TLDR: Legal artificial intelligence firm Spellbook has successfully raised $50 million in a Series B funding round, bringing its total funding to over $80 million and valuing the company at $350 million post-money. The capital, led by Khosla Ventures, will be used to expand Spellbook’s generative AI platform beyond contract review into the broader transactional legal services market, serving its growing base of nearly 4,000 law firms and in-house legal teams across 80 countries.
Toronto-based Spellbook, a pioneering legal artificial intelligence platform, announced on October 9, 2025, the successful closure of a $50 million Series B funding round. This significant investment, led by Keith Rabois, Managing Director at Khosla Ventures, elevates the company’s post-money valuation to $350 million and increases its total funding to more than $80 million. Threshold Ventures also participated in the round, alongside existing investors Inovia Capital, Bling Capital, Moxxie Ventures, Path Ventures, and Jean-Michel Lemieux.
Launched in 2022, Spellbook has rapidly established itself as a leading generative AI tool for legal professionals, often likened to ‘Cursor for contracts.’ The platform is specifically designed to streamline and enhance contract development, accuracy, and improvement, aiming to alleviate the burden of tedious legal tasks. Powered by advanced large language models, including OpenAI’s GPT-5, Spellbook’s technology is optimized with legal-specific approaches to meet client expectations in contract law.
Scott Stevenson, CEO and co-founder of Spellbook, emphasized the transformative impact of AI on the legal sector, stating, ‘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.’ He further highlighted the immense potential for efficiency gains, noting that ‘With $30 trillion running through contracts annually in the U.S. alone, even small efficiency gains create massive value.’
This new capital infusion will primarily fuel Spellbook’s strategic expansion beyond its core contract review capabilities into the full spectrum of transactional legal work. The company plans to scale its go-to-market teams to capture a larger share of the estimated $1 trillion transactional legal services market. Additionally, the funding will be invested in enhancing Spellbook’s AI capabilities, providing deeper contract intelligence grounded in real-time market data. The company has already begun rolling out new features, such as ‘Market Comparison’ and ‘Preference Learning,’ in beta mode to support this expansion.
Spellbook’s platform integrates directly into Microsoft Word, functioning as an intelligent legal companion for attorneys. It enables lawyers to draft new documents or review existing ones, offering AI-powered suggestions and feedback. The tool includes a library of pre-written clauses for easy insertion and provides playbooks with detailed rules and recommendations for various contract types. It can also connect with in-house document repositories like OneDrive and Dropbox, or process directly uploaded files, to analyze and index personalized and team-wide contract language. This functionality allows legal teams to leverage their past deal history to identify appropriate clauses and language without extensive manual searching.
The investment comes as Spellbook celebrates a significant milestone, having surpassed 10 million contracts reviewed on its platform. The company boasts a robust customer base, serving nearly 4,000 law firms and in-house legal teams across 80 countries, including notable clients such as Nestlé SA, eBay Inc., and Kennedys Law LLP. Spellbook is also on track to triple its revenue this year, solidifying its position as a leading AI solution for transactional lawyers.
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Keith Rabois, who will join Spellbook’s board of directors, expressed his confidence in the company’s vision: ‘Spellbook is using technology to make law faster, better, and more transparent. It’s the Shopify and Square democratization story for lawyers.’
