Founding a company is both exhilarating and challenging, requiring vision, persistence, and a willingness to take risks. Entrepreneurs must navigate an unpredictable landscape, balancing innovation with practicality while building a team and creating solutions that stand out in a competitive market. It’s a journey filled with highs and lows, but for those with the drive and passion to succeed, it can be one of the most rewarding experiences.
A less rewarding experience: obtaining legal representation.
Thanks to technology, remote work, and new funding models, business formation has evolved rapidly; the traditional legal industry model has not kept pace.
Non-venture-backed start-ups and small businesses, particularly, are priced out of quality legal services. Forced to accept sky-high costs simply because that’s how it’s always been, entrepreneurs sacrifice innovation by chasing down lawyers or attempting to handle complex contracts themselves. As a result, they put their businesses and livelihoods at risk, fail to scale, and run out of funds too soon.
The legal industry is ripe for change—especially for early-stage entrepreneurs who need fast, affordable, reliable, and accurate legal services.
In this interview with Paralex founder Stephen Candelmo, he shares the company’s origin story, the inspiration that sparked his vision, and how Paralex is transforming the legal industry for startups and small businesses.
The Paralex Origin Story
Stephen’s inspiration for Paralex came during an unexpected moment while working out at his local gym. Initially, he had built Paralex as a self-service informational tool, but he quickly realized its limitations—accuracy, legal ethics, and the overall business model weren’t sustainable. That’s when Stephen had his “A-Ha!” moment with a simple question:
What would it need to look like if I could scale myself to reach more clients?
He began to imagine AI handling client-side tasks like intake and drafting while a network of lawyers ensured accuracy and provided trustworthy advice. This model would reduce the time lawyers spent on contract matters, making legal services more affordable and predictable.
“I was so excited by the idea that I rushed into a workout room that had a whiteboard and sketched out the entire process and structure right there,” Stephen recalls. “I still have a picture of it and plan to frame it someday.”
Stephen’s nearly 30-year career as a corporate lawyer—representing startups and investors on transactions worth over $3 billion—uniquely positioned him to recognize this opportunity. Before founding Paralex, he had already founded a machine learning and AI startup that helped companies analyze customer feedback using text analytics. This experience reinforced his belief in AI’s potential, but his passion for business law kept pulling him back to a major issue: legal services were too costly and inaccessible for many startups and small businesses.
“I knew there was a real opportunity to make quality legal services more accessible and affordable for startups and small businesses,” Stephen says. “Startups are the foundation of innovation, and the traditional legal industry has underserved the vast majority of them. It was clear to me that something needed to change.”
Thus, Paralex was born—bridging the gap between AI and business law to deliver faster, more affordable, and accessible legal services for startups and small businesses.
The name “Paralex” draws from the term “paralegal,” referring to professionals who assist lawyers but are not attorneys themselves, and “lex,” the Latin word for law. “Paralex represents the idea of assisting clients with legal tasks, but with a modern, tech-driven twist,” explains Stephen. “We’re here to help clients draft documents, collect information, and communicate seamlessly with attorneys. It felt like a perfect fit for what we were building.”
The Problem with Traditional Legal Services for Startups
Legal services are expensive, unpredictable, and slow—especially for startups and small businesses.
“Attorney services are essential, but too often, they’re inaccessible to the very businesses that need them most,” Stephen explains. “The traditional hourly billing model incentivizes lawyers to spend more time on tasks, which drives up costs. It’s not uncommon for a law firm partner to charge a minimum of $750 an hour or more, and many startups simply can’t afford that. Large firms are almost double in price.”
As a result, many founders turn to Google (and now ChatGPT) or seek advice from friends, attempting to handle legal tasks themselves. They are often asking themselves, “who can I trust?” with no real answers. So most of the time surprisingly they actually do nothing. But this DIY or head in the sand approach is risky. The smallest mistake in a contract can have huge consequences, and first-time founders often don’t know what’s standard or acceptable. Early-stage companies also tend to be a lower priority for law firms that offer discounted rates or deferred billing arrangements, meaning startups often face long delays in getting the help when they need it.
Paralex solves these problems by offering affordable, predictable on-demand legal services with fast turnaround times, so startups can focus on running their business without worrying about the cost or quality of legal advice.
How Paralex Works
Paralex simplifies the legal process through the use of technology with the attorney in the loop workflows all on one platform. Take for example, a customer is in need of a contract to be drafted. The customer first has a conversation with Paralex’s AI Agent describing what they are trying to achieve and the pertinent facts and business terms. Paralex then analyzes and summarizes the conversation and makes a recommendation for the appropriate contract template along with the proposed fixed price. Once the client has agreed, Paralex customizes that template to reflect the client’s needs. Clients then collaborate with an attorney, who confirms and reviews the document, makes any necessary changes and answers any questions they may have.
“We wanted to create a platform that gives startups the speed they need without sacrificing quality,” Stephen explains. “You shouldn’t have to wait several days for a contract. Our system delivers attorney-reviewed legal documents at lightning speed, and you know exactly what it will cost upfront.”
This approach eliminates the financial guesswork that often comes with legal services. Paralex operates on fixed pricing models, ensuring transparency and predictability for clients. Additionally, the platform is designed with scalability and security in mind, allowing businesses to use Paralex as they grow and their legal needs become more complex.
But what truly sets Paralex apart is its unique blend of AI-driven automation and human oversight. “Our attorney-in-the-loop workflows give clients the best of both worlds,” Stephen says. “AI handles routine tasks like intake, document drafting, and analysis, while a qualified attorney ensures that everything is accurate. It’s this combination of efficiency and reliability that really sets Paralex apart from others who are simply offering AI-enabled tools.”
In addition to attorney-reviewed documents, Paralex offers access to hundreds of attorney-vetted templates and a robust legal knowledge base wrapped in community. This ensures that clients have a solid foundation for everything from contracts to NDAs, without having to start from scratch, with built in peer support.
“We wanted to build a platform that’s as comprehensive as it is efficient,” Stephen adds. “Whether a startup needs a simple agreement or a more complex contract or needs advisory support in their startup journey, Paralex offers everything they need in one place.”
A Solo Founder’s Journey to Democratize Legal Access
Starting Paralex came with its share of challenges. As a solo founder, Stephen has had to wear many hats and make tough decisions without the support of a full team.
“It can certainly be lonely,” Stephen admits. “I tend to overanalyze things, which sometimes leads to analysis paralysis. But I’ve been fortunate to surround myself with great advisors and investors who’ve helped me push through those moments. Now, we’re building a strong team to support and move the vision for Paralex forward.”
As Paralex grows, the company is focused on onboarding early adopters and attorneys, using their feedback to refine the platform and improve the user experience. Stephen emphasizes that Paralex is committed to being a customer-first organization, prioritizing trust and reliability for startups.
“Our goal is to make Paralex the trusted legal partner for startups,” Stephen says. “We’re exploring partnerships with organizations that share our mission of helping early-stage companies succeed. Everything we do is aimed at ensuring our clients can rely on us for fast, affordable, and accurate legal services.”
The Future of AI and Democratizing Legal Access for Startups
Stephen envisions a future where AI shifts the legal industry away from the traditional hourly billing model toward value-based pricing. In this future, AI will handle many of the routine, repetitive tasks that currently consume lawyers’ time, allowing attorneys to focus on more strategic and complex work.
“AI will disrupt how legal services are delivered and priced for sure,” Stephen explains. “As AI takes over the repetitive tasks like contract drafting and advisory services, lawyers will be able to concentrate on higher-level responsibilities.”
Stephen also acknowledges the challenges associated with AI in legal services, particularly concerns around confidentiality and the potential for errors in AI-generated content—often called ‘hallucinations’.
“I’m confident these are technical issues that will be solved as AI evolves,” he says. “This is a ‘keep up or fall behind’ moment for the legal industry. Those who adapt will thrive, and those who don’t will find themselves left behind.”
With Paralex positioned at the forefront, Stephen sees a global opportunity to redefine legal services for startups and small businesses.
“We’re on the verge of a global shift in how legal services are delivered,” Stephen says. “At Paralex, we’re excited to be leading the way and set a new standard for what’s possible. Given the conservative nature of the legal industry, change is never rapid, but I believe that the market will eventually demand it.”
Reflecting on his journey so far, Stephen offers some advice for fellow entrepreneurs: “First, if you can align what you know with what you’re passionate about, it won’t feel like work. Startups are filled with highs and lows, but when your work is fueled by a passion that is aligned with your values, those low points are easier to get through. Second, surround yourself with amazing people. The quality of your team determines your company’s success.”
And with a smile, he adds, “And, of course, always get good legal advice.”
Become a Paralex Early Adopter
At Paralex, we’re disrupting the legal industry by blending AI-driven efficiency with human expertise. And this is just the beginning.
We invite you to join the Paralex Early Adopter waitlist. As an Early Adopter, you’ll enjoy a special standing as a founding member of the Paralex community and substantial savings compared to regular members.
Join us in shaping the future of legal services. For more information and to get on the waitlist, visit the Paralex Early Adopter Program page.