US legaltech provider Lexion raises $11m to boost AI-powered contract management business
Investors include Khosla Ventures, Madrona Venture Group and Wilson Sonsini
Seattle-based AI-powered contract management system provider Lexion has secured an $11m Series A funding round from a group of investors led by Khosla Ventures and existing backers Madrona Venture Group and Wilson Sonsini.
The funding round brings total investment in the company to $15.2m and will see Khosla Ventures’ principal Kanu Gulati join Lexion’s board. The funds will be used to scale the business and invest in further AI and product innovation.
Gaurav Oberoi, co-founder and CEO of Lexion, said: “In-house lawyers spend far too much time on mundane tasks like checking if an active NDA exists, or manually filling out spreadsheets to track key dates and non-standard terms in their contracts. What makes Lexion special, in this rapidly growing industry, is that it’s a sophisticated AI product that’s incredibly easy to use, accurate and fast and eliminates rote work by automatically pulling these key data points from contracts.”
Lexion is a graduate from the Allen Institute for AI (AI2) incubator in 2019 and has built an AI-based system that turns any contract text into structured data, which makes it easier to search and manage. Lexion says its revenue has grown 400% over the past six months as demand for contract management tech increases.
Vinod Khosla, founder of Khosla Ventures, said: “We invested in Lexion because their team has the rare combination of deep technical expertise in building sophisticated AI systems and a proven track record in delivering Software-as-a-Service applications that solve real problems. This combination of cutting-edge technology, with simple and practical application, is exactly how the value of AI will get realised in corporations and is why we think Lexion has a winning advantage in this space.”
A number of companies including OfferUp, Blue Nile and Outreach have already started using Lexion’s tech ahead of the full rollout in the third quarter of this year.
Nathan Garnett, general counsel at OfferUp, said: “Lexion is an incredible addition to our toolkit, saving my team hours in filing, finding and reporting on contracts. Not only was it quick to get up and running with all of our legacy agreements, but it’s also easy enough to use that we didn’t have to spend time on user training and rollout… and my team can focus on helping drive business results, instead of on administrative tasks.”
A number of legaltech companies have been busy raising capital or planning to raise cash this year. Earlier this month US legaltech provider Intapp filed for a potential initial public offering, while in April Canadian legaltech business Clio raised $110m in a Series E funding round that pumped its valuation to $1.6bn, making it the world’s first practice management unicorn.