Legal Hero

The company's core business revolves around assisting terminated employees in securing severance pay from their former employers. It operates on a "no win, no fee" basis, eliminating the financial risk for its clients. The business model is commission-based; when a severance payment is successfully negotiated, Legal Hero retains a percentage of the amount. Initially, this was a 25% commission upon successful conclusion of the legal dispute. The company later introduced an expedited service, offering an immediate payout of 65% of the anticipated severance within 24 hours, in exchange for a higher commission of 35%, regardless of the final outcome of the case. To finance these immediate payouts, the company secured an eleven-million-euro financing facility from a Swiss private equity fund just a few months after its launch in 2017.

The service functions by having users submit details of their termination through the abfindungsheld.de platform. The platform then facilitates the connection to a partner lawyer who takes on the case, handling the legal proceedings to secure the severance package. This model is designed to automate and streamline the initial stages of the legal process, making it more efficient than traditional channels. While initially focused on individual employees facing termination, Legal Hero has expanded its scope to also offer digital case processing and management solutions for insurance companies, aiming to increase customer satisfaction and improve control rates for its B2B partners. The company collaborates with major insurance providers in Germany and actively recruits partner lawyers in various fields, including employment, tenancy, criminal, and traffic law.