Nicola Foulston, former CEO of RBG Holdings, takes a major stake in Virtual Pricing Director (VPD).
- Foulston’s investment aims to help VPD scale in response to strong demand from large law firms.
- VPD leverages AI technology to provide detailed and dynamic pricing solutions for legal services.
- Amidst industry pressures, VPD addresses the need for improved profitability and pricing accuracy.
- Foulston will assume the role of chairman, bringing her expertise to VPD’s strategic growth.
Nicola Foulston, who previously led RBG Holdings, has acquired a majority stake in Virtual Pricing Director (VPD), a platform utilising artificial intelligence to optimise legal service pricing. This strategic investment by Velocity Venture Capital, a firm within Foulston’s family office, aims to meet the growing demand for precise and adaptable pricing solutions, particularly from larger law firms.
The investment’s specifics remain undisclosed and are designed to be flexible, allowing for adjustments over time. Foulston has already begun advising VPD on scaling its operations to cater to this increased interest. Her impending appointment as chairman is expected before the year’s end.
Foulston’s involvement in the legal sector began eight years ago when she recognised the inadequacies in traditional pricing models while working with Rosenblatt. She described past pricing strategies as imprecise, noting the difficulty they posed in achieving favourable profit margins.
Richard Burcher, founder of VPD, significantly improved the platform since its inception. Foulston was impressed by these developments, particularly the software’s ability to offer granular, job-specific pricing insights in real-time, a feature that traditional case management systems lack.
The legal industry is experiencing significant profit margin pressures. Factors such as client-driven demands for fixed fees, rising salaries, and increasing indemnity insurance costs have compressed margins, with some firms reporting as low as 5-10%. VPD aims to alleviate these stresses by providing control and transparency.
The software is gaining traction among firms with turnovers over £100 million and is also being adopted by accountancy firms, hinting at its broader applicability across professional services. The current team of six at VPD is expected to expand by at least four members next year to handle the rising demand.
Richard Burcher commented that Foulston’s decision to invest aligns with VPD’s vision for expansion, highlighting her extensive industry knowledge as a crucial factor in their growth strategy.
Nicola Foulston’s investment in VPD positions the company to address industry challenges through innovative AI-driven pricing solutions.
