Spellbook has closed a $50 million Series B funding round led by Keith Rabois, Managing Director at Khosla Ventures. The round includes participation from Threshold Ventures and existing investors Inovia Capital, Bling Capital, Moxxie Ventures, Path Ventures, and Jean-Michel Lemieux. The investment values the Toronto-based company at $350 million post-money and pushes total funding past $80 million.
The raise comes at a time when Spellbook is experiencing rapid growth. The company has now processed more than 10 million contracts through its platform, serving clients like Nestlé, eBay, and international law firm Kennedys. Revenue is on track to triple this year, and the platform now serves nearly 4,000 law firms and in-house legal teams across 80 countries—more than any comparable AI contract review product.
The legal services industry represents a massive opportunity. Contracts channel approximately $30 trillion annually in the United States alone, and the broader transactional legal services market is valued at $1 trillion. Yet the industry has seen relatively little technological change over the past two decades.
"We're at the spreadsheet moment for lawyers," said Scott Stevenson, CEO and co-founder of Spellbook. "Just as spreadsheets transformed accounting, large language models are transforming law after 20 years of technological stagnation. With $30 trillion running through contracts annually in the U.S. alone, even small efficiency gains create massive value. This funding accelerates our mission to make contracts move at the speed of commerce."
The new funding will support several strategic priorities. Spellbook plans to expand its capabilities beyond contract review to cover the full scope of transactional work. The company will also scale its go-to-market teams to capture a larger share of the legal services market and invest in AI features that deliver deeper contract intelligence grounded in real-time market data.
According to Stevenson, the goal is to help contracts move faster without sacrificing quality or control. The company is developing tools that give lawyers data-backed positions they can cite in negotiations, moving away from generic AI outputs that lack substantive grounding.
Keith Rabois, who will join Spellbook's board of directors as part of this funding round, sees parallels between Spellbook and other successful platforms that democratized access to business tools.
"Spellbook is using technology to make law faster, better, and more transparent," said Keith Rabois, Managing Director of Khosla Ventures, who will join Spellbook's board of directors. "It's the Shopify and Square democratization story for lawyers."
The investment thesis centers on Spellbook's ability to integrate seamlessly into existing legal workflows. Unlike competitors that require lengthy enterprise rollouts, Spellbook works directly within Microsoft Word, where lawyers already spend most of their time.
Spellbook positions itself as "Cursor for contracts," emphasizing integration over disruption. The platform doesn't ask lawyers to abandon their existing tools or workflows. Instead, it augments them.
"We think Cursor has been so successful because it's like an electric bicycle for engineers. They already had a bicycle – with Cursor they are still pedalling and still steering, but they can get up hills much faster," said Stevenson. "We have the same philosophy at Spellbook. We don't require lawyers to totally change how they work, or to give up control. We just help them ascend hills faster."
This approach has proven effective in driving adoption. Lawyers can start using Spellbook immediately without waiting for IT approval or going through extensive training programs.
One area where Spellbook is investing heavily is in making its AI outputs more useful for real-world negotiations. Lawyers often complain that generic AI tools produce suggestions that sound plausible but lack the backing needed to win tough negotiations.
Spellbook's answer is to ground its recommendations in real-time market data, lawyer preferences, and deal history. The company has already started rolling out features like Market Comparison and Preference Learning in beta, with broader availability planned for coming months. These tools aim to give lawyers concrete data points they can reference when pushing back on unfavorable terms.
The company is also developing Spellbook Associate, described as the first AI agent capable of handling multi-document transactional drafting—a more complex task than single-document review.
Spellbook launched in 2022 as the first generative AI tool specifically designed for lawyers. The timing coincided with the broader emergence of large language models, and the company quickly established itself as a leader in legal AI for transactional work.
The platform is powered by large language models, including OpenAI's latest technology, but optimized specifically for legal use cases. This specialization has helped nearly 4,000 legal teams improve their contract workflows and reduce tedious manual work.
The company is led by CEO and co-founder Scott Stevenson, who has focused on building a product that lawyers actually want to use rather than one that impresses technologists.
Spellbook has attracted investment from firms with deep expertise in both legal technology and enterprise software. The investor roster includes Khosla Ventures, Thomson Reuters Ventures, Inovia Capital, The Legaltech Fund, Bling Capital, and Moxxie Ventures.
This combination brings both capital and strategic value. Thomson Reuters Ventures, for example, offers connections throughout the legal industry, while Khosla Ventures brings experience scaling enterprise software companies.
With this latest round, Spellbook is well-positioned to execute on its vision of making contract work faster and more efficient. Whether it can capture a meaningful share of the trillion-dollar legal services market will depend on continued product innovation and market execution, but the company now has the resources to find out.
