LawtechUK funding

Legal tech sees 35% increase in external investment as government invests £4.5m in incubator

LawtechUK, a Ministry of Justice-backed initiative supporting technology startups in the legal sector, has secured further funding to enable it to continue operating for the next three years. 

The programme, currently delivered in a partnership between CodeBase and Legal Geek, will receive an additional £4.5 million over the next three years.

Last year, UK-founded lawtech companies secured a total investment of almost £189 million – up 35% from the year before. The government has described the legal services sector as “a hidden super-power of the economy”, estimating it generates more than £43 billion a year and employs more than 317,000 people across the country.

The minister for courts and legal services, Sarah Sackman KC, said: “The UK isn’t just keeping pace with the global legal tech revolution – we’re leading it.

“With 44% of all European lawtech startups calling the UK home, they know Britain is where innovation happens. We have no intention of slowing down, which is why we’re investing £4.5 million to keep the UK at the frontier of legal technology.”

Beth Fellner, director of Legal Geek, said:

“We are delighted that LawtechUK has been extended by the Ministry of Justice, enabling us to continue our work alongside CodeBase to drive digital transformation in the legal sector. We are hugely proud of the positive impact that the initiative has made on boosting the lawtech sector and progressing diversity and regional growth across the UK.

“We have hosted community events across nine different UK cities so far, and have seen a notable increase in female-founded lawtechs, many of whom successfully raised funds in the second half of 2025. We are excited about the next phase of the campaign as we look to further develop a culture of innovation within the legal services sector and grow its vital contribution to the UK economy.”

Jon Hope, CEO of CodeBase added:

“We are delighted to receive this seven-month extension, which allows us to continue working with Legal Geek to maintain the incredible momentum LawtechUK has built over the last three years.

“At CodeBase, we operate with a ‘founder first’ mentality, and this bridging period ensures we can continue our vital work supporting the pioneers and entrepreneurs in the UK’s legal sector without interruption. By focusing on delivery that reinforces the UK’s reputation as a global leader in digital legal innovation, we are ensuring that the next generation of lawtech founders has the platform they need to scale and succeed.”

Commenting on the announcement, Law Society of England and Wales CEO Ian Jeffery said: “Generating £60 billion annually, the UK legal sector is a world-leading economic powerhouse that provides the necessary stability for other sectors to innovate, invest and grow. With 40% of global business and financial transactions governed by English and Welsh law, we must embrace the new technology landscape to stay competitive.

“The government’s decision to extend the funding for legal technology is vital but more is needed. While the profession is eager to integrate AI, significant barriers remain. We urge the UK government to provide more support to smaller firms and non-profits through grants, tax incentives and loan schemes.

“Upskilling lawyers across the board is critical to ensure responsible and productive technology adoption. Government-funded courses for the legal sector would be a major step in closing the knowledge gap.

“We look forward to working with the government to ensure a level playing field. An innovative legal sector is key not only for the profession but for the entire UK economy. With the right regulation and support, England and Wales can continue to lead the world as a renowned legal centre.”

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