Lexion is on a roll.
The Seattle startup that helps legal teams use artificial intelligence to examine contracts has quadrupled revenue and added 50 clients in the past four months, including brands like Outreach, Blue Nile, OfferUp and others.
Now the company is raising more cash to drive growth, announcing an $ 11 million Series A round led by Khosla Ventures. It is one of the few Seattle-area startups to get funding from Khosla, a leading Silicon Valley startup that has backed giants like DoorDash, Okta, Opendoor, Square, and others, including OpenAI.
Lexion, which grew out of the Allen Institute for Artificial Intelligence in Seattle, uses algorithms to automatically analyze contracts and display relevant information. Produces an organized search repository and various reports.
The idea is to help legal teams currently using a hodgepodge of tools like Dropbox and Excel. Lexion can quickly answer questions on its platform or within other applications such as Slack or Salesforce about whether a contract is active or has termination clauses, for example.
The 30-person company is part of a fast-growing segment called contract lifecycle management (CLM) systems that includes heavy hitters like the Seattle-area unicorn Icertis and several others.
Lexion focuses on small, mid-market companies that have a handful of legal experts whose time would be better off spending more than reading documents. Lexion’s simplicity, fast onboarding process and next-generation natural language processing technology give it an edge over its competitors, according to the CEO. Gaurav oberoi.
“It will allow attorneys to do what they thought they would do upon graduation from law school, as opposed to a lot of the menial and administrative tasks that end up taking up a large chunk of their time week after week,” said Lexion CEO. . Gaurav oberoi.
Lexion plans to use fresh cash to go beyond reporting and into workflow, helping companies simplify the way contracts are approved and providing a dashboard that allows legal teams to manage the process.
“This combination of cutting-edge technology, with a simple and practical application, is exactly how the value of AI will be realized in corporations, and that is why we believe that Lexion has a winning advantage in this space,” he said Vinod Khosla in a statement. Khosla founded Sun Microsystems and launched his venture capital firm in 2004.
Oberoi co-founded Lexion with Emad Elwany other James baird. Oberoi previously helped build BillMonk, a pre-Splitwise invoice splitting app, and also created Precision Polling, an automated survey company that was later bought by SurveyMonkey. Elwany previously worked as an engineer at Microsoft in artificial intelligence and Baird is an engineer who came from the web development firm Pancake Labs.
Legal tech startups like Lexion are traveling in favor of the pandemic that accelerated digital adoption. within the legal industry with the shift to remote work. Clearbrief is another startup from Seattle that also uses AI, but for legal writing analysis.
CB Insights ranked Lexion as the most promising AI legal tech startup of the past two years.
Lexion previously raised an initial round of $ 4.2 million in 2019 from Madrona Venture Group and the law firm Wilson Sonsini, Goodrich and Rosati, who again participated in the Series A round. Kanu Gulati of Khosla Ventures will join the board of Lexion as a result of the new financing. Total funding to date is $ 15.2 million.
Other AI2 spinouts include Kitt.ai (acquired by Baidu in 2017), Xnor.ai (acquired by Apple in 2020), Why Labs, Blue Canoe, WellSaid Labs, and Panda AI.