Total amount raised
$32.4 Million
Latest funding date
1/1/2024
Location
Spellbook has successfully raised funding over nine rounds, with the latest being a Series B round led by Khosla Ventures. The platform offers an AI-powered tool designed to assist commercial lawyers in drafting and reviewing contracts.
Keep reading to explore the intricacies of Spellbook's fundraising journey and the investors backing this innovative platform.
What Is Spellbook?
Spellbook is a legal software startup based in Toronto, Ontario, Canada. The company specializes in developing a generative artificial intelligence tool designed to assist commercial lawyers with contract drafting and review.
Operating in industries such as AI, Developer Tools, Generative AI, Legal Tech, and Software, Spellbook has an employee count ranging from 101 to 250. The platform is integrated directly into Microsoft Word, making it a seamless addition to legal workflows.
How Much Funding Has Spellbook Raised?
- Pre-Seed
- Amount Raised: USD 750,000
- Date: January 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Likely used to develop the initial product and establish the company.
- Series Unknown
- Amount Raised: USD 750,000
- Date: December 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and development.
- Non-Equity Assistance
- Amount Raised: Not publicly disclosed
- Date: June 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and development.
- Grant
- Amount Raised: USD 265,000
- Date: December 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and development.
- Seed
- Amount Raised: USD 500,000
- Date: October 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and development.
- Debt Financing
- Amount Raised: USD 500,000
- Date: November 2021
- Lead Investors: Atlantic Canada Opportunities Agency
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and development.
- Seed
- Amount Raised: USD 10,900,000
- Date: May 2023
- Lead Investors: Moxxie Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To rebrand from Rally to Spellbook and further develop the AI tool for contract review and drafting.
- Series A
- Amount Raised: CAD 27,000,000
- Date: January 2024
- Lead Investors: Inovia Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the solution to 30,000 law firms worldwide and continue innovating within the legal AI sector.
- Series B
- Amount Raised: USD 50,000,000
- Date: October 2025
- Lead Investors: Khosla Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the growth and development of Spellbook's generative AI contract drafting tool for lawyers.
Total Amount Raised: USD 62,915,000. Current Valuation: Not publicly disclosed.
Key Investors
- Khosla Ventures
- Details: Khosla Ventures is a venture capital firm founded by Vinod Khosla, focusing on impactful technology investments. They led the Series B funding round for Spellbook.
- Investment Focus Areas: Technology, healthcare, sustainability.
- Notable Investments: Square, DoorDash, Impossible Foods.
- Inovia Capital
- Details: Inovia Capital is a venture capital firm based in Montreal, known for supporting innovative technology companies. They led the Series A funding round for Spellbook.
- Investment Focus Areas: Technology, innovation, high-priority workflows.
- Notable Investments: Lightspeed, AppDirect, Clearco.
- Moxxie Ventures
- Details: Moxxie Ventures is an early-stage venture capital firm led by former Twitter executive Katie Stanton. They participated in the Seed and Series A funding rounds for Spellbook.
- Investment Focus Areas: Early-stage technology, innovation.
- Notable Investments: Not publicly disclosed.
- Atlantic Canada Opportunities Agency
- Details: The Atlantic Canada Opportunities Agency is a government agency that provides financial assistance to businesses in Atlantic Canada. They provided debt financing for Spellbook.
- Investment Focus Areas: Economic development, business growth, innovation.
- Notable Investments: Not publicly disclosed.
- Bling Capital
- Details: Bling Capital is a venture capital firm that invests in early-stage technology companies. They participated in the Series A funding round for Spellbook.
- Investment Focus Areas: Early-stage technology, innovation.
- Notable Investments: Clubhouse, Lambda School.
What's Next for Spellbook?
Spellbook's future is brimming with opportunities as it aims to scale its operations to 30,000 law firms worldwide. The legal AI market is expanding rapidly, and Spellbook's innovative functionalities, such as AI that mimics a lawyer's style and automates end-to-end workflows, position it well to capture a significant share. The platform's current usage by over 1,700 law firms and its processing of 86,000 contracts monthly underscore the vast potential for growth.
Given its impressive growth trajectory, Spellbook is likely to attract further investment to support its ambitious expansion plans. The company has already demonstrated a 10x increase in revenue and a 300% rise in its customer base, making it a strong candidate for future funding rounds. These funds could be pivotal in enhancing its AI capabilities and expanding its market reach.
However, Spellbook will face challenges as it scales. Competition in the legal tech space is intensifying, and ensuring the accuracy and reliability of AI-generated legal documents will be crucial. Additionally, managing rapid growth while maintaining product quality and customer satisfaction will require significant resources and operational efficiency. Despite these hurdles, Spellbook's innovative approach and strong market position make it a formidable player in the legal AI industry.
Use Clay to Get Funding Data
Sales professionals, take your strategy to the next level by leveraging Clay’s platform to access comprehensive fundraising data on companies like Spellbook and gather other critical business insights.
Sign up for free to start unlocking valuable information that can drive your sales success.
