SimpleDocs reposted this
Why are there so many AI contract tools flooding the market? Where does this all end? My short take... What's happening now in contract tech is wonderful, predictable, very good for buyers, exciting for vendors—but also very temporary. What do you think? -- Here's my longer take... Most startups spend years trying to find product-market fit. Some land in an established category with their own unique angle (Rippling, Stripe). A lucky few create entirely new categories—think Uber, Airbnb, Twitch. But every so often, instead of a startup finding or creating a category, an external shift forces an entirely new category into existence. And instantly—every adjacent startup has the gift of product-market fit and a massive population of first-time buyers clamoring for it. Think Apple App Store circa 2010—a new platform emerges, and suddenly, every developer is in business and every iPhone owner is buying. I experienced a very small scale market shift like this firsthand a decade ago when new Title IX mandates changed compliance training and reporting requirements for US colleges and universities. A new market opportunity opened up overnight. For six years, we rode the wave and watched the chaos unfold: 📈 Massive sales numbers. 📈New competitors flooding in. 📈Private equity sprinting to acquire and roll up every viable platform. And then? Just as fast as it started, it was over. 📉The market saturated. 📉No more wild funding rounds. 📉No more inflated valuations. 📉No more new entrants. The market stabilized. One winner prevailed. But that was small scale. A tiny market, relatively speaking. In contrast, the market opportunity for AI-powered contract tools is just ENORMOUS. Larger than CLM. Larger than document automation. Larger than eSign. So yes, every founder, startup, and incumbent is chasing this opportunity. It’s worth billions to the winners. And your LinkedIn timeline reflects it. But here’s the harsh reality: ☠️ Most startups won’t make it (like 98%)—they just won’t acquire customers fast enough. ☠️ The greenfield will disappear as first-time buyers pick their horse and stay. ☠️ The funding will dry up as growth stalls for those who don’t scale. Until then? For the next five years (or less), this will be an all-out sprint to capture market share—at a level we’ve never seen in Legal Tech. As a founder, there’s nothing more exciting than moments like this in business. At SimpleDocs and Law Insider we are working around the clock, quite literally. As a lawyer, I've never seen this scale or speed of new tech adoption in legal—it's so freakin' cool. And for the adopters (the buyers), this is your time to learn, test and apply your considerable leverage against the vendors who are vying for your business. Tell us what you need. Tell us what you're willing to pay. Demand it. You're in charge this time around. 💪 #AI #Contracts #LegalTech #SaaS #Startups #Growth