NEW YORK, March 7, 2018 /PRNewswire/ -- Mighty, the leading provider of software for legal and medical funding companies,has raised $114M to provide financing to businesses on its platform and grow the team.
Every year, millions of people in the US are injured in auto, construction, and other accidents and will receive billions in
NYC-based Mighty is a cloud-based technology platform for personal injury litigation finance companies, similar to Ellie Mae in mortgage finance. Mighty previously raised $5.25M for a peer-to-peer marketplace which it shut down 18 months ago to focus on its software platform. Since then, the company has become the de facto market leader with over 60 personal injury finance companies running their businesses on the all-in-one MightyOS platform.
Those companies have shed light on another problem resulting from a still-maturing industry that Mighty's fundraise solves: lack of access to institutional capital sources. As a result, most funders suffer from a high cost of capital not commensurate with their historical performance or the risk profile of the asset class. The industry also lacks standard liquidity options, like secondary marketplaces, found in other financial markets. This leaves funders with little control over their cash flow and at-risk of closing up shop if they can't keep up with increasing consumer demand.
"As a former funder whose business was stifled due to a lack of purpose-built software and institutional financing, I know firsthand the challenges of being early in a nascent space," says Mighty Co-founder and CEO Joshua Schwadron. "One sign of maturity of a market is when service providers come in and start serving the companies in that industry. Mighty is the first to do that in the personal injury financing space, which will have positive effects on the originators we serve, plaintiffs, and the justice system overall."
To help funders with these financial problems, Mighty has launched Mighty Capital, a specialized investment fund backed by major institutional investors. Mighty Capital offers two products, Mighty Financing and Mighty Cash Flow, to help funders access capital for their ongoing originations and get liquidity, respectively. Mighty's financing is strictly for funding businesses and will not be used to finance plaintiff-consumers directly.
"Mighty Capital is uniquely positioned to help funders with financing because we have deep industry expertise, as well as the ability to make fast decisions with flexible terms and non-competitive to our customers," says Co-founder and Chief Growth Officer Dylan Beynon. "Since launching Mighty Capital, the response has been overwhelming. We've already begun helping over fifteen funding companies unlock access to the capital markets and take their businesses to the next level."
About MightyMighty is on a mission to help millions of injured plaintiffs get a better deal from the justice system. Accordingly, Mighty provides industry-specialized software and capital to companies that advance funds to plaintiffs and their doctors. Mighty's market-leading B2B software, MightyOS, is an all-in-one core system designed to manage the entire legal and/or medical funding process. In addition, through its new $105M fund of funders, Mighty Capital provides tailored capital and cash flow solutions to customers using the Mighty software. Mighty is backed by top-tier venture firms including IA Ventures and Tribeca Venture Partners. To learn more, visit mighty.com/
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