TORONTO – October 9, 2025 – Spellbook, a trailblazer in AI-driven legal technology, has successfully closed a $50 million USD Series B funding round. The round was spearheaded by Keith Rabois, Managing Director at Khosla Ventures, with notable participation from Threshold Ventures, Inovia Capital, Bling Capital, Moxxie Ventures, Path Ventures, and Jean-Michel Lemieux. This latest capital infusion values the company at $350 million post-money and raises its total funding to over $80 million.
Spellbook’s Rise in the Legal Tech Arena
Spellbook has gained significant traction, having reviewed over 10 million contracts through its platform. Its clientele includes industry giants like Nestlé, eBay, and Kennedys. The company is on track to triple its revenue this year, cementing its position as the leading AI solution for transactional lawyers. With nearly 4,000 law firms and in-house legal teams across 80 countries using its services, Spellbook outpaces any comparable AI contract review product.
According to Scott Stevenson, CEO and co-founder of Spellbook, “We’re at the spreadsheet moment for lawyers. Just as spreadsheets transformed accounting, large language models are transforming law after 20 years of technological stagnation. With $30 trillion running through contracts annually in the U.S. alone, even small efficiency gains create massive value. This funding accelerates our mission to make contracts move at the speed of commerce.”
Expanding Horizons
The new capital will enable Spellbook to expand beyond contract review into the broader scope of transactional work. The company plans to scale its go-to-market teams to capture a larger share of the $1 trillion transactional legal services market. Additionally, it aims to enhance its AI capabilities with deeper contract intelligence grounded in realtime market data.
Keith Rabois, Managing Director of Khosla Ventures, expressed his enthusiasm, “Spellbook is using technology to make law faster, better, and more transparent. It’s the Shopify and Square democratization story for lawyers.”
AI That Lawyers Actually Use
Unlike its competitors, Spellbook integrates seamlessly into existing workflows, functioning within Microsoft Word. Stevenson noted, “We think Cursor has been so successful because it’s like an electric bicycle for engineers. They already had a bicycle – with Cursor they are still pedaling and still steering, but they can get up hills much faster. We have the same philosophy at Spellbook. We don’t require lawyers to totally change how they work, or to give up control. We just help them ascend hills faster.”
AI Grounded in Realtime Data
Many lawyers have expressed frustration with contract review outputs from other AI tools. Spellbook aims to change this by building the most data-driven contract review tool available, offering relevant and substantive suggestions grounded in realtime market data, lawyer preferences, and deal history.
The company has already started rolling out features towards this vision, including Market Comparison and Preference Learning in beta, with plans to extend availability in the coming months. It continues to invest in Spellbook Associate, the first AI agent capable of handling multi-document transactional drafting.
About Spellbook
Launched in 2022, Spellbook introduced the first GenAI tool specifically for lawyers, leading the way in AI for transactional law. Nearly 4,000 legal teams have benefited from improved contract workflows and reduced legal drudgery. Powered by large language models such as OpenAI’s GPT-5, Spellbook is optimized to use legal-specific approaches for superior contracting performance. Supported by investors like Khosla Ventures, Thomson Reuters Ventures, Inovia Capital, The Legaltech Fund, Bling Capital, and Moxxie Ventures, Spellbook continues to innovate in the legal tech space.
For more information, visit: https://www.spellbook.legal/.
Press Contact: spellbook@sbscomms.com
Note: This article is inspired by content from https://www.lawnext.com/2025/10/spellbook-raises-50m-series-b-to-expand-ai-contract-review-platform.html. It has been rephrased for originality. Images are credited to the original source.