While many big law firm AI projects have been put on hold, a raft of funding round announcements this week go to show that private equity money is flowing for the right investments. This is where they think you will be spending your cash.
SirionLabs Raises $44M Series C for CLM Platform
AI-powered contract lifecycle management (CLM) platform SirionLabs has raised a $44M Series C Round led by Tiger Global and Avatar Growth Capital. The round brings SirionLabs’ total capital raised to $66M to date, with earlier rounds led by Sequoia Capital India.
With this funding round, SirionLabs says it will continue to strengthen its leadership in the CLM category: with 4x customer growth in the past 18 months; doubling its revenue YOY for the past 3 years; being recognized as a Visionary in Gartner’s 2020 CLM Magic Quadrant and the top-ranked CLM in Spend Matters’ SolutionMap six times in a row.
The company also announced the launch of its new Seattle-based Technology Center and the growth of its leadership team with the appointment of Amol Joshi as Chief Revenue Officer, Anu Engineer as Chief Technology Officer, Mahesh Unnikrishnan as Chief Product Officer and Vijay Khera as Chief Customer Officer.
The Sirion Network hosts contracts in over 40 languages for more than 200 of the world’s largest companies including Vodafone, Unilever, BP, EY, Fujitsu, Credit Suisse and Abbvie.
“SirionCLM’s permissioned ledger architecture does away with analog contracting processes which are adversarial in nature and instead creates a level playing field that gives all companies, whether buyers or sellers, an opportunity to collaborate and leverage a single-source of truth in realizing the business outcomes embedded in contracts,” said Ajay Agrawal, Co-founder, Chairman and CEO of SirionLabs. “I am delighted to welcome Tiger Global and Avatar Growth Capital as our latest investors. It is a strong vote of confidence in our vision to revolutionize contracting.”
“Complex services represent a multi-trillion global market but contracting and governance continue to be cumbersome manual processes. SirionLabs has spent several years in developing proprietary AI-enabled performance and invoice reconciliation capabilities to address these inefficiencies head-on,” said Vishal Bakshi, Founder and Managing Partner at Avatar Growth Capital. “Pioneering a two-sided, international marketplace creates benefits for both enterprise clients and service providers, and with it the potential for SirionLabs to capture massive network effects as the platform continues to scale. It’s exciting to support Ajay and his team on this journey.”
LawGeex closes $20m funding round
LawGeex this week closed a $20 million round of financing. LawGeex is a pioneer in automating the review of contracts to accelerate deal closure.
Corner Ventures, a Palo Alto, CA based venture capital fund focused on investments in leading growth stage technology companies led the round, with participation from La Maison and the continued support of existing investors Aleph, lool Ventures and former Thomson Reuters CEO, Tom Glocer.
“We saw in LawGeex a rare opportunity to invest in a company with an exceptional customer roster at the cusp of stellar growth,” said Marvin Tien, Managing Director at Corner Ventures. “LawGeex is seeing high demand for its solution and even further acceleration due to the flexibility, cost efficiencies, and safety-net afforded by digital automation during this challenging time.”
“Contract Review Automation is fundamentally changing how we work, helping us be more impactful,” said Cory Sumsion, Director, Commercial Counsel at eBay.
LawGeex tripled its growth in the last year and counts over forty Global 2000 companies as customers, including HP and GE, as well as leading law firms such as White & Case. Many Fortune 500 companies, including three of the top five insurance companies, have standardized on LawGeex for pre-signature contract review.
This round of funding will be used to support the strong demand for the LawGeex solution by increasing its customer success team. In addition, LawGeex plans to grow its product offering via additional use cases, accelerate growth in various markets by widening the company’s sales footprint, and identify potential partnership opportunities.
LawGeex has now raised a total of $45 million in funding, making it one of the most well-funded Legal AI companies in the world.
Qorus raises $5m led by WestRiver
Qorus, one of the world’s premier sales enablement and proposal management platforms for remotely based proposal management teams recently announced it has completed a $5 million round of financing led by WestRiver Group as it increases its focus on the legal industry.
In the technology sector, more than 4,000 users within the Microsoft Partner Network leverage Qorus to accelerate sales efforts. In addition to technology, another growth market is Legal, with Qorus delivering its Qorus Content Hub sales enablement platform to 10 of the 2019 Am Law 100 firms including Alston & Bird, Baker McKenzie, Hogan Lovells, Jones Day, Littler and Seyfarth Shaw.
“Having the financial support and expertise of WestRiver Group accelerates the execution of our legal market strategy,” said Qorus Chief Executive Officer Ray Meiring. “By adding industry expertise to our legal team and aggressively pursuing legal technology partnerships uniquely focused on benefiting our impressive Am Law client base, we can insure long term viability.”
According to a Marketing Technology Mini White Paper published by ILTA in 2019, 60+ percent of member law firms surveyed on their use of marketing technology do not currently use a proposal automation system.
Malbek closes $3m funding round
And it’s another CLM funding round story as Malbek, a cloud-based provider of contract lifecycle management (CLM) software, announced this week that it has closed $3 million in funding led by Philadelphia-area venture capital firm, Osage Venture Partners. The company claims that a staggering 85 percent of enterprises lack an effective contract lifecycle management solution. And says that for the typical organization, contract management pitfalls, like missed contract milestones, erode 9.2 percent of revenue annually.
“The Malbek solution solves the real-world contract management problems of organizations of all sizes,” says Nate Lentz, Managing Partner at Osage Venture Partners. “One of the things that attracted us to them was how the Malbek team has evolved the company in such a short time through amazing partnerships and strong customer relationships.”
“It’s a true honor to be part of the Osage Venture Partners family,” says Hemanth Puttaswamy, Co-founder and CEO of Malbek. “The emphasis they place on collaborative company culture resonated profoundly with us. We have been a very disciplined team, innovating at a breakneck pace and signing numerous customers in the last few months alone. This capital will help us accelerate to the next level of growth.”
With the additional capital Malbek plans to continue to invest in product innovation, including AI and advanced technologies; grow sales and marketing to reach an even larger market; and invest in the customer experience team to meet the growing needs of its customer base.
LexCheck raises $3m in seed funding
LexCheck, an artificial intelligence (AI) contracting platform based in New York City, has completed a $3 million Series Seed round of financing. Bootstrapped since its founding in 2015, this is LexCheck’s first venture round. The round was led by Kli Capital (formerly known as BNSG Capital) and included Howard Morgan (retired co-founder of First Round Capital) and Vivek Garipalli (co-founder and CEO of Clover Health), among other distinguished investors.
“Despite the instability of the current economic climate, LexCheck continues to grow and solidify itself as a force in the legal technology sector and the enterprise software space generally,” said Shmuel Gniwisch, co-founder of Kli Capital. “Kli Capital believes that LexCheck’s growth will accelerate rapidly due to the changing needs of large enterprises attempting to overcome the obstacles presented by this global health crisis.”
Led by serial entrepreneur Gurinder “Gary” Sangha (founder and CEO), who also participated in the round, LexCheck applies AI technology to help their customers, including leading Fortune 500 companies, accelerate and automate contract negotiations.
“Successfully challenging the status quo and creating legal technologies that transform organizations have been the driving principles over the course of my career and remain our core tenets at LexCheck,” said Sangha. “With the help of our investors, we can accelerate our work and transform this sector even more swiftly and comprehensively.”