LegalOn Technologies has secured $50 million in a Series E funding round led by Growth Equity at Goldman Sachs Alternatives. This new investment pushes LegalOn’s total funding to $200 million, with additional participation from existing investor World Innovation Lab (WiL) and new backers Mori Hamada, Mizuho Bank, and Shoko Chukin. The financing highlights growing investor confidence in LegalOn’s leadership within the rapidly expanding legal AI sector.
The company, specializing in AI-driven contracting solutions, saw impressive growth over the past year, notably quadrupling its business in the US and UK. Currently serving over 7,000 customers globally, LegalOn has reported a 40% year-over-year increase in clientele. The company holds significant market share in Japan, supporting 25% of public companies and 87% of its Fortune 500, including 40 global Fortune 500 firms.
LegalOn addresses significant inefficiencies in the legal contracting process, including costly delays and increased risks. "Legal teams are buried in time-consuming work that slows them and their businesses down," said Daniel Lewis, Global CEO of LegalOn. "This funding helps us build and scale AI that eliminates tedious contracting work, streamlining workflows and freeing people to think, decide and lead."
LegalOn plans to utilize the new funds to enhance its AI capabilities and accelerate market expansion, particularly in the US and UK markets. The funding will support new product development efforts, including advanced AI agents and expanded legal workflow management tools scheduled for launch later this year.
The company also recently unveiled a strategic collaboration with OpenAI, developers of ChatGPT. This partnership enables LegalOn to integrate OpenAI’s advanced ChatGPT Enterprise and API, significantly speeding up the development of intuitive, adaptive legal AI solutions. Engineers from both companies are already working together to create innovative tools tailored specifically to complex legal workflows.
Founded in 2017 by Nozomu "Nozo" Tsunoda and headquartered in San Francisco and Tokyo, LegalOn has quickly become a prominent name in the field of legal technology. Its flagship AI-powered tool, Review, reduces contract review time by up to 85% by accurately identifying risks and suggesting revisions based on legal standards tailored to each organization.
"By combining advanced AI with deep legal expertise, LegalOn is reinventing the contracting process and empowering legal departments to work faster and more strategically," commented Stephanie Hui, Global Co-Head of Growth Equity at Goldman Sachs Alternatives.
LegalOn continues to expand its offerings, recently announcing its entry into matter management, further positioning the company as an essential technology partner for legal teams worldwide.
With robust financial support from renowned investors such as Goldman Sachs, SoftBank, World Innovation Lab (WiL), Mori Hamada, Mizuho Bank, and Shoko Chukin, LegalOn is well-equipped to maintain its trajectory of rapid global growth. The company’s commitment to trustworthy, innovative AI technology places it firmly at the forefront of the legal AI revolution.
