Legaltech firm VXT raises $2.5m at $45m value with Silicon Valley backing
Summary
But it wasnt enough to make ends meet and it soon ran up against the visual voicemail introduced by phone makers and carriers that did the same thing.We were quickly running out of money and it was, it was getting more and more difficult to grow the business, Campbell said.His solution was to go and talk to the paying customer. The United States is the firms second-largest and fastest-growing market, having experienced 400% growth in the past year, Campbell says.Our customers make more than half a million calls in VXT every month. He says his plan is to spend five months of the year in New Zealand, five months in Australia and two months further afield.Last year he did 43 flights, but he says the object wasnt sales, but simply talking to customers and watching them work.His approach reminds the Herald of Education Perfect founder Craig Smith, the University of Otago graduate who obsessively tweaked his software after closely observing users (and who would later see his firm sold to US private equity giant KKR in a $455m deal).After watching a customer in real life, I might, like, move a button two pixels to the right or make it larger. All of those small optimisations are just as important as the foundational changes because when you add 1000 of them together VXT becomes incredibly easy to use and valuable.VXT has also been backed by local VCs Global From Day One (GD1) and Phase One Ventures.The March capital raise is a pre-Series A. Campbell says theres now lots of runway, with no pressing need for a Series A. VXT could be profitable at any time if it chose but prefers to push for growth, he says.From its early days, it knows how to run lean, he says.Head of marketing Sophie Svenson recently recalled on LinkedIn how, after joining as a commission-only contractor, in my first two months at VXT, I was only paid $130.A bit more is coming through the door now.VXTs monthly recurring revenue is currently at a $3m annualised run rate and growing 10% per month, Campbell says.There are 20 staff today, which will grow to 26 in a couple of months, he says. The aim is to become a broader part of every law firms tech stack.At our current growth rate, we expect to approach $100m in annual recurring revenue within three years or so, Campbell adds.Even since the March raise, a transaction between shareholders upped the value of the firm again, this time to $57m.Chris Keall is an Auckland-based member of the Heralds business team.