LexShares, a crowdfunding platform founded by Jay Greenberg and his business partner Max Volsky, launched today. Investors buy a stake in the outcome of a lawsuit by giving businesses the cash they need to operate while their cases go forward.
“Peachtree and Lawcash and about 30 other companies who do personal injury and slip-and-falls, that’s one segment of the market. That’s not what we do,” said Greenberg. “We’re looking to fund a commercial lawsuit with $10 to $40 million in claim value.”
According to the Boston Globe, demand has been brisk, Greenberg said. LexShare’s first offering, described as a product liability case against a Fortune 500 company seeking $250,000, secured 100% funding. The target return for investors on each suit is 50 percent — high, perhaps, but commensurate with the risk involved, Greenberg said.
New York- based LexShares conducted a seed round led by the Boston-based Atlas Venture for an undisclosed amount.
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