For the first time last year, annual investment in legal technology companies reached $1 billion. This year, legal tech investments have already surpassed that, totaling at least $1.2 billion to date — a record for annual investment in legal technology, and with three months still to go before year end.
I surveyed investments in legal technology this year and found a total of $1,190,215,968 invested to date. The actual number is even higher, because two significant investments announced just this month — in LexFox, a German company that provides legal portals for consumers, and in Axiom, one of the world’s largest alternative legal services providers — did not disclose their amounts.
The year’s biggest deal to date happened just two weeks ago, with news that two major growth equity companies had invested a whopping $250 million in law practice management company Clio. The second biggest deal came just days into 2019, when enterprise-workflow company Onit announced a $200 million investment.
Of the 41 companies listed below, at least 12 are focused on some aspect of contracts and contracting – including contract management, contract review and contract automation. These include four of the top six – Onit, Icertis, ContractPodAI and Fadada.
Three notes about this data:
- Where investment amounts were reported in non-U.S. currencies, I have converted the amounts to U.S. dollars as of the date of this post, not as of the date of the announcements.
- The numbers are based on publicly reported investments, which may not reveal the full picture. For example, I have listed a $40 million investment in Litera based on the amount reported by the investor, HgCapital Trust plc. However, that investment came from a specific fund as part of Hg’s acquisition of Litera, and the total acquisition price, while not disclosed, is said to have been more than $400 million.
- This chart does not include mergers and acquisitions.
Here are the year’s legal tech investments to date.
Legal Tech Investments 2019
|Clio||$250,000,000||Canada||Law practice management||9/4/2019||Series D|
|Onit||$200,000,000||U.S.||Legal and contract management and automation||1/8/2019||Private Equity|
|Icertis||$115,000,000||U.S.||Cloud-based contract lifecycle management||7/17/2019||Series E|
|ContractPodAI||$55,000,000||U.K.||AI contract management||7/18/2019||Series B|
|Fadada||$55,000,000||China||Electronic signatures and contract management||3/6/2019||Series C|
|Litify||$50,000,000||U.S.||Law practice management||6/6/2019||Series A|
|Litera Microsystems||$40,000,000||U.S.||Document technology||5/7/2019||Private equity|
|Notarize||$36,937,968||U.S.||Online notary public service||8/27/2019||Series B|
|Elevate||$25,000,000||U.S.||Alternative legal services provider||6/17/2019||Venture|
|Ironclad||$23,000,000||U.S.||Contract management for legal departments||1/30/2019||Series B|
|Verbit||$23,000,000||U.S.||AI-driven transcription and captioning||1/29/2019||Series A|
|Nivaura||$20,000,000||U.K.||Issuance of financial instruments||2/27/2019||Seed|
|Seal||$15,000,000||U.S.||Contract discovery and management||3/28/2019||Corporate|
|164||$15,000,000||China||Legal service platform||5/6/2019||Seed|
|Helpcheck||$12,500,000||Germany||Legal help for consumers||1/16/2019||Series A|
|Legalstart.fr||$11,300,000||France||Create and manage legal documents||3/12/2019||Venture|
|Luminance||$10,000,000||U.K.||AI document analysis and review||2/7/2019||Series B|
|ayfie||$10,000,000||Norway||Search and text analytics||8/15/2019||Venture|
|Farewill||$9,400,000||U.K.||Online will creation||1/21/2019||Venture|
|Peppermint Technology||$9,000,000||U.K.||Law practice management||1/25/2019||Corporate|
|Brightflag||$8,000,000||Ireland||Manage outside counsel costs||4/5/2019||Series A|
|Filevine||$8,300,000||U.S.||Law practice management||1/29/2019||Series A|
|Boundless||$7,800,000||U.S.||Immigration platform||3/21/2019||Series A|
|Signaturit||$7,800,000||Spain||Electronic signatures and document management||2/19/2019||Series A|
|Clause||$5,500,000||U.S.||Smart contracts application||6/27/2019||Series A|
|LinkSquares||$4,800,000||U.S.||AI-powered contract management||3/7/2019||Seed|
|Plexus||$4,650,000||Australia||Legal automation for in-house counsel||5/10/2019||Series A|
|DoNotPay||$4,600,000||U.K.||Legal apps for consumers||7/3/2019||Seed|
|Evisort||$4,500,000||U.S.||AI-powered contract management||2/12/2019||Seed|
|Lexion||$4,200,000||U.S.||AI contract management||7/19/2019||Seed|
|SeedLegals||$4,000,000||U.K.||Platform to manage seed-funding rounds in U.K.||5/28/2019||Series A|
|Clairvolex||$3,500,000||U.S.||IP asset management||6/26/2019||Series B|
|Legal OS||$2,200,000||Germany||Library of legal content||6/19/2019||Seed|
|Genie AI||$2,500,000||U.K.||Automatic legal contract drafting||7/23/2019||Seed|
|Orbital Witness||$1,540,000||U.K.||Real estate due diligence||5/16/2019||Seed|
|Autto||$1,000,000||U.K.||Legal workflow automation||8/22/2019||Seed|
|Josef||$688,000||Australia||Platform for building legal chatbots||5/6/2019||Seed|
In addition to these, there have been other investments in which the amount has not been disclosed. Among these:
- LexFox, a German company that provides legal portals for consumers, announced Sept. 3 that it had raised a “seven-digit round” of financing led by Earlybird and Target Global, but it did not disclose the amount.
- Axiom, one of the world’s largest alternative legal services providers, announced on Sept. 5 that it has entered into an agreement with private equity firm Permira by which a company backed by Permira funds will take a significant investment in Axiom.