VoiceScript is leading the modernization of the $3.5B US court reporting market by combining its own proprietary state-of-the-art speech and crowdsource technologies with highly specialized and efficient gig-worker production methodologies.
We began generating revenue in Q3 2020, and expect to generate +$150,000 in Q1 2021 through 6 recurring clients.
VoiceScript and its subsidiary LegalDepo Solutions addresses the market through four distinct sets of customers. These include: 1.) large and mid-size court reporting agencies as channel to market partners, 2.) large and mid-size law firms and alternative legal services providers, 3.) large enterprise organizations that have their own legal operations and litigation teams, and 4.) federal and state court systems who outsource legal transcript production.
VoiceScript (Channel Sales) is positioned as a turnkey wholesale supplier of digital court reporter and low-cost transcript solutions to regional and national court reporting agencies. We currently have engagements with 2 national court reporting agencies, including Esquire the 3rd largest agency in the US and Trustpoint.One which is in the top 20 in the US. VoiceScript also has active engagements with several regional court reporting agencies, including Remote Legal in PA/NY/NJ, Ken Owen & Associates in TX, Rosenburg & Associates in NY/NJ & New England, with others in the pipeline. We will continue to grow our channel partnerships with over 1,500 potential court reporting agency channel partners representing the large to medium size court reporting agencies in the US. Our own market research and agency engagements suggest that the vast majority (+90%) of these agencies will have a need to partner with a provider of qualified digital reporters and low-cost transcript production in order to effectively deliver digital reporting services to their clients.
LegalDepo Solutions (Direct to Client Sales) is a wholly owned subsidiary of VoiceScript which was launched in December 2020. LegalDepo is positioned as a leading supplier of cost-efficient digital court reporting services sold directly to law firms, corporate inhouse legal operations, and to federal and state courts throughout the US. We currently offer our product and services at roughly 50% below current market pricing. LegalDepo began providing direct to client services to Florida based law firms in December 2020 and officially launched a sales and marketing campaign to law firms in 5 states, including TX, CA, FL, NY, and NJ. Legal Depo will expand its offer to law firms in 20 states by the end of 2021. In addition, LegalDepo will begin marketing its direct to client products to insurance and large corporate companies as well aggressively bid on federal and state court public bids once a LegalDepo sales team has been established.
Problem or Opportunity
Law firms, insurance companies and corporate legal operations typically source court reporting services from traditional court reporting agencies. These reporting agencies outsource and subcontract independent stenographers (aka: stenographic court reporters) to provide the remote or in-person reporting services as well as produce the certified legal transcripts. Stenographic reporters use +100-year-old methodologies to produce transcripts of court hearings, trials, depositions, and other legal proceedings. The certified transcript production methodology starts with the stenographer creating a rough draft with a manual steno machine, then the draft is transcribed, edited & proofed by the stenographer themselves or by independent subcontractors. The standard production time for this traditional production methodology is usually +2 to 6 weeks.
There is an acute and growing shortage of qualified stenographers, which causes delays in litigation and lost revenue for agencies and legal services providers, while also driving up the costs of litigation for all parties involved. The average age of a stenographer in the US is 59 years old with many thousands retiring or leaving the industry annually and very few new stenographers entering the market each year. As a result of the stenographer shortage and the entire court reporting market’s dependency on stenographers, court reporting and legal transcripts have become a "seller's market". Agencies pay increasing transcript rates to stenographers, with stenographers commanding between $3.00 and $4.00 per page for original transcripts and $1.00 to $2.00 per page for certified copies. Certified transcripts are then sold to law firms (to be paid ultimately by their clients) for $5.00 to $8.00+ per page / $2.00 to $3.00 per page for copies. This traditional cottage industry production model is costly and hugely inefficient and to date has not benefited from any meaningful technological or production efficiency advances. Agencies, courts, and other legal transcripts, consumers are eagerly searching for technology-driven solutions that can help reduce the overall cost of litigation, with most federal and many state and municipal court systems having completely moved away from stenographic reporting and transitioned to digital recording systems instead.
Solution (product or service)
VoiceScript's value proposition is simple; we offer legal transcripts at disruptive prices and turnaround times compared to traditional stenographic production methods. Our clients receive the same high-quality legal transcript products at 30% to 50% below current market prices- with delivery times two to three times faster than current industry standards. VoiceScript's AI technology-based production platform allows VoiceScript to achieve the industry's highest blended product margins (~60%gross margin for transcript products) and (+80% gross margin for future real-time/live streaming products). In addition to providing industry-leading prices today, VoiceScript is developing Real-Time SaaS solutions for digital reporters and court reporting agencies. The VoiceScript real-time digital reporter products will allow digital reporters to directly complete with stenographer-based services with similar products while generating over 80% product margins for VoiceScript.
Current competitors are primarily the old guard stenographers & legal transcriber subcontractors who have established subcontractor relationships with court reporting agencies & direct to law firms. The challenge for traditional stenographic based court reporters is that emerging AI technology-based suppliers, including VoiceScript, are able to deliver comparable products at much lower costs and much faster turnaround times. There is an emerging arms race with numerous companies attempting to integrate speech technologies with human transcription for the legal market, with no credible vendor having "cracked the code" on this yet. The most visible competitor is Verbit, an Israeli company that has raised $125M and is only now building its own speech technologies. In a recent side by side comparison, VoiceScript’s own speech technologies out-performed Verbit relative to overall automated speech to text accuracy. Other technology companies including Stenograph, Inc. and several lesser-known technology companies are also trying to build similar digital court reporting-based solutions. VoiceScript has a very strong and unique opportunity to be the first to market with several new to digital court reporting products, with the core advantage of having a complete end to end delivery platform (from scheduling a digital reporters to delivering a low cost certified transcript).
Advantages or differentiators
VoiceScript's advantages include: 1. Industry-leading AI speech technology & IP – including speech recognition, voice biometrics, voice detection, and more. 2. Crowdsourced transcript production & workflow management platform technologies. 3. Founding team with proven experience and technology leadership in AI, speech & crowdsource technologies and the legal market. 4. Extensive experience in growing and managing large scale Gig-Economy workers and legal transcription operations. 5. First to market advantage with game-changing software & UI tools for digital reporters that result in the lowest court reporter & transcript products in the industry.
same as above in "Customer Segments and Market" response
Money will be spent on
Funding will be use to hire retain key employees, build out an initial sales team further progress VoiceScript speech and court reporting technology solutions for planned launch in Q2 2021.
Offer for investor
We are raising a minim of $1.5 Million on a pre-money valuation of $5.5 Million. This valuation was determined through due diligence with the Keiretsu Forum.
We also have a short term bridge round for between $200k and $300k that will close in February and will roll directly into the Keiretsu Forum round.
The biggest risk is VoiceScript not receiving funding earlier enough to help develop and launch several industry first products to the market. Without funding the company will be limited in its growth and scaling opportunities, and risk seeing other competitors enter the market with early market advantage which VoiceScript currently has the opportunity to lead.