LegalOn Technologies raises $50 million to further develop AI contract review software

LegalOn Technologies, a Tokyo-based company, has been making significant strides in the legal tech industry with its AI contract review software, Review. The software, used by 7,000 organizations across Japan, the U.S., and the U.K., has captured 25% of the Japanese market. Review identifies risks and suggests edits based on playbooks built by lawyers, significantly reducing review times and improving accuracy.

Recently, the company secured $50 million in a Series C funding round led by Goldman Sachs’ growth equity fund, with participation from existing and new investors. The funding will support the development of AI agent tools and enhance the company's presence in the U.S. and U.K. markets. LegalOn, founded by former corporate lawyers Nozomu Tsunoda and Masataka Ogasawara, aims to streamline time-consuming legal tasks before and after the contract review process, such as automating contract management. The company differentiates itself from other legal tech startups by leveraging attorney-drafted playbooks, ensuring alignment with real legal standards.

Additionally, LegalOn launched a new tool, Matter Management, and established a tech partnership with OpenAI to access advanced language models for further innovation. Despite the significant advancements in AI within the legal industry, LegalOn emphasizes that AI is meant to complement, not replace, lawyers. The Series C funding brings LegalOn’s total capital raised to over $200 million, with notable investors including SoftBank Vision Fund and MUFG Bank.