Spellbook, an AI copilot platform for contracts, announced it has secured $40 million in debt financing from RBCx, the technology and innovation banking arm of Royal Bank of Canada, to support strategic acquisitions as the legal AI sector undergoes consolidation.
The financing follows the company’s $50 million Series B round announced two months earlier, which valued the company at $350 million post-money. Spellbook said the new capital will enable it to pursue acquisitions of complementary technologies and expand its position in the growing legal AI market.
Founded in 2022, Spellbook developed what it describes as the first generative AI tool designed specifically for lawyers. The platform assists legal teams with drafting, reviewing, and negotiating contracts using large language models and legal-specific data analysis.
The company now serves nearly 4,000 law firms and in-house legal teams across 80 countries. Its customer base includes organizations such as Nestlé, eBay, and the law firm Kennedys.
Spellbook said the debt facility positions the company to capitalize on consolidation in the legal AI sector, where smaller startups are increasingly seeking exits. The company also plans to expand its data-driven infrastructure to improve contract analysis and negotiation workflows.
The announcement comes after a milestone year for Spellbook in 2025, during which the company tripled its revenue and launched new product capabilities, including its Compare to Market feature, which analyzes deal terms based on data from hundreds of thousands of contracts.
RBCx said the financing reflects its strategy of supporting high-growth technology companies in Canada and globally. Through its banking, capital, platform, and venture offerings, the organization provides financial services and resources designed for technology startups and scaling companies.
Spellbook is backed by investors including Khosla Ventures, Thomson Reuters Ventures, Inovia Capital, The Legaltech Fund, Bling Capital, and Moxxie Ventures.
KEY QUOTES
“The legal AI market has matured exceptionally fast, and we’re seeing consolidation accelerate. We hear from a small legal AI company every few weeks looking for an exit. It’s become increasingly difficult for new entrants to gain a foothold in this space.” “Our early market entry and proven traction with thousands of firms positions us perfectly to lead this consolidation while expanding into adjacent offerings.”
Scott Stevenson, CEO And Co-Founder, Spellbook
“As the legal tech sector rapidly evolves, RBCx is proud to support companies like Spellbook that have demonstrated clear market leadership and the vision to shape the industry’s future.”
Tony Barkett, Head, Banking, RBCx
