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Edinburgh-based legal technology startup Wordsmith AI has raised $25m in a Series A funding round. Its GenAI-led solution helps in-house legal teams service contract reviews, create template drafts and provide policy guidance. This latest round of funding brings the startups valuation to above $100m, making it one of the fastest-growing tech startups to emerge from Scotland’s tech ecosystem.
Wordsmith was founded in 2023, and already counts firms such as Trustpilot, Remote.com, Deliveroo, Multiverse, and Docplanner among its customer base. To support its growth Wordsmith plans to open new offices in London and New York later this year. The company’s platform helps in-house business legal teams automate contract and policy reviews with the productivity tools they have and extract legal insights from past work.
It does this by applying agentic AI and a chatbot that can answer questions or work within Microsoft Word via a plugin. Legal professionals can quickly and easily take a contract or policy document and pass it over to Wordsmith’s AI agent which will process it for review. The AI will adapt to the businesses’ custom playbook, risks and negotiation style, to highlight deviations and note them for review so that legal can update them in the document. The document review process can handle a multitude of agreement types out-of-the-box, including non-disclosure agreements, data processing agreements, software-as-a-service agreements, terms of service and recruitment services agreements, with more coming soon.
The market for legal tech remains highly crowded, established players and law firms of all sizes are rapidly incorporating AI capabilities, and this has spawned numerous startups looking to capitalise. Others who have raised funding in the past 6 months include; Atria AI which is focused on the often overlooked area of deadline and obligation management (See here), Semeris, who is targeting legal documents in the capital markets industry (See here) and Luminance, who has developed its own legal Large Language Model (LLM) (See here).
Beyond these there are numerous others, both startups and more established legal tech firms including; Robin AI (See - Robin AI raises $26m in new funding round), London based Genie AI (see - Legal AI tech startup Genie AI raises £13.3m), and heavy hitters like global legal solutions firm LexisNexis, who has also developed its own AI based legal solution. This is a hot market and one we will be going into deeper later this year, so stay tuned.
Posted by: Simon Baxter at 09:24
Tags:
legaltech