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LegalOn raises $50 million for AI contract review expansion

LegalOn, backed by SoftBank, secures $50 million to enhance its AI-powered contract review software.

July 24, 2025 at 01:00 PM

SoftBank-backed LegalOn lands $50M to streamline legal workflows with AI

LegalOn has raised $50 million in Series C funding to further its AI contract review solutions.

LegalOn secures $50 million to enhance AI-driven contract review

LegalOn Technologies, a Japanese startup providing AI-powered contract review software, has announced a successful Series C funding round raising $50 million. This new capital is expected to accelerate the development of its AI agent tools, enhancing legal workflows specifically in contract review. LegalOn's platform is currently utilized by 7,000 organizations globally, including 25% of Japan's public companies. The funding round is led by Goldman Sachs, with participation from several notable investors including World Innovation Lab and Mizuho Bank. LegalOn aims to further reinforce its presence in the U.S. and U.K. markets where business has seen significant growth. The startup claims its technology reduces contract review time by up to 85% while improving quality.

Key Takeaways

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LegalOn raised $50 million to enhance its AI contract review capabilities.

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The platform is used by 7,000 organizations across various countries.

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Significant growth recorded in U.S. and U.K. markets with quadrupling business.

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AI technology claiming to cut review time by up to 85%.

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The company seeks to create more AI tools while focusing on legal expertise.

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Legal professionals are still vital in overseeing AI outputs, according to the CEO.

"Our approach ensures contract reviews are aligned with real legal standards, making the output more accurate, consistent, and practical."

Daniel Lewis, CEO of LegalOn, explains how their methodology differs from competitors.

"The things AI can’t do perfectly today are, by definition, the things only people can do."

Lewis articulates the ongoing necessity of human lawyers alongside AI tools.

LegalOn's recent funding marks a significant development in the evolving legal tech landscape. The emphasis on utilizing AI for contract management aligns with the global trend where efficiency and precision are paramount for legal teams. LegalOn's approach, combining attorney-authorized content with advanced AI technologies, offers a unique position in a crowded market. As generative AI continues to reshape various sectors, LegalOn's model of aiding rather than replacing legal professionals reflects cautious optimism about the integration of technology in law. This adaptive strategy could set a precedent for how legal tech firms operate moving forward.

Highlights

LegalOn combines expert legal content with cutting-edge AI.
AI revolutionizes contracting, but lawyers still hold the reins.
LegalOn sees growth fueled by AI, not at the cost of lawyers.
In twenty-first-century law, tech enhances human oversight.

Funding raises concerns about market competition

As LegalOn secures significant funding, it may intensify competition among legal tech startups, resulting in potential market volatility.

As AI continues to reshape legal processes, LegalOn's growth illustrates a balancing act between innovation and the irreplaceable value of human oversight.

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legaltech startups ai contractmanagement investment technology business law

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