2025 sparked a legal tech funding frenzy. Here were some of the notable deals.
The legal tech industry is experiencing a remarkable surge in venture capital funding, with investments reaching an impressive $3.2 billion in 2025. This growth reflects a significant shift in how law firms are integrating artificial intelligence (AI) into their operations, moving from pilot projects to full-scale implementations. Law firm leaders and general counsels are now standardizing AI tools for research and drafting, which has led to the expansion of innovation teams and enhanced training for junior lawyers. This increased demand for AI-driven solutions has spurred a wave of investment in startups focused on contract review, corporate due diligence, and predictive analytics, with notable players like Harvey and Legora leading the pack. Despite some concerns about a potential bubble in valuations, the underlying buyer demand suggests that these companies are generating real revenue.
Among the standout startups is Legora, which raised a staggering $150 million in Series C funding led by Bessemer Venture Partners, despite not actively seeking investment. CEO Max Junestrand highlighted that the company has attracted over 400 clients, including prestigious law firms such as Cleary Gottlieb and Sweden’s Mannheimer Swartling. Meanwhile, Eudia has made headlines with its unique approach to funding, securing $105 million in Series A financing from General Catalyst, with a stipulation to acquire other companies. Their acquisitions include Irish legal service provider Johnson Hana and Out-House, reflecting a strategic expansion in the legal services market. Other notable mentions include Bench IQ, which raised $5 million to develop predictive tools for judges’ rulings, and Casium, founded by former Microsoft AI scientist Priyanka Kulkarni, which aims to streamline the complex work visa process for employers.
Additionally, several innovative startups are emerging with cutting-edge solutions in the legal space. Covenant, co-founded by Jen Berrent, has developed an AI-native law firm that reviews fund documents for private market investors using large language models. Marveri is working to drastically reduce the time required for manual document review, while Theo Ai is creating a predictive engine that helps law firms assess the likelihood of settlement outcomes based on historical data. The legal tech landscape is rapidly evolving, driven by the integration of AI and the increasing recognition of its potential to enhance efficiency and accuracy in legal services. As the sector continues to attract significant investment, it remains to be seen how these developments will shape the future of legal practice.
https://www.youtube.com/watch?v=PMB61B6O2u4
Founders of Legora; Casium; Eudia
Legora; Casium; Eudia
Legal tech has had a breakout year for VC funding, which reached $3.2 billion in 2025. As the sector attracts investment, questions remain about a bubble and real revenue gains. Meanwhile, law firms are exploring ways to utilize AI to deliver better and faster service.
For many lawyers, 2025 was the year when using
AI
became mandatory.
Law firm leaders and general counsels moved the tech from pilots to production, standardizing research and drafting copilots while expanding innovation teams and
training junior lawyers
.
That demand fueled investment in a new crop of startups across contract review, corporate due diligence, predictive analytics, and more. Buzzy legaltech startups like
Harvey
and
Legora
pulled in bigger checks, as incumbents from
LexisNexis
to
Clio
made aggressive moves to keep pace.
Funding for legal companies hit $3.2 billion this year, according to Business Insider’s analysis of Crunchbase data and recent financings. Valuations on some names have prompted
bubble talk
, but buyer demand would suggest there’s at least real
revenue
beneath the hype.
This year, Business Insider had the inside track on legal tech companies raising money. Read on for our coverage of some of 2025’s most notable deals.
Legora raised $80 million — without even trying
Legora CEO Max Junestrand said the company wasn’t actively seeking funding last spring, but still, the offers flooded in. “I don’t think it’s a secret that things have been really working,” Junestrand said.
By now, the company has amassed over 400 clients across 40 markets, including big-league law firms like Cleary Gottlieb, Goodwin, Bird & Bird, and Mannheimer Swartling, Sweden’s largest law firm.
In October, Legora closed another blockbuster round, raising $150 million in Series C funding, led by Bessemer Venture Partners.
Eudia’s $75 million shopping spree
Eudia emerged from stealth in February with $105 million in Series A funding from General Catalyst. The investment had just one major condition: Eudia would get $30 million up front and the other $75 million as it found other companies to buy. Its first acquisition was Irish-founded alternative legal services provider Johnson Hana. In October, Eudia also acquired the legal service provider Out-House.
Bench IQ raised a round to predict judges’ rulings
Jimoh Ovbiagele, Bench IQ’s cofounder and chief executive, said Bench IQ has built a proprietary dataset and layered in large language models to forecast how judges tend to think and rule.
Battery Ventures and Inovia Capital led the company’s $5 million seed round. Before Bench IQ, Ovbiagele was a founder of Ross Intelligence, the legal research company that shut down after a costly lawsuit brought by Thomson Reuters.
An ex-Microsoft scientist takes on work visas
Priyanka Kulkarni spent nine years on a visa while working as an AI scientist for Microsoft. Now, her startup, Casium, which raised $5 million in seed funding, sells employers a portal to run visa cases end-to-end, replacing the Excel spreadsheets and, in many instances, the outside law firms that they usually rely on. The product is designed to respond to the rapidly changing employment immigration landscape as policy has swung in recent months.
The software-first approach to legal advice
WeWork’s former top lawyer raised $4 million to build an AI-native law firm. Covenant, cofounded by Jen Berrent, reviews fund docs for private market investors. Its tools use large language models to root through hundreds of pages of legal documents, raise red flags, and suggest stronger terms that are tailored to the investor’s own playbook.
A lawyer-backed startup for due diligence
Marveri wants to cut manual review from months to minutes. Their software sucks up all of a corporation’s documents, then automatically renames, organizes, and analyzes them. The company emerged from stealth with $3.5 million in funding. High-profile litigator Alex Spiro — best known for helping Elon Musk defeat a defamation lawsuit and getting Alec Baldwin’s manslaughter case dismissed — is advising the Marveri team.
Attorney’s crystal ball into settlement rulings
Theo Ai is building a “predictive engine” tool, aimed at law firms and large corporations, that it says takes the guesswork out of pricing a lawsuit. Earlier this month, the company told Business Insider it raised $3 million in new funding from Run Ventures, bringing total backing to more than $10 million. Trained on a firm’s own data, when a new case lands, the model finds look-alikes in that history and returns a settlement likelihood and range.
Read the original article on
Business Insider
