CPE News (1.24.2024) – Spellbook has announced the second closing of its US $20 million Series A financing led by Inovia Capital with participation of Thomson Reuters Ventures, The Legaltech Fund, Bling Capital, Moxxie Ventures, Concrete Ventures, Path Ventures, N49P and Good News Ventures.
In May 2023, Spellbook announced closing of its US $10.9 million in Series A funding led by Moxxie Ventures, with participation from Thomson Reuters Ventures, Inovia Capital, The LegalTech Fund, Bling Capital, N49P, Concrete Ventures, Good News Ventures, Pelorus VC (Venture Newfoundland & Labrador) and others.
St. John’s, Newfound and Labrador based Spellbook is a legal software company which launched the first generative AI contract drafting tool in September 2022. The technology, powered by large language models like OpenAI’s GPT-4, is optimized using legal datasets for superior contracting performance
photo credit: Spellbook
Legal AI Startup Spellbook Raises $20M Series A Funding Round, Following 10x Revenue Growth
This new round, led by Inovia Capital, more than doubles Spellbook’s total funding and comes during a time of significant growth for the company.
January 24, 2024 09:00 AM Eastern Standard Time
TORONTO & ST. JOHN’S, Newfoundland–(BUSINESS WIRE)–Spellbook, the AI copilot for lawyers, today announced a $20M Series A funding round led by Inovia Capital. Thomson Reuters Ventures, The Legaltech Fund, Bling Capital, Moxxie Ventures, Concrete Ventures, Path Ventures, N49P and Good News Ventures also participated in the round, which now brings Spellbook’s total funding to more than $30M.
“We’ve been amazed by the explosive usage growth our platform has experienced, since launching Spellbook as the first generative AI contract drafting tool in 2022” shared Scott Stevenson, CEO and co-founder of Spellbook. “This raise marks a major milestone for our team, and is indicative of the market traction we saw in 2023. With the new capital, we’ll continue innovating within the legal AI sector, partnering with the most law firms of any generative AI that we know of –and more importantly, to continue delivering new value to our customers.”
Over the last seven months, since announcing seed funding, Spellbook’s customer base has grown nearly 300%, and the team is now working with over 1,700 law firms and legal teams. Company revenue also grew 10x from 2022 to 2023. And on the backend of the Spellbook platform, more than 86,000 contracts are being opened by Spellbook each month, with this number growing quickly month over month.
“We at Inovia are proud to support Scott, Matt and Dan and their exceptional team at Spellbook,” shared Steven Woods, Partner at Inovia Capital. “The legal landscape is a prime example of value creation through the careful and appropriate use of Large Language Models. Spellbook demonstrates what can happen when one deeply integrates new capabilities into high-priority workflows and relentlessly experiments, measures and iterates to drive the most value. We are excited to continue working together and helping this team build the future of legal technology.”
Spellbook’s platform is changing how thousands of lawyers globally work. For example, Spellbook user Annie Haggar, Founder and Principal at Cyber GC, shared, “Every time I’m working on an agreement, I have Spellbook open. Using their technology saves me anywhere from 25-30% of my time.”
With this new funding, the Spellbook team plans to quickly scale into 30,000 law firms worldwide, while continuing to lead the market with new functionality: AI that mimics the style of a lawyer, AI that can automate a lawyer’s full end-to-end workflow, starting with a client email, and AI that is 10x more accurate for contract work than anything else on the market.
To learn more about Spellbook and the company’s future plans, visit https://www.spellbook.legal/.
Spellbook is a legal software company which launched the first generative AI contract drafting tool in September 2022. The technology, powered by large language models like OpenAI’s GPT-4, is optimized using legal datasets for superior contracting performance. More than 1,700 law firms and legal team customers across the industry use Spellbook to support their lawyers with the resources to make more accurate and efficient legal decisions when drafting contracts and supporting documents.