LinkSquares gets new investors as cash flows to legal contract management

A U.S. flag flies in front of the Boston skyline amid the coronavirus disease (COVID-19) outbreak in Everett, Massachusetts, U.S., May 20, 2020. REUTERS/Brian Snyder

  • Latest funding round brings total raised to $61.4 million
  • Plans to use financing to double headcount, create new partnerships
  • LinkSquares had over 1,000% growth in last two years

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(Reuters) – LinkSquares Inc, a Boston-based company that offers an artificial intelligence-fueled contract lifecycle management and analysis tool, said Wednesday it has raised $40 million in Series B financing.

LinkSquares is the latest contract management provider to attract funding this year, with Lexion raising $11 million in a Series A round that included Wilson Sonsini Goodrich & Rosati last month. Among others, Ironclad Inc secured $100 million in a Series D financing in January.

Sorenson Capital led the funding round for LinkSquares, which also brought in new investors, including Catalyst Investors, Xerox Holdings Corp, Bottomline Technologies Inc, and the founders and legal and compliance executives of DraftKings Inc. Existing investors, including Hyperplane Venture Capital, MassMutual Ventures LLC and First Ascent Ventures also participated in the round, the company said.

“LinkSquares has built a product unlike anything else on the market that uniquely solves the biggest immediate and long-term headaches customers face,” Sorenson Capital partner Brady Broadbent, who joins the company’s board, said in a statement. “The company has achieved phenomenal growth as a result.”

LinkSquares said in a statement that legal departments and contract negotiators “faced a critical period of upheaval and transformation” during the pandemic. The company has seen more than 1,000% growth over the past two years and has added customers including FitBit Inc, Twilio Inc, TGI Fridays, Wayfair Inc and Cogito Corp, it said.

With the fresh investment, the company has now raised $61.4 million since its founding in 2015. LinkSquares plans to double its headcount by the end of this year, which will help the company continue to advance the product. New investors will also support new partnerships – including a technology partnership with Xerox PARC (Palo Alto Research Center), a subsidiary of new investor Xerox, according to the company.

“Legal tech was overdue for a shake-up,” Danielle Sheer, general counsel of software company Bottomline Technologies who also joins LinkSquares’ board, said in a statement.

In-house legal teams “must contribute data-driven, insightful analysis to business colleagues, which requires powerful, user-friendly, next-generation tools,” Sheer said.

Read more:

Lexion, AI-based contracts venture backed by Wilson Sonsini, raises $11 mln

Sara Merken

Sara Merken reports on privacy and data security, as well as the business of law, including legal innovation and key players in the legal services industry. Reach her at sara.merken@thomsonreuters.com

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Sara Merken