The contract review stays a slow, manual process that tenses legal syndromes, forcing lawyers to screen a dense language, flagship risk and translating legal conditions.
In fact, the problem is so common that for the last few years in Tokyo Legalon technologies It had open doors to this market: AI’s review software for legal teams is used today by 7,000 organizations in Japan, the United States and Great Britain, as the company claims, and runs on the Japanese market, and 25% of all public corporations in the country use the platform.
Legalon tool to review the contract, Reviewidentifies risk and suggests editions based on textbooks built by lawyers and the legal standards of each client. The company claims that the review reduces the review time by up to 85% while improving quality and accuracy.
Success, nevertheless, won’t soften the ambition of Legalon. The company now wants to build AI Agent tools to accompany its software, and recently collected $ 50 million to do this.
The E series financing round is run by the Goldman Sachs Goldman Fund and participation in existing World Innovation Lab (WIL) investors has been recorded. New investors Mori Hamada and Matsumoto (legal company in Japan), Mizuho Bank and Shoko Chukin Bank also invested.
While many recent funds are devoted to developing more AI AGENT products, the company also increases its efforts to the market in the USA and Great Britain, where it claims that its activity was 4 times in the last yr.
Legalon refused to disclose the valuation.
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Founded by two former corporate lawyers, Tsunoda and Masataka Ogasawar knock in 2017, Legalon goals to solve time -consuming tasks before and after the process of reviewing the contract, comparable to organizing legal applications and automation of contract management.
According to Daniel Lewis, the Global General Director of Legalon, the company stands out from the hordes of legal technological startups using artificial intelligence thanks to the basis in the scope of legal experts developed by a lawyer. This base, says, makes Legalon, unlike other tools that are based on users to build rules from scratch or the use of general AI models that do not have the precision required for legal work.
“Our approach provides reviews of contracts with real legal standards, thanks to which production is more accurate, consistent and practical for legal teams. In addition, we have over 50 textbooks built by lawyers, trouble-free integration with existing work flows, and our solution works outside the box on the first day,” Lewis said.
Last week, the startup launched one other tool: Material management It helps legal teams to track the demands of contracts, appoint owners, connect matters with relevant individuals and documents, and cooperate with other departments.
The company also hit the technological partnership not related to Equity of OpenAI, which provides Legalon, access to advanced models of large ChatGPT Moder languages.
“This is technical cooperation,” Lewis explained. “It gives us early access to their latest models and positions our engineers to work next to each other with OpenAI engineers. So in this respect they will develop our goal, which is building the latest [AI] Agents using great technology, but the right to justify it in our reserved legal content and specialist knowledge. “
The AI revolution seems to be a huge wind for legal technological startups around the world. In June, Harvey AI secured $ 300 million in financing of the E series, exceeding the valuation to $ 5 billion, and in last yr Clio also raised $ 300 million, reaching a valuation of $ 3 billion.
But even when the generative AI transforms the legal industry, Lewis does not think that it is going to replace lawyers. “The state of technology is not yet there, and replacing lawyers is not even our vision,” he said. “Lawyers are still in the place of the drivers. Things that AI cannot do perfectly today are by definition, by definition, what only people can do. And lawyers who bend in this responsibility – to supervise, edit, issue judgment – they are those who now see the most unusual AI lever.”
The E series brings total legalon capital to over $ 200 million. Investors include Softbank Vision Fund, HSG (previously often called Sequoia Capital China), Japanese company Venture Capital Jafco and Mufg Bank.