Legal AI startup LegalOn has raised $50 million in a Series E round led by Goldman Sachs Alternatives’ growth equity arm.
The round brings LegalOn’s total funding to $200 million, with participation from returning investor World Innovation Lab (WiL) and new backers Mori Hamada, Mizuho Bank, and Shoko Chukin Bank.
The firm has also announced a partnership with OpenAI to develop new domain-specific AI agents for legal work.
LegalOn builds AI tools for contract review and legal workflow automation. Its main product flags risks in contracts and suggests redlines based on internal legal standards and playbooks. The company claims to have reduced contract review time by up to 85%.
The company says it now serves over 7,000 customers, including 40 Fortune 500 firms, and continues to hold a dominant position in Japan, where it claims to serve 25% of listed companies.
LegalOn also said its business in the US and UK has grown fourfold over the past year, although it did not disclose revenue or customer breakdown by geography. The company has teams in both San Francisco and Tokyo, and is expected to invest the fresh capital into product development, sales, and expansion efforts in Western markets.
The strategic partnership with OpenAI will give LegalOn access to the former’s enterprise tools, including ChatGPT Enterprise and its API. Details on release timelines or commercial arrangements were not disclosed.
“From day one, we’ve focused on building solutions that help in-house legal teams move faster, reduce risk and drive greater business impact,” said Nozomu “Nozo” Tsunoda, co-founder and Group CEO of LegalOn.
“Collaborating with OpenAI puts us at the forefront of innovation and accelerates our mission to transform legal work with trustworthy AI, enabling us to bring even more advanced tools that meet the high standards our customers expect. We’re excited to be able to deliver an unprecedented experience through this collaboration.”
