Extract from Ella Sherman’s article “Are 9-Figure Funding Rounds for Legal Tech Companies the New Normal?”
Lots of money has been flowing into the legal tech industry recently. Over the past 14 months, at least five legal tech companies raked in investments of $100 million or more.
Leaders in legal tech said these sky-high investments present an inflection point in the legal tech market, with nine-figure funding rounds likely to continue as the market for AI-powered legal tech expands.
“The investment community has discovered legal tech as a category, I think for the right reasons. We used to be in the back corner of tech investing. I think gen AI [has made] a significant shift—people are realizing that gen AI is going to transform not only the practice of law, but it also can mean bigger impact.… Legal tech may end up replacing some legal services,” Jeroen Plink, COO and co-founder of Legaltech Hub, told Legaltech News.
Plink added that legal technology that provides solutions in areas like contract management appeals not only to legal professionals, but also chief financial officers, and there’s overlap in other markets where this technology could be useful like compliance and procurement.
