This podcast episode features a conversation with Eva Chang, co-founder of Legalist, an alternative credit fund specializing in litigation financing. The episode discusses how Legalist started with data scraping from judicial websites and evolved into a billion-dollar alt credit fund. It explores their business model of financing litigation cases for plaintiffs who lack capital and face deep-pocketed defendants. The episode also highlights Legalist's involvement with Y Combinator and their shift towards litigation finance based on advice from the general counsel. The conversation covers the reasons why businesses seek outside funding for litigation, the experiences of Legalist co-founders, the benefits of litigation funding in settling cases, and Legalist's unique funding strategies. It also touches on government receivables financing, the origination approach used by Legalist, the misconceptions surrounding litigation, and the speaker's insights into alt credit and finance. The episode concludes with book recommendations and advice for college students interested in alt credit or finance careers.
