Meet the 10 VCs making the biggest bets in legal tech, from Andreessen Horowitz to Peter Thiel’s Founders Fund

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Andreessen Horowitz’s Marc Andreessen, Ulu Venture’s Miriam Rivera, and Founders Fund’s Peter Thiel.

Steve Jennings/Getty; Ulu Ventures; Stephanie Klein/Getty

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  • As the legal industry is being propelled toward digitization and innovation, venture capitalists are pouring more investments into legal tech.
  • The total value of legal tech deals clocked in at $1 billion globally in 2019, double the amount from the previous year, according to data from PitchBook.
  • Here’s a list of 10 of the top VCs leading the charge in legal tech investments, from titans like Accel and Bessemer Venture Partners to Peter Thiel’s Founders Fund.
  • Visit Business Insider’s homepage for more stories.

All signs seem to be pointing toward digitization in the legal industry — and venture capitalists are taking note.

The last few years has seen a growth in VC investment deal activity in legal tech. Last year, there were 124 deals valued at around $1 billion in the space globally, up from 84 deals valued at $500 million in 2018, according to data from PitchBook. This year, there have been 80 investments, with a total value of $490 million, to date.

This year’s deal activity from VCs lags behind 2019 for two probable reasons, said Scott Mozarsky, who focuses on legal and compliance markets as a managing director at the investment bank, JEGI. While Q3 and Q4 to date have been “extremely active,” Q2 this year was not due to the pandemic.

Mozarsky added that the last couple of years saw very large investments in a select few legal tech companies that pushed up the deal value figures. For example,  cloud-based legal software provider Clio raised a blockbuster $250 million in its Series D round last year, while private equity firm Hg Capital acquired the end-to-end document management system, Litera, in 2019 as well. While it didn’t disclose the terms of the agreement, Hg did announce that it would invest $42 million in Litera.

As for investments this year, DISCO, an AI-fueled platform that helps lawyers gather evidence quickly without using third-party providers, raked in $60 million from top VCs like Georgian Partners and Bessemer Venture Partners in October. Another up-and-coming startup, DoNotPay raised $12 million in its June Series A, led by hedge fund Coatue Management, from Andreessen Horowitz and Peter Thiel’s Founders Fund.


Law firms seeking greater efficiency, clients wanting to cut costs, and in-house counsel needing to validate their work have all led to a drive for innovation in the legal industry, several VC investors previously told Business Insider.

Read more: The notoriously old-school legal industry is finally warming up to tech. Here are the winners and losers as law firms turn to startups to cut costs.

The coronavirus pandemic, which has propelled most corporations toward remote work, has only accelerated the drive toward technology, from cloud data storage to contract management platforms.

The 2020 Legal Trends Report, released last month by Clio, one of the largest tech companies in the legal industry, found that there were measurable benefits to firms that more readily innovated during the pandemic: Law firms that employed certain types of technologies earned 40% more in revenue in August, and generated 27% more new casework from May to August, compared to firms that didn’t.

As investors are increasingly eyeing legal tech, Business Insider used data from PitchBook and Crunchbase to compile a list of the VC players that have made the most investments in the legal tech market. Some VCs invested in the same companies multiple times, and the deal counts below reflect this number.

500 Startups

Christine Tsai, CEO of 500 Startups.

500 Startups

Deal count: 13

Invested in: Ironclad, Lexoo, Atrium, LawTrades, Court Buddy, Clara, ClaimCompass, UpCounsel, Spotdraft, Lexyom

500 Startups, an early-stage venture fund and seed accelerator with locations in 13 cities around the world, tops the list with the most legal tech investments among VCs. Its suite of startups range from UK-based Lexoo, which offers a legal outsourcing platform, to Clara, which provides legal assistance specifically for startups.

Ulu Ventures

Miriam Rivera, cofounder and managing partner of Ulu Ventures.

Kauffman Foundation

Deal count: 8

Invested in: Everlaw, Lex Machina, Time by Ping, Ravel Law, Hire an Esquire, Bridge US, Buzz Solutions

Given that its cofounder, Miriam Rivera, was Google’s former deputy general counsel, it’s no surprise that San Francisco-based Ulu Ventures has a host of legal tech startups in its portfolio. It led the 2012 seed round of Lex Machina, a legal analytics startup that was acquired by LexisNexis in 2015.

More recently, it participated in the $13.2 million Series A of Time by Ping, an automated timekeeping platform for lawyers.

Andreessen Horowitz

Founders of Andreessen Horowitz, Ben Horowitz and Marc Andreessen.

Phillip Faraone/Getty; Steve Jennings/Getty

Deal count: 7

Invested in: Everlaw, DoNotPay, Lawdingo, Atrium

Andreessen Horowitz, widely known as one of the most prominent VC gatekeepers of Silicon Valley, has invested in some of the hottest legal tech startups. It led e-discovery and litigation startup Everlaw‘s $8.1 million Series A funding in 2016, and also participated in its $25 million Series B in 2018 and $62 million Series C in March this year.

The VC was also prominently involved in Atrium, which was widely regarded as the legal-tech darling when it launched in 2018. Before the startup shuttered in March this year, it snapped up $65 million in its Series B funding, led by Andreessen Horowitz. 

Read more: These 9 legal tech startups are poised to take off as law firms look to cut costs and boost productivity, according to top VCs

Nextlaw Ventures

Nextlaw is global law firm Denton’s legal tech investment arm.


Deal count: 6

Invested in: Apperio, Clause, Doxly, ROSS Intelligence, Libryo, ProFinda, Hire an Esquire, FileFacets, Qualmet

Nextlaw Ventures, launched by the global law firm Dentons, focuses exclusively on legal technology. The early-stage venture firm has invested in larger companies like ROSS Intelligence, which uses AI to power legal research, as well as more niche startups like Qualmet, which provides data to corporate legal departments to help them assess the value of their outside counsel.

Accel Partners

Jim Swartz, cofounder of Accel.

Alberto E. Rodriguez/Getty

Deal count: 6

Invested in: Ironclad, DocuSign, Bryter

VC titan, Accel, has invested in some of the biggest legal tech startups in the market. It led the Series A round for contract management software Ironclad, helping the startup raise a total of $11 million in funding, and also led both the 2019 seed and 2020 Series A rounds for Bryter, a Berlin-based startup that offers a no-code automation platform.

Bessemer Venture Partners

Byron Deeter a partner at Bessemer Venture Partners.

Bessemer Venture Partners

Deal count: 5

Invested in: Clio, DISCO, DocuSign, CrowdJustice

VC heavyweight Bessemer Venture Partners has a roster of some of the buzziest legal tech startups. It participated in e-discovery startup DISCO‘s $60 million funding this October, and previously led both its Series B and D rounds in 2014 and 2018, respectively.

It also invested in e-signature company DocuSign’s $30 million Series C funding in 2010, and its massive $629 million IPO in April 2018.

Insight Venture Partners

Jeff Horing, managing director and cofounder of Insight Venture Partners.

Insight Partners

Deal count: 5

Invested in: DocuSign, Kira Systems, ComplianceQuest, ContractPodAI, Anaqua, Paisley, Dolphin Search 

New York-based Insight Venture Partners, which focuses exclusively on software companies, has a bevy of legal tech companies in its portfolio, ranging from contract lifecycle management startup ContractPodAI to intellectual property management software, Anaqua.

In 2018, it was also the lead investor in the $50 million Series A of document analysis startup, Kira Systems — the largest ever funding of an AI startup in the sector at the time, according to Artificial Lawyer.

Founders Fund

Peter Thiel, cofounder of Founders Fund.

Stephanie Klein/Getty

Deal count: 5

Invested in: Atrium, DoNotPay, Notarize

Peter Thiel’s Founders Fund has invested in some notable legal tech startups as well. In 2018, it participated in the $20 million Series B of Notarize, an online platform for digitized notarization of documents.

It also invested in both the 2019 seed and Series A funding rounds for DoNotPay, a “robot lawyer” that was the brainchild of Josh Browder, who dropped out of Stanford to become a Thiel fellow. The startup’s Series A, in August this year, raised $12 million with a $80 million valuation, as previously reported in Business Insider.

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Yoonji Han