LegalPay, an India-based litigation and interim finance provider, has teamed up with Florida-headquartered hedge fund Naples Global in order to introduce a $5 million fund for founders so they can protect their rights during board-related disputes.
The new fund has mainly committed $5 million (appr. ₹37 crore) to deploy with an option to increase the total exposure for funders who are interested in fighting their litigations and arbitration.
The firm noted:
“LegalPay is of a strong belief that all founders have the right to be heard in a strong, safe and legal manner that would enable them to put their case in a much more beneficial and will help them to be heard.”
Kundan Shahi, CEO at LegalPay, stated:
“Founders put their blood and sweat to build start-ups but often find investors arm twisting them on several fronts. Since most founders are first-generation entrepreneurs, they lack the financial muscle to assert their legal rights.”
Shahi also mentioned that the concept or idea behind this product is to establish a fairer and level playing field for those frustrated founders so that they don’t eventually start giving up on their legitimacy due to financial limitations.
Kelly Morris, Partner at Naples Global LLC, added:
”Our growing investor community continues to remind us that the demand for alternative investments is increasing and now we need outside the US, and LegalPay and their leadership team fit that category perfectly as they are creating a lucrative asset class in Asia.“
The US-based hedge fund is now focused on further expanding its asset allocation as the fund continues to grow its US operations and service into global markets.
Morris also noted that their investment philosophy “is rooted in supporting exceptional teams to grow valuable businesses.”
LegalPay offers non-recourse funding in commercial legal claims in return for a share in the final recovery, meaning that the litigant must pay only after a realization of the claim.
It’s a startup that is supported by Hedonova, 9Unicorns, LetsVenture, Venture Catalysts and Amity Innovation Incubator.
