AxDraft, Ukrainian legaltech startup, got enrolled in the program of the famed American seed accelerator Y Combinator. This year, Y Combinator improved the terms for its residents – instead of a $120,000 investment, the startup received $150,000 in exchange for 7% of the company. Yuriy Zaremba, the founder of the startup, informed AIN.UA about this development.
The startup has also introduced an updated AxDraft Business product. This is a free service that helps entrepreneurs draw up the necessary legal documents, for example, a contract or an acceptance report. The service was improved and then launched on the US market – new content was added to cater to the needs of American customers in AxDraft Business, which is available only there (IP address filtering). Also, a business model appeared, earlier it was only free.
“We provide free documents for startups in the US in a Do-It-Yourself model, because we don’t see the value in the document itself. If a startup wants to get a follow-up, advice or analysis of contractor’s comments with respect to our contract, it is possible to upload them to AxDraft and we will provide analysis at a fixed price (we are still experimenting with the price) in collaboration with lawyers who use AxDraft in their work,” Yuriy Zaremba, the AxDraft founder, explained for AIN.UA.
We can get a high margin at a low fixed price for services because all participants of the process work use AxDraft.
In Ukraine, this model of monetization has not yet been launched, it is still being tested. Content for Ukraine is focused on small businesses and is completely free. Earlier, the startup attracted investments with an estimate of 1.33 million euros from Overkill. At that time, Zaremba informed that the company’s founders moved to Silicon Valley and were engaged in product development in the United States.
