LegalOn Secures $50M Series E Funding to Advance AI-Powered Legal Tech

LegalOn Secures $50M in Series E Funding

LegalOn Technologies, a legal tech startup headquartered in Tokyo and San Francisco, has successfully raised $50 million in a Series E funding round. The investment was led by Growth Equity at Goldman Sachs Alternatives, with participation from existing investor World Innovation Lab (WiL) and new investors including Mori Hamada & Matsumoto, Mizuho Bank, and Shoko Chukin Bank 1

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Company Background and Growth

Founded in 2017 by former corporate lawyers Nozomu Tsunoda and Masataka Ogasawara, LegalOn has grown to serve over 7,000 organizations across Japan, the U.S., and the U.K. The company claims to lead the Japanese market, supporting 25% of all public companies in the country 1

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. Since its inception, LegalOn has raised a total of $200 million, with its business quadrupling in the U.S. and U.K. over the past year 1

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AI-Powered Legal Solutions

LegalOn's flagship product, Review, is an AI-powered contract review tool that identifies risks and suggests edits based on attorney-built playbooks and enterprise-specific legal standards. The company claims this tool can reduce review time by up to 85% while improving quality and accuracy 1

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. In addition to Review, LegalOn recently launched Matter Management, a tool designed to streamline legal request tracking and collaboration across departments 1

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OpenAI Partnership and Future Development

Alongside the funding announcement, LegalOn revealed a non-equity tech partnership with OpenAI. This collaboration provides LegalOn with access to OpenAI's advanced models, accelerating product development. Engineers from both companies are working together to develop advanced legal AI agents that are more adaptable and intuitive for global legal teams 1

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Market Position and Differentiation

Daniel Lewis, Global CEO of LegalOn, emphasized the company's unique approach, stating, "Our approach ensures contract reviews are aligned with real legal standards, making the output more accurate, consistent, and practical for legal teams" 1

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. LegalOn's foundation in attorney-drafted expert legal content sets it apart from competitors that rely on user-built rules or generic AI models 1

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Investor Perspective

Stephanie Hui, global co-head of Growth Equity at Goldman Sachs Alternatives, expressed confidence in LegalOn's potential, saying, "By combining advanced AI with deep legal expertise, LegalOn is reinventing the contracting process and empowering legal departments to work faster and more strategically" 2

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The Role of AI in Legal Practice

While AI is transforming the legal industry, Lewis clarified that it is not intended to replace lawyers. "The state of the technology isn't there yet, and replacing lawyers isn't even our vision," he stated. Instead, LegalOn aims to enhance lawyers' capabilities, allowing them to focus on high-value tasks that require human judgment and expertise 1

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Future Plans

LegalOn plans to use the new funding to scale its agentic AI product development and enhance go-to-market efforts, particularly in the U.S. and U.K. markets. The company is also expanding beyond contract review, with plans to launch AI agents supporting legal teams from request to resolution by 2025 1

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