Lexion is on a roll.
The Seattle startup that helps authorized groups use AI to sift by means of contracts has quadrupled income and added 50 clients over the previous 4 months, together with manufacturers similar to Outreach, Blue Nile, OfferUp, and others.
Now the corporate is reeling in extra cash to supercharge progress, asserting a $11 million Sequence A spherical led by Khosla Ventures. It’s one of many solely Seattle-area startups to land funding from Khosla, a high Silicon Valley agency that has backed giants similar to DoorDash, Okta, Opendoor, Sq., and others together with OpenAI.
Lexion, which spun out of Seattle’s Allen Institute for Synthetic Intelligence, makes use of algorithms to mechanically parse contracts and floor related information. It produces an organized searchable repository and numerous experiences.
The concept is to assist authorized groups which are presently utilizing a mishmash of instruments similar to Dropbox and Excel. Lexion can shortly reply questions both on its platform or inside different apps similar to Slack or Salesforce about whether or not a contract is energetic or which have termination clauses, for instance.
The 30-person firm is a part of a fast-growing phase referred to as contract lifecycle administration methods (CLMs) that features heavy hitters similar to Seattle-area unicorn Icertis and several other others.
Lexion is concentrated on mid-market smaller firms which have a handful of authorized consultants whose time could be higher spent on one thing apart from wading by means of paperwork. Lexion’s simplicity, quick onboaring course of, and state-of-the-art pure language processing tech provides it an edge over opponents, in accordance with CEO Gaurav Oberoi.
“It’s going to permit attorneys to do the factor they thought they’d do popping out of legislation faculty, versus quite a lot of the executive and menial duties that find yourself taking a big chunk of their time week over week,” mentioned Lexion CEO Gaurav Oberoi.
Lexion plans to make use of the contemporary money to transcend simply reporting and into workflow, serving to firms streamline how contracts are accepted and offering a dashboard that lets authorized groups handle the method.
“This mix of cutting-edge know-how, with easy and sensible utility, is strictly how the worth of AI will get realized in firms, and is why we expect Lexion has a profitable benefit on this area,” Vinod Khosla mentioned in a press release. Khosla based Solar Microsystems and launched his VC agency in 2004.
Oberoi co-founded Lexion with Emad Elwany and James Baird. Oberoi beforehand helped construct BillMonk, a bill-splitting app that predated Splitwise, and in addition created Precision Polling, an automatic survey startup that was later bought by SurveyMonkey. Elwany beforehand labored as an engineer at Microsoft on synthetic intelligence and Baird is an engineer who got here from internet growth agency Pancake Labs.
Authorized tech startups similar to Lexion are using tailwinds from the pandemic that accelerated digital adoption inside the authorized trade with the shift to distant work. Clearbrief is one other newer Seattle startup that additionally makes use of AI, however for authorized writing evaluation.
CB Insights ranked Lexion as essentially the most promising AI authorized tech startup for the previous two years.
Lexion beforehand raised a $4.2 million seed spherical in 2019 from Madrona Enterprise Group and legislation agency Wilson Sonsini, Goodrich and Rosati, which each participated once more within the Sequence A spherical. Kanu Gulati from Khosla Ventures will be a part of Lexion’s board because of the brand new funding. Whole funding thus far is $15.2 million.