Summary:
Legaltech startups have raised over $1 billion this year, leveraging AI to streamline legal work.
Harvey leads with more than $500 million in funding and $70 million in annual recurring revenue.
Luminance and Legora are also standout startups, with $165 million and $120 million in funding respectively.
Despite a slowing funding market, AI-driven legaltech firms continue to secure significant investments.
Legaltech startups are thriving, with over $1 billion raised in funding this year alone. These companies are leveraging AI to streamline legal work, from contract drafting to litigation outcome prediction, attracting significant investor interest despite a slowing funding market.
Harvey
Founded: 2022 Total funding: More than $500 million The hype: Harvey stands out in a crowded category, with lawyers at eight of the 10 highest-grossing US law firms using the platform. Its annual recurring revenue surpassed $70 million in April.
Luminance
Founded: 2015 Total funding: $165 million The hype: Luminance's legal contract review and drafting platform has seen a 6x growth in annual recurring revenue over the past two years.
Legora
Founded: 2023 Total funding: $120 million The hype: Legora is gaining ground with 250 clients in 20 markets, including major law firms like Cleary Gottlieb and Goodwin.
Eudia
Founded: 2023 Total funding: $105 million The hype: Eudia's custom agents promise to shrink months of legal grunt work down to days, focusing on in-house legal teams.
Supio
Founded: 2021 Total funding: $91 million The hype: Supio's platform helps plaintiff law firms by parsing medical records and police reports, quadrupling its revenue run rate over the past year.
Eve
Founded: 2020 Total funding: $61 million The hype: Eve helps plaintiff firms automate tedious tasks, adding more than 200 law firm customers over the last year.
Spellbook
Founded: 2018 Total funding: More than $30 million The hype: Spellbook's contract drafting and review tool has seen rising annual contract value for three straight years.
Paxton
Founded: 2023 Total funding: $28 million The hype: Paxton targets small and midsize firms, driving a 14x jump in monthly recurring revenue last year.
Theo Ai
Founded: 2024 Total funding: $6.4 million The hype: Theo Ai's platform helps attorneys predict case outcomes using historical data and real-time analytics.
Marveri
Founded: 2023 Total funding: $3.5 million The hype: Marveri's platform assists with due diligence by analyzing and querying corporate documents.
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