London-based legal tech startup Lawhive has successfully raised $40 million in its Series A funding round, marking a significant milestone in an already record-setting year for venture capital in the legal technology sector. The round, led by GV and TQ Ventures, follows a £9.5 million seed funding round completed just seven months ago, which was also backed by GV and Episode 1 Ventures. While the company’s latest valuation has not been disclosed, it was valued at $63.5 million in April 2024.
Founded in 2019, Lawhive leverages artificial intelligence to automate both administrative and legal tasks for lawyers through its AI-powered product, Lawrence. This funding is part of the company’s broader strategy to expand its services into the U.S. market, where consumer legal needs remain vastly underserved. According to the American Bar Association, 80% of U.S. consumers face unmet legal needs, with the legal market valued at an estimated $1 trillion annually.
Schuster Tanger, co-managing partner at TQ Ventures, highlighted the enormous potential for disruption in the U.S. legal market. “The U.S. legal market, arguably the largest in the world, is ripe for disruption,” Tanger said. “The pressing need for affordable legal access makes it the perfect environment for innovative tech solutions like Lawhive’s.”
The legal tech sector has seen remarkable growth in recent months, driven largely by advancements in AI technology. In July 2024, Canadian legal tech firm Clio raised $900 million in a round led by NEA at a $3 billion valuation, while U.S.-based startup Harvey closed a $100 million Series C round, also led by GV. Legal tech VC funding has surged globally, reaching a record-breaking $2.7 billion in 2024, a 170% increase from 2023, according to PitchBook data.
The U.S. continues to dominate in terms of legal tech deals, but Europe has also experienced a significant uptick in investor interest. In 2024 alone, European legal tech startups have raised $322.1 million, marking the second-highest funding year on record and a 51% increase from 2023.
Lawhive’s $40 million Series A aligns with the region’s largest legal tech VC deals this year, alongside London-based Luminance’s $40 million Series B. With this funding, Lawhive aims to capitalize on the growing demand for affordable, technology-driven legal services in the U.S. market, which holds significant promise for the future of legal tech.
Reference:
Leah Hodgson. (2024). Lawhive’s $40M Series A adds to legal tech’s record VC year. PitchBook. Retrieved from https://pitchbook.com/news/articles/lawhives-40m-series-a-adds-to-legal-techs-record-vc-year
