Wordsmith AI, which serves the in-house legal market, has raised a further $14m following an extension to its Series B funding round.
The new investment was led by venture capital firm Intact Private Capital, alongside existing investors Highland Europe and Index Ventures. FT Ventures also became a stakeholder.
The funding is set to expand Wordsmith’s presence in North America, as well as strengthen its footprint in the financial services and insurance sectors.
Financing for the Series B round was announced in June when $70m was secured, led by Highland Europe and Index Ventures.
Overall, the total investment in the company has surpassed $100m. In June last year, $25m was raised in its Series A funding round spearheaded by Index Ventures, which also led its 2024 seed funding round of $5m.
It was joined by investment firm General Catalyst along with Felix Capital, Yellow and S16vc.
Wordsmith AI's platform is intended to help in-house teams handle tasks such as processing queries, reviewing documents and managing compliance workflows.
Ross McNairn, CEO and co-founder of Wordsmith, said: “Every dollar that leaves a legal team and goes to outside counsel is a decision. Too often, those decisions are made by default rather than by design, because legal teams have never had the infrastructure to handle the work internally. Wordsmith gives them that infrastructure.
“Requests come in, AI agents complete the routine work, lawyers approve what requires judgment, and every step is recorded. The result is a legal function that keeps more work in-house, spends less on external counsel, and can finally show the business the impact it delivers.”
Alexandra Calinikos, chief investment officer at FT Ventures, said that Wordsmith was rethinking not only how lawyers work, but also advancing how commercial and legal teams communicate.
“FT's own in-house legal team has chosen Wordsmith as its enterprise legal AI platform, providing the FT's business faster access to legal support,” she added.
Wordsmith said its revenue had grown 14 times year over year and that its client list had grown to more than 500 companies, including BT, Sage, Starling, Canva and Safelite. It added that its customers were seeing seven-figure savings in outside counsel spending during the first weeks of use.
The New York- and Edinburgh-based business was co-founded three years ago by McNairn, alongside COO Robbie Falkenthal and CTO Volodymyr Giginiak.
McNairn and Falkenthal previously collaborated at travel intelligence platform Perk, where, before launching Wordsmith, they were chief product and technology officer and VP of business operations, respectively.
Giginiak was previously principal software engineer for Instagram and prior to that spent nine years at Facebook, where he was a senior engineering manager. He also was a software engineer for Microsoft for just over five years.
Other legaltech start-ups to receive funding recently include US AI litigation platform Turbo Law, which secured $3.8m in a pre-seed funding round in June led by Turkish technology investment firm Revo Capital.
In May, London-based AI legaltech start-up Crimson, which was co-founded last year by former Willkie Farr & Gallagher associate Mark Feldner, also raised £2.5m in an oversubscribed seed funding round.
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