PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

AI-based legal research firm Casetext closes USD12m in funding

In one of the largest investments in the legal tech industry to date, Casetext, which provides artificial intelligence (AI)-based legal research technology for lawyers, has closed on a USD12 million Series B funding round.

Canvas Ventures, a firm whose partners have previously invested in technology powerhouses Siri and Evernote, led the investment with participation from prior investors Union Square Ventures, 8VC, and Red Sea Ventures, among others.
 
Casetext officials say they will use the new funding to further develop the capabilities of its software platform, accelerate team growth, and expand the capabilities of CARA (its Case Analysis Research Assistant), the first automated research assistant for lawyers.
 
Through Casetext’s innovations, including CARA, the San Francisco-based company is addressing the USD21 billion market for legal and regulatory information, according to Rebecca Lynn, general partner at Canvas Ventures.
 
“Having been a lawyer before becoming a venture capitalist, I can say with confidence the speed and scale of Casetext’s disruption of the legal research industry is profound,” says Lynn. “I think Casetext will be indispensable for lawyers, from associates to partners. Litigation is a battle and CARA is a lawyer’s best weapon. In addition, Casetext is the only company providing AI-powered legal research that is widely available today.”
 
In addition to Canvas’s investment in CrowdFlower, the team also led investments prior to forming Canvas in Siri, Evernote, and Nuance while serving as partners at Morgenthaler Ventures.
 
Casetext recently announced partnerships with law firm customers Quinn Emanuel, Fenwick & West, DLA Piper, Ogletree Deakins and Greenberg Traurig, all of which are using the company’s automated research assistant CARA.
 
CARA uses AI and natural-language technologies to automate key legal research tasks, arming lawyers with the highest quality research possible, ultimately allowing firms to spend time on higher-value, billable work—and not miss key precedents or decisions. Because CARA is powered by the Casetext research database, users have access to a full library of federal and state law, annotated by expert analysis from leading attorneys and law firms.
 
“CARA is an invaluable, innovative research tool,” says David Eiseman, partner at Quinn Emanuel. “With CARA, we can upload a brief and within seconds receive additional case law suggestions and relevant information on how cases have been used in the past, all in a user-friendly interface. This feature is unique to CARA, and a major step forward in how legal research is done.”
 
Casetext was founded by Heller in 2013, who was later joined by Pablo Arredondo, vice president of legal research. Laura Safdie, COO and general counsel, joined Casetext in 2014.
 
“We are grateful for the enthusiastic market reception and the support of Canvas Ventures,” says Safdie. “The Canvas team has a history with AI and machine-learning companies Siri, Nuance, and CrowdFlower. We believe that knowledge will help us accelerate our mission to make the law more accessible and affordable for legal professionals.”

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured