DMITRY SHUBOV: REGULATORY CLARITY BOOSTS US FUNDING FOR SOUTHEAST ASIAN LEGAL-TECH STARTUPS

KUALA LUMPUR, Feb 6 (Bernama) -- Investors are increasingly basing early-stage funding decisions for Southeast Asia’s United States (US)-focused legal-technology startups on regulatory readiness and market traction, according to consulting firm Dmitry Shubov Consulting.


In a statement, the firm said startups that treat legal and compliance as part of their go-to-market strategy tend to experience shorter due-diligence cycles and achieve better fundraising outcomes than those that treat compliance as an afterthought.


The firm cited an October 2025 report by Crunchbase News, which found that US investors are beginning to factor legal strategy and regulatory preparedness into their investment decisions in the legal-technology (legal-tech) and regulatory-technology (reg-tech) sectors.


“Regulatory preparedness is not just a compliance piece; it is a key part of the product-market story that investors buy into. Southeast Asian founders who prioritise compliance and legal strategy can increase their investor appeal and shorten fundraising timelines,” said Dmitry Shubov Consulting founder, Dmitry Shubov.


Investors are prioritising clearly defined regulatory pathways, licensing plans and market-entry playbooks, as well as data-transfer agreements, privacy and security frameworks, and risk-mitigation plans to reduce due-diligence friction.


They are also assessing repeatable and low-churn customer adoption, strong unit economics, credible go-to-market strategies such as US pilot programmes or channel partnerships, and regulatory clarity, which contribute to investment size and valuation.


In addition, documented compliance processes were cited as making startups more attractive to potential acquirers, including law firms, regulatory-technology platforms and larger software-as-a-service providers.


The firm said consulting support for early-stage legal-technology startups typically includes mapping regulatory pathways, preparing customer data flow and due-diligence documentation, translating pilot projects into investor metrics, establishing US corporate structures and documentation, and developing investor outreach and go-to-market strategies targeting cross-border and reg-tech investors.


For Southeast Asian legal-tech founders, regulatory compliance clarity is increasingly seen as a key factor by investors. Consulting firms with expertise in US market entry, such as Dmitry Shubov Consulting, can provide guidance on navigating regulatory requirements and preparing for investor due diligence.

-- BERNAMA