AI-powered legaltech startup Spellbook has raised $50 million USD in a Series B round led by Khosla Ventures, valuing the company at $350 million USD.
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.
Keith Rabois, Managing Director at Khosla Ventures, led the investment and will join Spellbook’s board of directors.
Scaling AI-powered legal workflows
Founded in 2018 in St. John’s, Newfoundland and Labrador, as Rally, Spellbook describes itself as an AI co-pilot for lawyers — or a “Cursor for contracts.” Its platform integrates directly with Microsoft Word, helping legal teams draft, review, and negotiate contracts faster using real-time, context-aware AI.
The company claims its system has reviewed more than 10 million contracts for nearly 4,000 customers in 80 countries, including Nestlé, eBay, and Kennedys Law.
With the new capital, the company plans to expand beyond contract review, double its workforce from 115 to 230 employees, and scale its go-to-market efforts globally. CEO Scott Stevenson said the company expects to triple revenue in 2025 and is exploring debt financing for future acquisitions amid growing legaltech consolidation.
“Every six months, we can do new things we couldn’t before,” said Stevenson. “The level of agility needed in this market is unlike ever before — and our goal is to make law faster, better, and more transparent.”
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“The Shopify and Square story for lawyers”
Keith Rabois described Spellbook’s mission as democratizing access to legal tools in the same way Shopify and Square did for commerce and payments:
“Spellbook is using technology to make law faster, better, and more transparent. It’s the Shopify and Square democratization story for lawyers.”
The company’s valuation has surged to $350 million USD, with over $80 million USD raised to date. Its last round — a $20 million USD Series A led by Inovia Capital — closed in January 2024.
From contract review to “high-frequency legal software”
Spellbook is rapidly evolving its product lineup, recently introducing an AI agent to automate legal workflows. Stevenson envisions the platform as the world’s first “high-frequency software”, drawing an analogy to financial markets:
“AI is transforming software the way electronic trading transformed finance — moving from slow manual processes to high-frequency automation.”
About Spellbook
Spellbook develops an AI-powered platform that helps lawyers draft and review contracts inside Microsoft Word. Using advanced language models, it provides contextual, data-driven suggestions that streamline contract workflows and reduce risk.
With backing from Khosla Ventures, Inovia Capital, and other top-tier investors, Spellbook is on a mission to modernize the $800B global legal industry through AI-driven productivity and transparency.
