Legal-tech funding has surged to nearly $999 million in 2025, driven by interest in digital transformation and AI technology, even as global venture funding slows. Investors are increasingly eyeing niche legal-tech solutions that promise growth. Notable funding rounds include Sapphire Ventures leading a $60 million investment in software for law firms and a collaborative effort on improving corporate diligence. Legal-tech's growth signals a significant shift, overcoming previous challenges in software adoption within law firms, which traditionally relied on physical documents stored on-site for security.
In a VC market that's really sleepy for the rest of the world, this has been as hot as you can humanly imagine.
It's a legal-tech boom, and investors are making their closing arguments in cash, with funding reaching $999 million in 2025.
Investors are drawn to legal tech's digital transformation amid AI advancements, targeting niche markets for future growth.
Traditional software investors are increasingly interested in legal-tech deals, eager to claim a piece of the legal industry's transformation.
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