In a strategic move reflecting the growing importance of technology in the legal sector, Nicola Foulston, former chief executive of RBG Holdings, has acquired a majority stake in a pioneering platform that utilises artificial intelligence to aid law firms in pricing their services.
Nicola Foulston, through her company Velocity Venture Capital, has made a significant investment in Virtual Pricing Director (VPD). The undisclosed investment, intended to be adaptable over time, establishes her company as the majority shareholder. The move comes in response to a robust demand for the platform, particularly from large law firms.
Foulston, who is expected to assume the role of chairman at VPD by the end of the year, is already actively advising the company on scaling its operations and navigating industry challenges. Her involvement marks a significant shift from her previous roles, including her tenure as chief executive at Rosenblatt, which ended in a financial settlement after her dismissal in early 2023.
The former law firm executive identified early on the inadequacies in traditional legal pricing methods, critiquing the arbitrary approach often taken by partners. She highlighted the pressure on profit margins within the sector, exacerbated by clients’ push towards fixed fees and increasing operational costs, such as salary increments and insurance premiums.
VPD offers a technological solution to these challenges, offering detailed pricing oversight that extends beyond what typical case management systems provide. Foulston emphasised the platform’s capacity to enhance visibility and control for law firms, predicting wide industry adoption within the next decade.
The demand for VPD’s services is particularly strong among major law firms, those with annual revenues exceeding £100 million. These firms, recognising the strategic advantage of specialised pricing teams, are increasingly seeking the platform’s assistance. Moreover, VPD’s potential is not limited to the legal industry alone; accountancy firms are also exploring its capabilities.
Foulston anticipates an expansion of VPD’s team to accommodate its growing client base, signalling a need to double its current workforce within a year. Despite the expansion, the company is not searching for further external investment, indicating confidence in its current financial trajectory.
Richard Burcher, the original creator of VPD, expressed enthusiasm over Foulston’s involvement, citing her extensive experience and sector insights as invaluable resources for the company’s planned growth.
Foulston’s investment in VPD underscores a transformative shift within the professional services sector, driven by technological innovations that promise to redefine traditional business models.
