Copenhagen-based legaltech startup SmallClaims has raised €2 million in a seed round led by Finnish venture capital firm Vendep Capital to scale its AI-powered litigation platform across Europe. The company uses specialised AI agents to automate the small-claims process, from legal assessment and settlement negotiations to court filings, judgments and enforcement, helping businesses recover unpaid invoices and other claims that might otherwise be too costly to pursue. The funding will support further development of its AI platform, expansion into additional European markets and team growth in Copenhagen.
Founded in 2021, SmallClaims develops an AI-native platform that uses specialised AI agents to automate small-claims litigation, from legal assessment and settlement negotiations to court filings, judgments and enforcement. The company aims to make it economically viable for businesses to pursue smaller claims, including unpaid invoices that might otherwise be written off because the cost of legal proceedings outweighs the amount owed.
SmallClaims is addressing a challenge faced by businesses across Europe: recovering unpaid debts can require significant time and legal resources, particularly when the amounts involved are relatively small. According to the company, more than €930 billion in claims are written off annually across the EU because they are too costly to recover through the courts.
“The court system was built for an era in which a lawyer sat with every single case. That makes sense for a €1 million dispute, but not for a €2,000 invoice. The consequence is that European businesses give up hundreds of billions of euros they are legally owed every year. We have built a machine that can run those cases at a fraction of the cost – and with this round we will prove that it works country after country, not just in Denmark,” says Christian Olson, Founder & CEO, SmallClaims.
Traditional small-claims proceedings can require more than 15 hours of legal work and take over a year to resolve. SmallClaims says its AI-powered platform has reduced manual case-handling time to approximately 1.5 hours per case. Its legal team currently quality-checks the AI agents’ work and represents clients in court when cases cannot be resolved before a hearing. The company reports a win rate exceeding 90%.
SmallClaims serves more than 500 customers, including debt collection agencies, law firms and businesses handling large volumes of outstanding invoices. Its platform also supports specialised claims, such as copyright infringement. The company processed more than 3,200 cases in 2025, while case intake grew by more than 370% between 2023 and 2025.
The new investment will help SmallClaims strengthen its AI platform and expand its operations beyond Denmark. The company is targeting markets where digital court systems and cross-border procedures could support greater automation of legal proceedings.
The European Small Claims Procedure provides a framework for resolving eligible cross-border claims of up to €5,000 across participating EU member states. Meanwhile, the EU’s broader digitalisation initiatives are advancing the use of electronic filing, digital service of documents and video hearings, creating opportunities for technology providers seeking to streamline legal processes.
SmallClaims expects to triple its revenue in 2026 and has set a target of exceeding €100 million in annual revenue over the coming years.
The company’s business model is primarily based on a no-win, no-fee approach, with fees generally covered by the debtor through statutory legal costs, supplemented by subscriptions and integrations with financial and invoicing systems.
The €2 million seed round was led by Vendep Capital, a Finnish venture capital firm focused on early-stage B2B software companies across the Nordic and Baltic regions.
Jupe Arala, partner at Vendep Capital, cited the combination of founder Christian Olson’s legal experience and the company’s AI-native approach as key factors behind the investment. Olson previously served as general counsel at Too Good To Go and worked as an attorney at Løje IP.
With the new funding, SmallClaims plans to build on its existing customer base and expand its automated litigation services into more European markets.
Read the orginal article: https://arcticstartup.com/smallclaims-raises-e2-m-seed/
