The million that never came: the unusual founder story behind Law.me

When Katrin Stopp von Falkenstein filed for personal bankruptcy in early 2023, starting a new company would not be high on most people’s priority list. For the lawyer, however, it marks the beginning of something new. A few months later, she begins building Law.me, a legal tech app designed to support people with legal questions while also promoting out-of-court conflict resolution.

In the Munich Startup video cast Pitch & People, the founder speaks openly about financial setbacks, broken investor promises, and the creation of a startup built without funding or external capital.

Making law accessible to everyone

With Law.me, Stopp von Falkenstein pursues one goal:

“The app is meant to democratize law.”

The application is aimed at people who face legal questions, whether in landlord and tenant law, employment law, family law, inheritance law, or corporate law. The platform now even covers topics such as NDAs or traffic law questions.

In the first step, users receive an AI-supported initial legal assessment. Additionally, the app evaluates the chances of reaching an out-of-court settlement or mediation.

“We want to bring society closer to the topic of mediation. From my experience, many conflicts can be resolved before lawyers or courts become involved. That’s exactly where I want to start with Law.me.”

From mediation consultant to startup founder

The idea didn’t come overnight. Already after completing her law degree, Stopp von Falkenstein intensively focused on out-of-court conflict resolution and founded a consultancy for out-of-court settlements.

When she observes the first developments in artificial intelligence in 2022, she sees an opportunity to scale her previous work. In April 2023, development of Law.me begins.

Founding without capital

Unlike many founders, Stopp von Falkenstein starts without investors, without funding programs, and without her own capital. Rather than being held back by a lack of financial resources, she immediately begins working on a pitch deck and building her network in the Munich startup scene.

She particularly highlights the local ecosystem in positive terms:

“I believe we have one of the best startup scenes.”

The actual development of the platform becomes possible because she can convince developers of her idea. They come on board in exchange for equity stakes and help turn the vision into a market-ready product.

The path to personal bankruptcy

Parallel to the creation of Law.me, the founder struggles with a personal crisis.

Back in 2018, she purchases two multi-family residential buildings. The calculation appears solid at the time, and the financing bank is even convinced of the venture. However, the framework conditions change.

Rising gas prices and higher ancillary costs mean that Stopp von Falkenstein can no longer operate the properties profitably as planned. At the same time, her responsibility to the tenants grows.

For her, responsibility to the residents was paramount. Through bankruptcy, it was to be ensured that the tenants’ supply of services would continue to be guaranteed.

“I felt responsible for filing for bankruptcy quickly so that the supply situation would be restored. And then I founded the company coming out of personal bankruptcy.”

The investor who never paid

Adding to the financial challenges, another problem comes along shortly after.

An investor joins Law.me. A one-million-euro investment is planned. Contracts are signed, and the founder begins preparing further steps for company growth. But the money is never transferred. Weeks turn into months, and the payout is repeatedly delayed.

She waits five months for the promised funding. Finally, she draws the necessary conclusion and ends the collaboration.

“I let him go in March and said: it makes no sense.”

Why bootstrapping can be more than financing

Despite the failed financing, the founder doesn’t give up. On the contrary: the experience reinforces her conviction that bootstrapping can also have advantages. Those who start without a large funding round must calculate more carefully, make better decisions, and search more creatively for solutions.

She cites her own daily life as an example. She has consistently reduced her personal expenses and questions every investment multiple times. For her, this is not a disadvantage but part of an entrepreneurial mindset.

Trust as a success factor

A particular challenge for legal tech providers is building trust. After all, users often make far-reaching decisions based on the information provided. Stopp von Falkenstein therefore deliberately focuses on transparency and personal visibility.

Under the name “Law Mediator”, she documents her founder’s everyday life on social media, discussing successes, mistakes, and challenges. Stopp von Falkenstein sees her personal brand as an important building block for the platform’s success.

Currently, Law.me is in talks with major legal protection insurance companies. The idea: many legal questions could be prepared or even resolved through digital initial analyses before costly consultations or court proceedings become necessary. This would benefit both insurers and the insured.

The Tinder of law

For the coming years, the founder has a clear goal. People should automatically think of Law.me when they have legal questions.

“I want to become the Tinder equivalent: when people search for love, they think of Tinder. When they search for their rights, they should think of Law.me.”