Amid a spate of novel law firm launches, Lex Generalis has now hit the market. It’s a new legal business backed by VC and private equity group Anzu Partners, and will focus on offering flat fees as it supports startups and research institutions.
The news comes amid a range of creative legal business moves, including AI-first law firms, legal tech companies buying ALSPs and creating their own regulated practices, and PE funds seeking to ‘roll-up’ parts of the market.
In this case, it’s not so much an AI-backed play, but is still seeking to be a challenger to the status quo. Lex Generalis will focus on IP and investment advice, and as mentioned, offer flat fees or ‘fixed fees’, rather than bill by the hour.
As they say: ‘Born from Anzu Partners’ experience supporting early-stage companies, Lex Generalis addresses one of the biggest barriers to innovation: the high and unpredictable cost of legal services. The firm offers a flat-fee model for corporate and IP legal needs, enabling founders and researchers to focus on growth, rather than managing variable legal bills.’
Another aspect is that this is not so much a law firm that made friends with a VC fund, but rather that it appears to have grown out of the fund itself. One of the key lawyers in the new business is John Sears, an IP specialist……but who also has been the Director of IP at Anzu Partners since 2019. His LinkedIn page shows that he still is at the fund, as well as operating as a partner at Lex Generalis. And, its CEO, Cathryn Paine, is also a partner at the fund.
Now, one may then ask: how is this possible, given that it’s a US law firm? (Note: in the UK this would be a relatively easy scenario, as the rules here are very liberalised). In the US’s case, the fact that Lex Generalis lists its head office as Phoenix, Arizona is key. This state allows ‘alternative business structures’, as does Utah. But, it’s worth adding that several of the lawyers listed on their website do not appear to be based in Arizona and operate out of major legal centres such as New York or Washington DC.
It’s not clear exactly how the structure operates, but the US is certainly moving toward a more liberal stance. For example, Covenant, an AI-driven law firm based in New York has a legal business and a separate tech business, which has been allowed – and that’s without either element needing to be based in Utah or Arizona.
Paine, the CEO, commented: ‘Lex delivers the specific services our clients need – IP and General Counsel. We’re delivering the right services, at the right cost, and we’re a first mover in this market.’
While Sears added: ‘Lex Generalis was created to solve problems we’ve seen time and time again: unpredictable legal spend, misaligned IP strategies, and partnerships that become a deal killer rather than a value creator. Our mission is to give deep‑tech founders venture‑ready counsel that’s technically fluent and capital‑aware so founders can keep building.’
As to legal tech, the new firm does indeed highlight the use of AI and other tech-related aspects, such as an ‘always-on’ data room, and that they will use AI to ‘reduce costs while delivering critical services: contract review, employment agreements, investor readiness preparation, cap table management, patent filings, and strategic IP aligned with product roadmaps’.
Is this a big deal? Well, it’s fairly unusual for a VC fund to directly create a law firm, especially one where some of its own staff will be part of the legal business. However, it’s now a signal that things are changing in the legal sector and creative new structures that don’t rely on high levels of ‘traditional’ associate leverage are proliferating.
As mentioned with Covenant in a previous AL piece, there really are very few barriers to doing this if you are a lawyer with sufficient experience to get started. There are plenty of new models to choose from and it would seem that the market is receptive.
You can find more about Lex Generalis here.
—
Legal Innovators Conferences in London and New York – November ’25
If you’d like to stay ahead of the legal AI curve then come along to Legal Innovators New York, Nov 19 + 20 and also, Legal Innovators UK – Nov 4 + 5 + 6, where the brightest minds will be sharing their insights on where we are now and where we are heading.
Legal Innovators UK arrives first, with: Law Firm Day on Nov 4th, then Inhouse Day, on the 5th, and then our new Litigation Day on the 6th.
Both events, as always, are organised by the Cosmonauts team!
Please get in contact with them if you’d like to take part.
Discover more from Artificial Lawyer
Subscribe to get the latest posts sent to your email.