Key facts
- Wordsmith, a legal tech startup, has raised $70 million in new funding.
- The company develops AI software to help corporate legal teams automate drafting and other tasks.
- Wordsmith's software integrates with tools like email, Slack, and Microsoft Teams to draft contracts and answer legal questions.
- The funding round was backed by Index Ventures, Highland Europe, and others.
- Wordsmith's software is used by over 500 companies, including Canva and Financial Times.
- Founder Ross McNairn previously built and sold a travel tech startup.
Legal tech startup Wordsmith has raised $70 million in new funding to expand its AI-powered software designed for corporate legal teams. The company aims to help in-house lawyers automate tasks such as drafting contracts and answering legal questions, thereby reducing the amount of work sent to external law firms. Wordsmith's platform integrates with existing communication and CRM tools like email, Slack, Microsoft Teams, and Salesforce to streamline legal workflows. The latest funding round, backed by investors including Index Ventures and Highland Europe, brings the company's total funding to $100 million within 24 months. Wordsmith's software is currently used by over 500 companies, including legal departments at Canva, Financial Times, Safelite, Trip.com, and BT. Founder and CEO Ross McNairn, a former lawyer, established Wordsmith with the strategy of focusing solely on corporate legal departments, differentiating from competitors that also serve law firms. He argues that serving both sides creates a conflict of interest. The legal AI landscape has seen significant investment, with companies like Harvey also expanding into the corporate legal sector. Wordsmith competes with other startups targeting contract work, such as Spellbook and Ivo. The rise of general-purpose AI assistants like Anthropic's Claude also presents a competitive dynamic, though McNairn believes specialized legal software like Wordsmith remains essential for managing a legal department's functions beyond individual tasks.