Zapproved Raises $15M For Its Cloud-Based eDiscovery Service


Image Credits:

Zapproved, a Portland, Ore.-based legal software startup that helps businesses comply with data-retention rules and during the eDiscovery process when they face litigation, today disclosed that it has raised a $15 million funding round led by K1 Investment Management. This round brings Zapproved’s total funding since the company launched back in 2008 to more than $20 million.

As Zapproved’s founder and CEO Monica Enand and VP of Marketing Chris Bright told me last week, the company quickly homed in on the legal market after it launched a far more basic product seven years ago. It took the team a while to gain a foothold in the rather conservative legal industry, but once it managed to convince a couple of legal departments to trust its cloud-based approach, the company quickly gained new customers and became cash-flow positive. It did so by disrupting what Enand likes to call the “eDiscovery industrial complex.”

The standard concept behind eDiscovery had long been that businesses should just gather as much data as possible — which in turn means you are paying your lawyers for all of the time it takes to sift through that data. Zapproved, on the other hand, believes that businesses should take a smarter approach that uses its algorithms to collect the data and then shrink it down to as little as possible for the eyes-on review later in the process. Working through 500 gigabytes of data could easily cost a company almost $200,000 in legal fees, so a smart collection process can quickly save a company quite a bit of money.

Zapproved_DDP_Screenshot 2

Equivio, an eDisovery service Microsoft acquired last month, can also be used to search through multiple terabytes of data to find those nuggets of information you need, for example. But as Enand told me, Zapproved believes that you shouldn’t have to do that. “There’s an ‘e-discovery industrial complex’ that feeds off of this with a ‘collect everything’ mindset — and charges exorbitant rates to do so,” she said in today’s announcement. “Corporations can’t continue down this path and we need a new approach to achieve the goals of Rule 1: a ‘just, speedy and inexpensive’ resolution to civil litigation.”

The company already put this funding to good use by quietly acquiring eCloud Collect, a remote data-collection service that complements its Legal Hold Pro flagship product by making it easier for legal departments to collect data from employees’ computers, as well as company servers and cloud storage accounts. The eCloud Collect technology now forms the basis of its new Data Collect Pro service, which it is officially launching today, together with its new Digital Discovery pro data processing service. Thanks to the combination of these three tools, Zapproved now offers a comprehensive eDiscovery solution for large businesses.

Bright couldn’t disclose any of Zapproved’s customers (this is the legal industry, after all) but did note that they include a wide range of very large enterprises ranging from airlines to large auto and consumer goods manufacturers.

Enand and Bright told me that Zapproved could’ve continued to grow without taking outside funding — the company now has about 50 employees — but in order to push its service forward and quickly launch the kind of new products its customers were looking for (and scale the company to support this), Zapproved decided to raise this new round.

Enand also noted that the company got a lot of inbound interest once it established itself in the legal world, but the company decided to go with K1 because the firm focuses solely on mid-sized software companies and takes a very hands-on approach with its portfolio companies. In Enand’s view, all early-stage companies have very individual needs, but once they grow, they all face very similar challenges — and that’s where K1’s management experience comes in.

More TechCrunch

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

2 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

2 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.

Microsoft will launch its custom Cobalt 100 chips to customers as a public preview at its Build conference next week, TechCrunch has learned. In an analyst briefing ahead of Build,…

Microsoft’s custom Cobalt chips will come to Azure next week

What a wild week for transportation news! It was a smorgasbord of news that seemed to touch every sector and theme in transportation.

Tesla keeps cutting jobs and the feds probe Waymo