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- As the legal industry seeks to streamline efficiency and meet client demands, startups offering e-discovery, document management, and contract analysis services are becoming increasingly sought after.
- Business Insider used data from Crunchbase and PitchBook to compile a list of the 10 legal tech startups that have raised the most funding from VC investors.
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Even though legal tech has been around for a while, it wasn’t until relatively recently that it’s really piqued investors’ attention.
VCs are increasingly seeing promise in the space, opening their wallets to fund legal tech startups. Last year, Bloomberg Law reported that legal tech investments hit at least $1.2 billion by the end of the third quarter, surpassing the previous year’s record of $1 billion.
This year, legal tech companies are seeing huge swells in investment, such as e-discovery startup, Everlaw, which swept in $62 million in its Series C funding this March.
The demand for innovation comes from law firms desiring greater efficiency on one hand, and clients seeking lower costs on the other, as previously reported by Business Insider. The novel coronavirus pandemic, which has forced most businesses to adopt remote work, has only accelerated this trend toward tech.
Using data from Crunchbase and PitchBook, Business Insider found the top 10 legal startups — from document management to contract automation — that have raked in the most money from investors.
Total funding raised:$276 million
Investors include:Bessemer Venture Partners, TCV, JMI Equity
What it does:Legaltech giant Clio offers a suite of web-based tools designed for law firms, including case and document management, accounting, and client intake. The startup recently raked in a massive $250 million in Series D funding, led by TCV and JMI Equity, in September 2019.
Total funding raised:$211 million
Investors include:Greycroft, Premji Invest, Meritech Capital Partners
What it does: Contract lifecycle management company, Icertis, is used by major companies like Johnson & Johnson, Microsoft, and Adobe, per its website. Most recently, it raised $115 million in its Series E round in July 2019.
Total funding raised:$133 million
Investors include:LiveOak Venture Partners, Bessemer Venture Partners
What it does:Founded out of a boutique litigation firm in Texas, DISCO is an e-discovery company that uses AI and cloud computing to accelerate document review and streamline case management. It’s used by over 400 law firms, including 75 of the Am Law 200, according to the startup.
Total funding raised:$125 million
Investors include:ICONIQ Capital
What it does:The e-discovery platform, Relativity, helps law firms and government agencies manage large volumes of data, streamlining litigation, investigations, and compliance projects. The platform is used in more than 40 countries by organizations such as the US Department of Justice, more than 70 Fortune 100 companies, and 198 of the Am Law 200, according to the startup’s website.
Total funding raised:$100 million
Investors include: Leeds Equity Partners
What it does: Exterro offers legal governance, risk, and compliance platform for in-house legal and IT teams at Global 2000 and AmLaw 200 organizations, providing them with software that helps with e-discovery, data privacy, and FOIA & public records requests, among others.
Total funding raised:$100 million
Investors include:Y Combinator, Refactor Capital, Harlan Capital Partners
What it does:Legalist, founded by two Harvard drop-outs, Eva Shang and Christian Haigh, created a buzz in the legaltech scene when it launched in 2016. The startup funds commercial litigation, using technology to monitor and scrape state and federal court records to select cases for investment.
Total funding raised:$96.6 million
Investors include:Andreessen Horowitz, Menlo Ventures, Ulu Ventures, CapitalG
What it does:E-discovery startup Everlaw is a cloud-based collaboration software that facilitates the process of organizing and sifting through millions of documents, emails, and media exchanged between legal teams before a trial. It announced a $62 million Series C in March, as reported in TechCrunch.
Total funding raised:$84 million
Investors include:Y Combinator, Sequoia Capital
What it does:Founded by Jason Boehmig, a former attorney at tech-focused law firm Fenwick & West, and Cai GoGwilt, a software engineer at Palantir, Ironclad digitizes and automates contracts to streamline the entire contract process. The startup raised $50 million in September 2019 for its Series C, led by Y Combinator.
Total funding raised:$83.3 million
Investors include:Second Century Ventures, Polaris Partners
What it does:Notarize connects individual consumers and businesses with an online notary. The platform raised $35 million in a Series C round of funding in March, just as the novel coronavirus pandemic was forcing my businesses to work remotely. According to VentureBeat, the Boston-based startup said it saw a 400% increase from April to June.