WeWork's former top lawyer wants to do with fund docs what TurboTax did for tax prep. Big Law should be nervous.

A former top lawyer from WeWork is now spearheading a transformative legal tech initiative aimed at reshaping the way private market investors access legal advice. Jen Berrent, who previously navigated the complexities of corporate law at WeWork, has co-founded Covenant, a law firm that leverages artificial intelligence to streamline legal processes. Covenant, which has raised $4 million in venture funding, focuses on using advanced language models to analyze extensive legal documents. This innovative approach is designed to identify potential issues and propose improved terms, tailored specifically to the needs of investors. The firm targets institutional clients directly, bypassing traditional law firms, and aims to challenge the conventional wisdom that larger firms inherently provide superior insights. In the realm of venture capital and private funds, investors often rely on prestigious law firms to guide their financial decisions. However, Covenant's model seeks to question whether the hefty fees associated with Big Law are truly justified. Just as TurboTax revolutionized tax preparation by making it accessible to the average American, Covenant aims to empower private investors to critically assess their legal expenditures. Berrent, who served as WeWork's chief legal officer during a tumultuous period, initially intended to create tools for startup founders to negotiate contracts. However, she and her co-founder Richard Perris identified a more significant challenge in the intricate legal documentation associated with private funds—specifically in limited partner agreements (LPAs) and side letters, which often require extensive legal expertise. Since its inception, Covenant has garnered approximately 45 clients, including endowments and pension plans, with a reported 50% increase in monthly transaction volume since January. The firm represents a new wave of legal services firms that integrate technology as a core component, a trend that venture capitalists are keen to support. Experts in the legal field anticipate a shift toward 'bionic boutiques'—smaller, tech-enabled practices that can yield higher revenue per lawyer. This evolution could lead to an influx of lawyers departing from large firms to establish their own innovative practices. Covenant's vision extends beyond mere legal tech solutions for firms; it aims to redefine the legal services landscape, much like how Uber transformed transportation. By selling legal services directly to investors who traditionally engaged Big Law, Covenant is poised to instigate a significant cultural shift in how legal advice is perceived and utilized. As the legal tech sector continues to evolve, Covenant and other similar companies are at the forefront of a potential revolution, promising to alleviate the tedious aspects of legal work while offering clients a fresh perspective on their legal needs.