St. John's-based LegalTech has reached a $350 million valuation.
Toronto-based legal tech startup Book of Spellswhich provides lawyers with an artificial intelligence (AI)-powered contract review platform, has received US$50 million ($69.9 million CAD) in Series B funding.
“The level of flexibility that needs to be in this market is extremely high and unlike anything before.”
Scott Stevenson, Book of Spells
The all-equity round was led by one of Silicon Valley's most prominent venture capital firms, Khosla Ventures, under the leadership of Managing Director Keith Rabois, who will join Spellbook's board of directors. The round also included participation from Threshold Ventures and returning investors Inovia Capital, Bling Capital, Moxxie Ventures, Path Ventures and former Shopify CTO Jean-Michel Lemieux.
The new funding will help expand Spellbook's tool beyond contract review and expand its go-to-market team, the company said in a statement. Spellbook CEO Scott Stevenson told BetaKit that Spellbook will grow its team from 115 to 230 employees over the next one to two years. He added that the company will likely raise debt for acquisitions in the future as it anticipates industry consolidation.
Spellbook said its platform has reviewed more than 10 million contracts from nearly 4,000 clients in 80 countries, including Nestlé, eBay and Kennedys Law. The company said its revenue will triple this year, but Stevenson did not give an exact figure.
“Spellbook uses technology to make the law faster, better and more transparent,” Rabois said in a statement. “This is the story of the democratization of Shopify and Square for lawyers.”
The new capital brings Spellbook's post-investment valuation to US$350 million. To date, Spellbook has raised over US$80 million. The startup last raised US$20 million ($27 million CAD) in Series A fundingled by Inovia, in January 2024.
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Spellbook, founded in 2018 as Rally and based in St. John's, NL, calls itself “the co-pilot of artificial intelligence for lawyers” (or “Cursor for Contracts”), which helps legal practitioners review and draft contracts through integration with Microsoft Word. Spellbook says its platform delivers “relevant and meaningful suggestions” based on real-time data rather than so-called “AI slop.” Hundreds of lawyers were caught using artificial intelligence tools after their work was exposed in false court cases.
Spellbook frequently updates its features, such as a new AI agent to automate workflows. Stevenson said Spellbook aims to become the world's first “high-frequency software,” comparing the impact of artificial intelligence on software to the stock market, which is moving from slow stock trading to electronic trading to high-frequency hedge funds making thousands of trades a day.
“Every six months we can do something new that we couldn't do before. It's a completely different way of thinking,” Stevenson said. “The level of flexibility that needs to be in this market is extremely high and unlike anything before.”
Image courtesy of Spellbook.
