June 14, 2018
Validity funds commercial cases of any type, in any industry, in any jurisdiction, at any stage of litigation—so long as they have strong legal merits. We fund business-to-business commercial litigation in any subject area, such as breach-of-contract, antitrust, trade secrets, and intellectual property. We fund cases on behalf of any type of business and in any industry, although we do not fund cases on behalf of individuals or consumers. We look at cases in any jurisdiction, whether federal or state court, international arbitration, or foreign court. And we fund cases at any stage of litigation, from pre-dispute to appeal to post-judgment. The most important aspect always is whether the case is legally meritorious. We won’t bet on long shots, strike suits, or matters of principle or personal vendettas.
For single cases, we look at investment sizes of approximately $2 million to $4 million. For portfolios or pools of cases, we look at investment sizes of up to $10 million. The realistic settlement value of the case should be approximately 10 times our investment. That ratio helps ensure that the client receives the lion’s share of any proceeds. The client’s law firm should be willing to share the attorneys’ fees budget with us 50-50, so they have skin in the game.
On the merits, a good case has facts that demonstrate reprehensible conduct on the part of the defendant and tells a compelling story to the judge or jury. Ideally, the case turns on documentary proof rather than on witness credibility, and it doesn’t depend on a “battle of the experts” or an unsettled question of law. If the case involves a patent, we look to see if the inventor is available to tell her story and whether the patent has a prior history of success. If the case involves a foreign court, we look to see whether the documents and proceedings are conducted in English. Last but not least, we look to see whether the client is willing to settle the case for a reasonable amount and whether the law firm is qualified and passionate about the case.
In sum, we invest in a wide range of cases. The unifying thread is that they are all strong on the merits. Our overarching goal is to help clients win based on their legal rights, not on whether they have enough money to afford the justice system.