$10B Growing Market

According to SnapShot Labs, from May 2021 to June 2022, the number of DAOs increased 8.8 times — from 700 to 6,000. The Superdao project, which received $10.5 million in funding in January 2022, estimates that over the next few years the number of DAOs in the world may grow to 1 million. We believe that such an assessment is quite realistic.

The market of corporate legal services related to the registration of companies and their maintenance is huge and amounts to hundreds of billions of US dollars per year. Researchandmarkets.com estimates the global legal services market was $0.7 trillion in 2021, will be growing at a 7% CAGR, and forecasts it will be $1.0 trillion in 2026 and $1.3 trillion in 2031. IbisWorld estimates the U.S. corporate legal services market at $162 billion in 2022 and expects it to grow further with the end of the COVID pandemic, and estimates the number of businesses in the U.S. with one or more employees at 8 million in 2022.

The U.S. Bureau of Labor Statistics states that in March 2020, there were 10.75 million registered businesses in the United States. It turns out that the average cost of corporate legal services is in the $15,000-$20,000 range per year per company. Such services include the individualization of statutory documents, registration of new companies, registration of changes in statutory documents, execution of decisions of collegial bodies, notaries/apostille, storage of documents, etc.

Based on the assessment above, of the average cost of companies for legal services, and taking into account some savings due to the use of new technology, the cost of services for the creation and support of a DAO can average $10K per year. That is, with 1 mln DAOs, we are talking about a rapidly growing global market of $ 10 billion (about 1% of the global legal services market).