Litigation Funding

Litigation funding, also known as litigation finance, third-party legal funding, or settlement funding, occurs when a party unrelated to a dispute provides capital to a plaintiff, law firm, or business pursuing a claim, typically after assessing the merits of the case, in exchange for a percentage of any settlement or damages recovered. Solutions in this category span the industry built around that arrangement. Institutional funders finance commercial litigation, arbitration, and portfolios of law firm cases, evaluating claims, managing a book of funded matters, and tracking case status and expected returns. Other providers focus on pre-settlement or post-settlement advances made directly to individual plaintiffs, most commonly in personal injury matters. Some funders source deals directly, while others work through specialized brokers who identify and package suitable claims on a funder's behalf, particularly for commercial and insolvency recovery claims. A newer set of platforms applies AI-driven intake and algorithmic case scoring to identify and evaluate smaller claims at scale before routing them to attorneys or funders. Funding is provided on a non-recourse basis tied to the outcome of the claim, distinguishing it from conventional lending. Generative AI is increasingly used to help funders and originators assess case merit and likely value across a growing volume of applications.