The LegalTech Fund (TLTF), a venture capital firm specialising in early-stage legal technology start-ups, has closed a second fund for $110m.
The joint lead investors in the fund were McDermott Will & Schulte, which invested $10m, and electronic discovery specialist Consilio.
The strong demand for the fund, which raised $28.5m in its first round, highlights the increasing attraction of legal technology for investors, said TLTF.
“Legal technology is no longer niche,” said TLTF co-founder and managing partner Zach Posner. “It is starting to be understood that it sits at the centre of every business transaction.”
Ira Coleman, chairman of McDermott, an anchor partner that invested in the first round, said the investment would give it access to technological innovations, which it would use to increase value to its clients.
Other investors in the second fund include tech-focused US rival Orrick; Canadian legaltech supplier Clio, which earlier this month was valued at $5bn; Docusign, an electronic signature software specialist; and Thomson Reuters Ventures, a venture capital fund specialising in enterprise technology.
Founded in 2021, Miami-based TLTF says it has invested in more than 80 entrepreneurs at start-ups, including Wexler, which makes litigation software, Entegrata, which helps legal teams manage their data, and Flo Recruit, which makes recruitment software for law firms.
Earlier this month, it emerged that McDermott is considering a restructuring that would enable private equity firms to take a financial stake in the firm, a move which would potentially allow it to increase its investment in new technology.
In March, New York-based Cleary Gottlieb Steen & Hamilton acquired Springbok AI, in a deal that saw the generative AI-focused legaltech company’s founder join it with a 10-strong team.
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