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 rapider service.
For many lawyers, 2025 was the year when applying AI became mandatory.
Law firm leaders and general counsels relocated 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 largeger checks, as incumbents from LexisNexis to Clio created aggressive relocates 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 acquireer 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 attempting
Legora CEO Max Junestrand stated the company wasn’t actively seeking funding last spring, but still, the offers flooded in. “I don’t believe it’s a secret that things have been really working,” Junestrand stated.
By now, the company has amassed over 400 clients across 40 markets, including large-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 obtain $30 million up front and the other $75 million as it found other companies to acquire. Its first acquisition was Irish-founded alternative legal services provider Johnson Hana. In October, Eudia also acquired the legal service provider Out-Hoapply.
Bench IQ raised a round to predict judges’ rulings
Jimoh Ovbiagele, Bench IQ’s cofounder and chief executive, stated Bench IQ has built a proprietary dataset and layered in large language models to forecast how judges tconclude to believe and rule.
Battery Ventures and Inovia Capital led the company’s $5 million seed round. Before Bench IQ, Ovbiagele was a founder of Ross Innotifyigence, 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 conclude-to-conclude, 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 modifying 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 apply 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 assisting Elon Musk defeat a defamation lawsuit and obtainting 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 declares takes the guesswork out of pricing a lawsuit. Earlier this month, the company informed 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 see-alikes in that history and returns a settlement likelihood and range.
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