legalcomplex, I’m about to change your life.

Legalcomplex uses a combination of machine learning and expert data analysis to provide the latest insights into the Legal Tech and Reg Tech markets.

Not only is Legalcomplex one of the only sources out there dedicated to our corner of the tech landscape, they’re also the only other source to date that’s written articles on the exact subject of calculating TAM in Legal Tech:

  1. CAT scan: Calculating The Market for Any LegalTech Company, and 
  2. How Big is the Addressable Market for the Legal Industry?

These articles are essential reading for any Legal Tech company on a mission to calculate their TAM.


———

And there you have it! The resources above were a huge help to me in putting together a thorough evaluation of the Legal Tech market, with data I felt confident I could rely on. 

Help me keep this guide up-to-date for future Legal Tech founders! If there are any other resources you think I should add, send me an email or message me on LinkedIn.