Wordsmith has raised a $14 million extension to their June Series B round, led with new investment from Intact Private Capital, alongside existing investors Highland Europe and Index Ventures. FT Ventures has also become a shareholder in Wordsmith, they added.
This builds on the raise of $70m about two months ago. A spokesperson told AL: ‘Total capital raised by Wordsmith is $114m ($5m seed, $25m A, $70m B, now the $14m B extension). [And] we don’t disclose valuations.’
The additional investment follows a period of rapid growth for Wordsmith, with more than 500 clients, including BT, FT, Sage, Starling, Canva, and Safelite, they said.
As to what the extra cash is for, they said it will go towards ‘deepening Wordsmith’s presence in North America and strengthens its footprint in the financial services and insurance sectors’.
Ross McNairn, CEO and co-founder of Wordsmith, commented: ‘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.’
Is this a big deal?
Funding round extensions are not unusual, but it shows that investors are confident in Wordsmith’s growth and want a part of it – or more of it, if already there.
It also shows that the legal tech, or legal AI, market tends to focus on real uptake metrics, rather than respond to the bubble economics we see sometimes from those who invest in public markets. For example, LexisNexis reported very strong H1 results in July, despite traders being swayed by the ‘Claude Crash’ from earlier this year.
I.e. Uptake of legal AI tools is….real.
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Two Major Legal Innovators Conferences this November
Come and join us in New York and London this November at Legal Innovators!
Legal Innovators UK – London, Nov 4 and 5
And, then Legal Innovators New York – Nov 17 and 18.
After another fantastic Legal Innovators California, where we had speakers from OpenAI, Y Combinator, Google, Meta, and many more pioneering organisations; and our stellar inaugural event in Paris this June, we are now looking forward to the landmark conferences in London and New York, both in November, and both across two days: Law Firm Day, and Inhouse Day.
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