Top Venture Capital Firms & Investors in LegalTech

When it comes to investing in legaltech innovations, it can be a challenge to know who to turn to for financial support. That's why we've compiled the ultimate list of the world's legaltech investors to help guide your search. From venture capital firms to angel investors, this list is packed with informative insights on who to approach for funding your LegalTech startup.

Major law firms, including Dentons, Orrick, and Allen & Overy, which have recently set up incubators and innovation labs supporting LegalTech startups. While their direct investment levels are typically modest, their endorsements and strategic partnerships provide valuable credibility and distribution advantages.

So whether you're looking to develop a new platform for contract management or streamline legal research processes, this comprehensive list has got you covered of the top LegalTech investors in 2025.

LegalTech Funding Reaches Record Highs in 2024

The LegalTech industry quietly set new funding records in 2024, surpassing previous investment highs dating back to 2015. While the number of LegalTech deals declined significantly, the total investment amount soared, reflecting the rise of larger financing rounds for select startups. According to industry data, the total venture funding volume in LegalTech far exceeded previous peaks, despite a drop in the number of deals to just 356 globally, down from 575 in 2021.

One of the most notable trends in 2024 was the surge in venture debt financing. Over $5 billion in venture debt was issued to LegalTech companies, making debt the largest category of funding in the space. This shift suggests that many later-stage LegalTech firms opted for loans instead of equity financing—even in a high-interest-rate environment—to avoid down rounds and valuation resets.

LegalTech Trends: AI, Regulation, and the Shift to Automation

LegalTech sits in a unique position within the venture capital landscape—its success depends on the modernization pace of the legal industry, but economic and regulatory factors also play a crucial role.

One of the biggest drivers of LegalTech adoption has been the push for efficiency within corporate legal teams and law firms. In 2023, many major law firms faced financial pressure, prompting them to cut costs and explore automation tools. As a result, AI-powered legal solutions—such as automated contract management and predictive legal analytics—have gained traction among firms looking to “do more with less.

At the same time, high-interest rates have reshaped how LegalTech startups raise capital. Instead of seeking equity rounds, many mature LegalTech firms turned to venture debt financing, allowing them to avoid dilution while continuing to scale.

All LegalTech VC firms & Investors

Khosla Ventures

Founded

2004

Investments

1027

Exits

141

Investment stage

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Lux Capital

Founded

2000

Investments

403

Exits

Investment stage

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Menlo Ventures

Founded

1976

Investments

717

Exits

167

Investment stage

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Meritech Capital Partners

Founded

1999

Investments

312

Exits

125

Investment stage

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Monochrome Capital

Founded

2021

Investments

Exits

Investment stage

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NFX

Founded

2015

Investments

306

Exits

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NextEquity Partners

Founded

2015

Investments

Exits

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Noro-Moseley Partners

Founded

1983

Investments

138

Exits

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Osage Venture Partners

Founded

2005

Investments

108

Exits

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PROOF fund

Founded

2015

Investments

Exits

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Pioneer Square Labs

Founded

2015

Investments

Exits

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Remote First Capital

Founded

2018

Investments

Exits

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Right Side Capital Management

Founded

2010

Investments

1228

Exits

177

Investment stage

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Sandalphon Capital

Founded

2016

Investments

Exits

Investment stage

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Sapphire Ventures

Founded

2011

Investments

320

Exits

Investment stage

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Second Alpha Partners

Founded

2012

Investments

Exits

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Signal Peak Ventures

Founded

2001

Investments

Exits

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SignalFire

Founded

2013

Investments

165

Exits

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Socii Capital

Founded

2016

Investments

Exits

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Softbank Ventures Asia

Founded

2000

Investments

172

Exits

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Storm Ventures

Founded

1997

Investments

248

Exits

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Streamlined Ventures

Founded

2013

Investments

223

Exits

Investment stage

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TCV

Founded

1995

Investments

393

Exits

194

Investment stage

Company profile
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TDF Ventures

Founded

2004

Investments

106

Exits

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What is LegalTech?

In short, LegalTech is a sub-discipline of legal technology that uses information and communication technologies to streamline and automate the practice of law. This technology has been adopted by many startups as they look to use cutting edge technology to reduce costs, increase efficiency and provide better services for their clients.
In recent years there has been an explosion in venture capital investment into LegalTech startups. This has created a new wave of entrepreneurs who are looking to disrupt the traditional legal market with innovative solutions.

What do LegalTech investors do?

LegalTech investors provide much needed capital for entrepreneurs who are looking to launch their own LegalTech ventures. They typically have a deep understanding of the legal market and an interest in finding innovative solutions that can help increase efficiency, reduce costs and improve services. In addition to providing capital, they often provide advice on strategy and business decisions as well as mentorship and connections to potential customers or partners.

What are some of the most successful LegalTech investments?

Some of the most successful legaltech investments include: Lex Machina – a data analytics platform for understanding and predicting court outcomes; Atrium – a venture-backed law firm based in San Francisco; LawGeex – an automated contract review system; and Apperio, an artificial intelligence (AI) powered legal insights platform. All of these startups have received substantial funding from investors to help them continue developing their technology.

What are the most active LegalTech investors?

The most active LegalTech investors include 500 Startups, Y Combinator, Kleiner Perkins Caufield & Byers (KPCB), Spark Capital, Index Ventures, to name a few. These venture capitalists have been investing heavily in the legaltech industry and are backing some of the most promising startups that are transforming the legal market with innovative solutions. These investments not only provide much needed capital for entrepreneurs but also help foster an environment conducive to innovation and disruption within the legal sector.

What are examples of successful LegalTech startups?

Some examples of successful LegalTech startups include Lex Machina, Atrium, LawGeex, and Apperio. All of these companies have received substantial funding from investors to help them continue developing their technology.
Lex Machina is a data analytics platform which uses machine learning to predict court outcomes in legal cases. Atrium is an AI-driven law firm based in San Francisco which provides comprehensive legal services for businesses across the US and UK. LawGeex is an automated contract review system that helps lawyers quickly review contracts and detect any potential issues. And Apperio is an AI-powered insights platform which enables legal teams to track their performance and analyse data in order to improve efficiency and reduce costs.

What are the biggest trends in LegalTech during 2024?

As technology continues to evolve, the LegalTech industry is set to grow even further. Some of the biggest trends in LegalTech during 2024 include predictive analytics and AI-driven insights; automated document review and legal research services; and cloud-based software solutions for legal tasks.Predictive analytics will enable lawyers to accurately predict court outcomes based on historical data. AI-driven insights platforms will provide lawyers with deeper understanding of their cases as well as better analysis of data.

Automated document review systems can help lawyers quickly scan through massive amounts of documents and detect any potential issues. Cloud-based software solutions can offer more efficient ways for lawyers to manage their workflow and collaborate with other professionals.These trends are expected to revolutionize the way law is practiced and make legal services more accessible and affordable. As LegalTech continues to evolve, venture capitalists will remain keen on investing in startups that are bringing innovative solutions to the market.