Most startup founders chase revenue charts, headline funding rounds and polished stage presentations.
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founders → chase → presentations
Alexander Kardos-Nyheim took a different route.
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Nyheim → take → route
While training as a solicitor at Allen & Overy, he built Safe Sign Technologies, a legal-specific large language model (LLM) startup designed to make artificial intelligence more reliable for legal work.
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intelligence → train → work
Roughly two and a half years after its founding, Thomson Reuters acquired the company before it had generated revenue from subscriptions.
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it → acquire → subscriptions
The acquisition, announced on 21 August 2024, demonstrated how specialised research and technical expertise can create value before a business has paying customers.
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business → announce → customers
The story raises a question every founder, investor and legal professional should consider, what truly makes a young company valuable?
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company → raise → question
From a teenage planning dispute to an unusual acquisition, Kardos-Nyheim’s journey offers a closer look at the changing economics of artificial intelligence.
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journey → offer → intelligence
How a teenage planning dispute at Rollins House in south-east London shaped a future startup founder
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dispute → shape → founder
The story begins long before any startup existed.
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startup → begin → ?
According to a first-person commentary published by Fortune, the house where Kardos-Nyheim grew up, Rollins House, was a run-down Art Deco former factory in south-east London.
uncertain
Nyheim → accord → London
His mother lived there, and a developer wanted to redevelop the site into flats.
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developer → live → flats
The family could not afford lawyers, so, while still at school, he taught himself planning law between bouts of exam revision.
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he → afford → revision
He examined records that others had overlooked and assembled a dossier of precedents.
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others → examine → precedents
Facing a council panel across the table from an experienced law firm, he presented the family’s case, and they won.
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they → face → case
The experience taught him the value of detailed research, persistence and challenging assumptions, lessons that would later influence his approach to legal technology.
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that → teach → technology
Training as a solicitor at Allen & Overy by day and building a startup at dawn and every night
Years later, that determination was tested in a far more demanding setting.
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determination → train → setting
Kardos-Nyheim trained as a solicitor at Allen & Overy while developing Safe Sign Technologies outside working hours.
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Nyheim → train → hours
He began at half past four in the morning, working on the company before a full day of legal training, then returned to the startup each evening.
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He → begin → startup
Separately, the company often came close to running out of cash and needed new funding to keep going.
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company → come → funding
Its initial idea, a consumer-facing legal product, also failed to attract investors, forcing the team to rethink its direction.
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idea → face → direction
Instead of building another legal service, the company turned towards the underlying technology, artificial intelligence models trained specifically for legal reasoning and research.
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company → build → reasoning
Kardos-Nyheim’s background combined legal training with an understanding of the difficulties faced by people trying to navigate complicated rules and documents.
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background → combine → rules
That combination became central to Safe Sign’s identity.
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combination → become → identity
The Law Gazette’s report on the acquisition identifies him as a Cambridge law graduate and former trainee solicitor at A&O Shearman, the firm formed through the combination of Allen & Overy and Shearman & Sterling.
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report → identify → Allen
Alexander Kardos-Nyheim (Image: City of London School)
Securing capital from North American investors after British investors repeatedly said no
Funding proved equally difficult.
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Funding → secure → investors
Local investors repeatedly turned him down, according to his account in Fortune, so Kardos-Nyheim travelled to New York with only £200 to his name.
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Nyheim → turn → name
The effort paid off, with nearly all of the company’s capital eventually coming from North America rather than the UK.
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all → pay → UK
He observed a difference in the questions investors asked, American backers were more likely to explore how they could help, while British investors tended to focus on how the venture might fail.
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venture → observe → questions
Once the company had enough funding to continue, the team abandoned the immediate pursuit of revenue and concentrated on building its proprietary artificial intelligence models.
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team → have → models
Its researchers were drawn from institutions including the University of Cambridge, the Massachusetts Institute of Technology, Harvard University and DeepMind.
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researchers → draw → Technology
The objective was not simply to add an AI chatbot to an existing legal service, but to develop models specifically for the demands of legal work.
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objective → add → work
This was a difficult proposition to sell.
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This → sell → ?
Developing specialised LLMs requires considerable research, testing and technical expertise, while commercial returns can take time to emerge.
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returns → develop → time
Investors expecting rapid sales were therefore less receptive to a business whose principal asset was still under development; by Kardos-Nyheim’s account, most lost interest.
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most → expect → interest
Safe Sign nevertheless continued to prioritise the technology, betting that reliability and domain-specific performance would eventually distinguish it from general-purpose AI systems.
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reliability → continue → systems
Thomson Reuters acquires a pre-revenue artificial intelligence startup in an unusual deal
The research-led strategy ultimately attracted a major buyer.
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strategy → acquire → buyer
On 21 August 2024, Thomson Reuters announced its acquisition of Safe Sign Technologies, describing the UK business as a developer of legal-specific large language models.
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Reuters → announce → models
Based on its own internal assessment, the company said Safe Sign’s models had demonstrated industry-leading performance in domain-specific evaluations, and that the acquisition would help accelerate the development of its CoCounsel AI assistant.
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acquisition → base → assistant
The price was not disclosed.
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price → disclose → ?
The deal was particularly notable because Safe Sign had no subscription revenue when it was acquired.
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it → have → revenue
…and 21 more, not listed.