In a remarkable development within the legal technology sector, The LegalTech Fund has successfully closed its second investment fund at $110 million. This achievement marks a nearly fourfold increase from its initial $28.5 million fund raised in 2021.
A Significant Milestone
The closing of this second fund is particularly noteworthy given the current challenging venture capital environment. Over the past two years, many venture capital firms have faced difficulties in raising new funds due to economic uncertainties and a slowdown in technology investments.
Key Investors and Contributions
Leading the investment was the global law firm McDermott Will & Schulte, which made a $10 million commitment. Joining as a new lead investor was Consilio, a legal technology and services company. Other strategic investors in the fund include:
– Clio
– Docusign
– Harbor
– Orrick
– Thomson Reuters Ventures
These investors bring not only financial backing but also strategic value, helping to shape the future of legal technology.
Investing in Legal Tech
Since its inception in 2021, The LegalTech Fund has been dedicated exclusively to legal technology investments. It has invested in over 80 companies across its two funds. The second fund will continue to focus on early-stage startups globally, investing in rounds up to Series A.
“We launched TLTF to help entrepreneurs transforming the world of law realize their vision, and we are doing just that,” said Zach Posner, co-founder and managing partner of The LegalTech Fund.
Portfolio and Recent Investments
The fund’s portfolio covers a wide range of legal technology, from litigation support to legal operations and access to justice. Recent investments include:
– Wexler’s AI platform : Designed for complex litigation
– Entegrata’s AI and analytics tools : Aiding legal teams
– Flo Recruit’s legal hiring platform
– HelloPrenup’s service : Offering accessible prenuptial agreements
Growing Confidence in Legal Tech
The successful fundraise underscores a growing investor confidence that legal technology is a durable investment category. The fund has highlighted the legal industry’s ongoing transformation driven by technology, drawing parallels to previous waves of innovation in financial services, healthcare, and insurance.
Strategic Implications
For McDermott Will & Schulte, this investment represents a strategic move to stay ahead of industry disruption. “The world of law is at an inflection point that will transform our industry,” said Ira Coleman, the firm’s chairman. “We’re committed to driving that disruption, not being disrupted by it.”
Beyond Financial Returns
The fund’s anchor investors gain more than financial returns. Their involvement provides early access to emerging technologies and the opportunity to shape products that could transform their own operations and client services.
Convening the Legal Tech Ecosystem
Beyond its investing activities, The LegalTech Fund has established itself as a significant player in the legal tech ecosystem through initiatives such as the TLTF Summit and The LegalTech Lab.
Note: This article is inspired by content from https://www.lawnext.com/2025/11/the-legaltech-fund-closes-110-million-second-fund-nearly-4x-its-first.html. It has been rephrased for originality. Images are credited to the original source.