A new legal-funding site launched this month with the goal of connecting plaintiffs in civil litigation with investors who compete to advance them a small portion of any future settlement or award.

mightyCalled Mighty, the company formally announced the launch of its online funding marketplace on Sept. 16, after having recently raised $5.25 million in Series A funds.

The purpose is to help plaintiffs bridge the gap between the time they file a lawsuit and they time they reach a resolution by providing funding to help them meet medical and living expenses. Once a plaintiff applies for financing, investors submit competing offers and the plaintiff chooses the one that seems best. (The plaintiffs’ attorney must also sign off on the loan.)

All financing through Mighty is structured as a non-recourse investment, meaning that if a case fails to recover, the plaintiff owes investors nothing. From the website:

Because our funding takes the form of a non-recourse investment, you will never owe a dollar to investors if your case loses. Our investors understand that they are investing in your case. They only win if you win.

The company’s standard contract is posted on its site.

Plaintiffs must already be represented by an attorney before applying for financing on Mighty. Investments start at $500 and the average financing is $5,000, the company says. The money can be used only for living and medical expenses.

The company seeks to recruit individuals who are accredited investors with legal expertise to serve as investors. Investors can invest in multiple cases and build a portfolio. The site promises investors “high-yield” returns “free from stock market volatility.”

When a case is successfully concluded, Mighty charges the investor a fee that is variable based on the amount of the investment.

For lawyers and law firms, Might offers to work closely with them to simplify the process of obtaining plaintiff financing. It says that it provides firms with a dedicated point person to work with them and that it keeps both the firm and plaintiffs informed through an online dashboard and text-message updates.

Photo of Bob Ambrogi Bob Ambrogi

Bob is a lawyer, veteran legal journalist, and award-winning blogger and podcaster. In 2011, he was named to the inaugural Fastcase 50, honoring “the law’s smartest, most courageous innovators, techies, visionaries and leaders.” Earlier in his career, he was editor-in-chief of several legal publications, including The National Law Journal, and editorial director of ALM’s Litigation Services Division.