LawGeex, the legal AI pioneer in contract review has today announced that it has closed a $12m funding round led by venture capital fund, Aleph.
The investment brings LawGeex’s total funding to date to $21.5m. Previous investors, including Lool Ventures, also participated in this round.
The additional capital will be used by LawGeex to ‘fortify its position…deepen its product offering, and expand its US presence following the opening of its New York office earlier this year’ said the Tel Aviv-based company.
Aleph partner, Eden Shochat, told Artificial Lawyer why they had so resoundingly backed legal AI company, LawGeex: ‘We invest in industries that are going through transformation. Every industry [eventually] goes through a transformation. It’s unavoidable.’
‘And is change needed in the legal sector? Yes. Forward thinking General Counsel are looking at efficiency,’ he added.
Shochat gave the example of the need for greater speed in the review of documents so that business could move forward. He noted the example of where his fund has to wait while multiple NDAs are reviewed by a human lawyer, slowing down deals, and in some cases where there are multiple bids for a target, even putting the whole transaction at risk.
Using a system such as LawGeex allows inhouse lawyers to very quickly review standard documents and allow their business to move forward.
Shochat explained that he sees technology such as LawGeex acting ‘as an exoskeleton for lawyers’ that makes them more capable and more efficient. I.e. it doesn’t replace lawyers, but augments them.
Noory Bechor, co-founder and CEO of LawGeex, echoed this view: ‘We help businesses run faster and better by automatically answering one simple question: ‘Can I sign this?’.’
‘Customers who once waited weeks to get a simple contract approved can now complete the entire review and approval process in under sixty minutes. Legal teams can finally focus on the big picture instead of getting lost in paperwork,’ he added.
In February, LawGeex revealed that its AI bested top US lawyers in accurately spotting risks in everyday business contracts. The study, carried out in collaboration with top academics at leading universities, saw the LawGeex AI achieve an accuracy of 94%, while the lawyers achieved an average of 85%. It took 92 minutes for the lawyer participants to complete a review of five sample NDAs, compared to only 26 seconds for the LawGeex AI.
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