Funding to legal tech startups has hit a record high in 2025, driven by investor enthusiasm for AI’s potential to bring more automation to the legal profession.
Per Crunchbase data, companies in the legal and legal technology sectors have raised jus...
Funding to legal tech startups has hit a record high in 2025, driven by investor enthusiasm for AI’s potential to bring more automation to the legal profession.
Per Crunchbase data, companies in the legal and legal technology sectors have raised just over $2.4 billion so far in 2025 in seed through growth-stage funding. With over three months left in the year, it’s already the highest annual total on record.
Filevine snags $400M
A giant funding announcement this week played a big role in pushing the totals higher. Filevine, a provider of legal practice management software, announced Tuesday that it closed on two previously undisclosed rounds totaling $400 million 1. Insight Partners led the first round and joined Accel and Halo Experience Co. to co-lead the second.
Founded in 2014, Salt Lake City-based Filevine has expanded its platform over the years to cover more tasks for legal practices. Use cases touted on its website include time tracking, billing, case management software and secure document management, among others.
Filevine plans to use the funds in part to continue expanding its AI capabilities. The company said it counts nearly 6,000 customers and 100,000 users.
Other big fundraisers, and plenty of seed deals too
Several other startups have also closed on sizable funding this year, including:
Notably, however, the boom in legal tech venture funding isn’t only about big rounds for prominent unicorns. The intersection of AI and legal work is one of the more active areas for seed funding, a trend we first observed last year and that has continued into 2025 as well.
Nothing mysterious here
For those seeking an explanation for why legal tech funding is on the rise, there is an obvious one that comes to the fore.
In essence: Much legal work is boring and repetitive, which makes it well-suited to offload more tasks to AI. In fact, among all professions impacted by artificial intelligence, legal work is expected to be one of the most affected by automation.
In one oft-cited Goldman Sachs report, analysts estimated that an astounding 44% of legal work could eventually be automated. AI-enabled software will be taking on much of this workload.
On another side note, in addition to being repetitive, legal work also tends to be expensive, as anyone who has hired a lawyer can probably attest. While it remains to be seen whether AI will reduce the cost of legal services, it should at least free up time for lawyers and support staff to put their billable hours to the most productive use.
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Illustration: Dom Guzman
