Covenant, an AI law firm designed for private market investors, announced it has raised $4 million in Seed funding. The round was led by Flybridge Capital Partners, with participation from Neil Barsky, a former hedge fund manager.
By integrating advanced AI with expert legal advice, Covenant aims to increase deal velocity and unlock data insights, delivering the same high-quality results as traditional law firms at a fraction of the cost. Since its pioneering launch in January 2024, top-tier endowments, foundations, fund of funds, sovereign wealth funds, and other allocators have relied on Covenant as the only AI solution capable of meeting their stringent accuracy, timing, and security standards.
Covenant utilizes multiple foundational AI models, eliminating dependence on any single model and ensuring clients benefit quickly and effortlessly from the latest AI developments. All AI-powered results undergo human verification, enabling clients to utilize this technology with complete confidence. Covenant maintains the highest standards of privacy and security through its SOC 2 Type II certification, guaranteeing responsible AI use with strict data protections: no training on client data, zero data retention, and anonymization of sensitive information.
Covenant’s Limited Partnership Agreement (LPA) review tool provides a robust summary within two business days, significantly outpacing other alternatives.
Covenant also announced the launch of the first AI-powered Most Favored Nation (MFN) election tool designed specifically for limited partners. With Covenant, the time it takes clients to analyze hundreds of pages is reduced from hours to minutes.
Over the past several months, Covenant has also rolled out several other tools specifically designed for private market investors, including fund manager due diligence and NDA first-draft markups.
KEY QUOTES:
“At Covenant, our goal is to empower private market investors to be radically smarter. We built a legal solution from the ground up. We have combined the capabilities of AI – moving faster, saving costs and simplifying complexity – with the skill of lawyers – deep industry knowledge, unparalleled attention to detail and clear judgment. This funding will enable us to deliver on our vision to modernize legal systems for the private markets.”
Jen Berrent, CEO and co-founder of Covenant and former WeWork COO and Chief Legal Officer
“Covenant is redefining legal infrastructure for institutional capital. As LPs face increasing complexity and compliance burden across their portfolios, the legal tech company is offering a unique AI solution that will fundamentally reshape how private market investors operate. I had the chance to work with Jen Berrent during the early days of WeWork Labs, where her legal expertise and commitment to founders stood out. That same clarity of vision is what makes Covenant such a powerful force for change in this industry.”
Jesse Middleton, General Partner at Flybridge Capital Partners
