Israeli-founded AI contract review start-up Chamelio has has secured $26m in a Series A funding round.
The investment was led by venture capital firm Entrée Capital, alongside existing financiers AI infrastructure and technology early stage investment firms Work Bench and Emerge Ventures. They were joined by Bright Pixel Capital, the tech investment arm of the Sonae Group.
The fresh capital will go towards developing the company's proprietary legal action model, along with growing its legal engineering and product teams, with additional funds placed towards onboarding technology.
Chamelio's platform combines contract review and management, legal workflows and AI in one system. It stores and organises contracts, automatically extracting key terms, obligations and renewal dates, and answering queries over law firms’ documents.
CEO and co-founder, Alex Zilberman, said: "The mistake in legal AI has been assuming the future simply looks like today's lawyer with faster contractual fact-checking.
"AI in a legal setting shows dividends when it can make decisions intuitively, built on the corporate intelligence of each individual business. This is what Chamelio does.
“We ensure in-house legal departments deliver watertight contracts and outputs at AI speed, validated by the rigour of lawyers."
Eran Bielski, general partner at Entrée Capital, said: "What stood out to us was not only the strength of the product, but how quickly Chamelio's founders execute, learn from customer feedback and turn that feedback into a product with category-defining potential."
Chamelio claims the majority of in-house legal teams are continuing to rely on dated contract lifecycle management software, built to store contracts rather than analyse or act on them, resulting in onerous additional tasks that its product offerings can alleviate.
Its client list includes Wiz, monday.com, Socure, AppsFlyer and Wonderful.ai, as part of a customer base that has reached hundreds, the company said.
In January, Chamelio secured $10m in a seed investment round that was led by Work-Bench and Emerge with participation from additional investors.
It was founded two years ago by Zilberman, CTO Gal Lellouche and COO Gil Banyas, and is headquartered in New York after being established in Israel.
Zilberman was previously the VP for growth and partnerships at AI fintech firm Pagaya Investments for almost two-and-a-half years, before which he co-founded computer vision company AnyVision.
Lellouche was previously the senior director for AI for software development firm Sage, having earlier co-founded finance automation company Task Sheriff, which was acquired by Sage.
Banyas spent more than five years with software company Oosto, where latterly he was VP for global operations and general counsel.
Other recent financing rounds in the legaltech market include UK AI-powered due diligence provider Xapien raising $56m in a Series B round led by software-focused growth equity firm Spectrum Equity, which was joined by existing investor YFM Equity Partners, a specialist in growth capital for UK SMEs.
Chilean legal AI platform Magnar also secured $8m in a Series A funding round from investors that included Argentinian law firm Beccar Varela. The round was co-led by early-stage investor 6 Degrees Capital alongside Mexican start-up investor Hi Ventures.
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