How a Case is Valued

Determining the value of a lawsuit is an essential step before funding is approved. Experts carefully assess each case, looking at key factors such as how long the case will take, the chances of winning, the potential payout, and any risks involved

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Before funding is approved, experts assess key factors like case duration, success probability, potential payout, and risks

How a Case is Valued

    Time Matters – Shorter cases are more valuable. Funding can happen at any stage, but quicker resolutions provide faster returns
    Probability of Winning – Legal experts review evidence, witness reliability, and documentation. Only cases with a 20-80% success chance are considered
    Potential Payout & Profitability – Higher damages make a case more attractive, as less of the payout is needed to cover funding
    Understanding the Risks – A win doesn’t guarantee payment. Experts assess the defendant’s ability to pay to minimize investor losses.

How Investors Get Paid

    Payouts from Case Settlements – When a lawsuit settles or wins in court, funds are distributed after legal costs, and investors receive a lump sum payout
    Earning Interest on Investment – Some investments accrue interest, which is paid only if the case wins. In some cases, assets like patents secure the investment
    Early Buyout Triggers – Certain investments offer early payouts if key milestones are met, often guaranteeing returns of at least 30%
    Corporate Buyouts as a Settlement Strategy – If a small company sues a larger one, the bigger firm may buy them out, allowing investors to profit from the acquisition

Understanding the Investment Life Cycle

    Earning Interest Over Time – Investors may earn interest while their money is held in a Special Purpose Vehicle (SPV), with payouts weekly, monthly, or quarterly
    Getting Paid When Cases Settle – Payouts occur when cases win or settle, but the timing varies. Some months may see multiple settlements, while others have longer gaps
    Getting the Original Investment Back – After a successful case, investors start receiving portions of their initial capital along with their profits.
    High-Return Buyout Option – If an investment meets performance goals, investors may receive an early buyout, often earning 30%+ returns

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