Venture capital (VC) continues to believe in the power of AI in the legal industry. AI-driven contract analysis platform LexCheck announced in mid-December that it’s secured USD 17 million in Series A funding. California-based global VC Mayfield Fund led the round.
LexCheck was founded in 2015 by University of Pennsylvania law lecturer Gary Sangha, who is also a CodeX Fellow at the Stanford Center for Legal Informatics. Early in his career, Sangha practiced law at Shearman & Sterling and White & Case, and during this time he felt driven to launch a legal tech start-up to help lawyers standardize the contract review process.
The company has been growing ever since, acquiring clients across 14 industries — including the financial, tech and legal sectors. In March 2022, LexCheck raised USD 5 million in funding, after raising USD 3 million in seed funding in May 2020. Prior to that, LexCheck had been bootstrapped since its launch.
LexCheck uses AI and natural language processing to help lawyers edit and negotiate contracts. Its system features digital playbooks containing data that the software uses to automate the contract review process, providing edits, comments and insertions in contracts, along with alerts of any anomalies. LexCheck offers a pre-made set of standardized playbooks, readily available to new users, while users can also add their own customized playbooks. LexCheck claims that between 24 and 50 sample documents are enough to train the software to efficiently perform contract analysis in a new legal field.
LexCheck plans to use its latest funding to improve the user experience and boost its sales and marketing activities.