Spellbook, a platform often referred to as “Cursor for contracts,” announced it has completed a $50 million Series B funding round. Keith Rabois, the Managing Director at Khosla Ventures, led this round. This funding round also saw participation from Threshold Ventures, along with existing investors such as Inovia Capital, Bling Capital, Moxxie Ventures, Path Ventures, and Jean-Michel Lemieux. The funding values Spellbook at $350 million post-money, bringing the total funding the company has received to over $80 million.
This funding comes at a significant time for Spellbook, as it has recently surpassed the milestone of 10 million contracts reviewed on its platform. Its clientele includes high-profile companies like Nestlé, eBay, and Kennedys, demonstrating the platform’s robust appeal in the legal industry.
To triple its revenue this year, Spellbook has positioned itself as the leading AI solution designed for transactional lawyers. Nearly 4,000 law firms and in-house legal teams across 80 countries are currently utilizing the service, outpacing any other AI contract review product in the market.
The new funding will play a crucial role in Spellbook’s strategy to broaden its offerings beyond contract review. The company aims to expand into the complete spectrum of transactional work, which will allow it to capture more of the substantial $1 trillion market for transactional legal services. Additionally, the investment will help scale its go-to-market teams, increasing their capacity to engage potential clients and drive growth effectively. Spellbook is set to enhance its AI capabilities, focusing on deeper contract intelligence that leverages real-time market data.
One of the key advantages that Spellbook offers over its competitors is its ease of integration. Many legal tech solutions require extensive and time-consuming implementation processes, often lasting several months. In contrast, Spellbook functions instantly within existing workflows, allowing users to work directly in familiar environments like Microsoft Word. This capability provides immediate value to legal professionals without the disruption of adopting a new system.
Lawyers have often expressed dissatisfaction with the contract review outputs from other AI tools, which can be unreliable and so vague that they dismissively refer to them as “AI slop.” To succeed in negotiations, lawyers need data-driven insights that they can confidently cite in discussions. With this latest round of funding, Spellbook is committed to building the most data-driven contract review tool available. The platform aims to deliver relevant and substantive suggestions based on real-time market data, lawyer preferences, and historical deal information.
To achieve this vision, Spellbook has begun rolling out new features, including Market Comparison and Preference Learning, which are currently in beta testing. These tools are designed to provide users with insights into market trends and preferences in contract terms, enhancing the overall user experience. Additionally, the company is investing in Spellbook Associate, a pioneering AI agent capable of handling multi-document transactional drafting. This feature aims to streamline the contract drafting process for legal professionals, making it more efficient and effective.
KEY QUOTES:
“We’re at the spreadsheet moment for lawyers. Just as spreadsheets transformed accounting, large language models are transforming law after 20 years of technological stagnation. With $30 trillion running through contracts annually in the U.S. alone, even small efficiency gains create massive value. This funding accelerates our mission to make contracts move at the speed of commerce.”
“We think Cursor has been so successful because it’s like an electric bicycle for engineers. They already had a bicycle – with Cursor they are still pedalling and still steering, but they can get up hills much faster. We have the same philosophy at Spellbook. We don’t require lawyers to totally change how they work, or to give up control. We just help them ascend hills faster.”
Scott Stevenson, CEO and co-founder of Spellbook
“Spellbook is using technology to make law faster, better, and more transparent. It’s the Shopify and Square democratization story for lawyers.”
Keith Rabois, Managing Director of Khosla Ventures, who will join Spellbook’s board of directors
