We’re just barely into the second month of 2025, and we’ve already seen a steady stream of funding announcements in legal tech. This influx of funding has been rivaled only by the proliferation of AI tools and news of legal tech M&A activity. 

On Wednesday, contract review platform Ivo furthered two of those trends with a joint announcement of a $16 million investment and the launch of a new AI legal assistant for contract review. 

The $16 million Series A funding round was led by Costanoa Ventures, with participation from Fika Ventures, Uncork Capital, NFDG, Blackbird VC, GD1, and Phase One Ventures. It brings Ivo's total funding to date to $22.2 million, following an earlier $4.8 million seed round. 

Ivo said the investment will be used to scale its AI-powered contract review technology, which automatically checks agreements against company requirements, generates suggestions for resolving discrepancies, and creates language that compromises between conflicting clauses. It aims to create natural outputs that mirror the outputs of experienced attorneys.  

Bolstering those contract capabilities is a new AI legal assistant called Ivo Search Agent, publicly launched alongside the news of Ivo’s new investment. “Ivo has developed an approach that augments rather than replaces legal judgment – acting as a ‘powerful force multiplier’ for teams handling increasingly large volumes of contracts,” the company said in the press release. 

Specifically, Ivo Search Agent eliminates the need for the manual metadata tagging required by traditional contract lifecycle management (CLM) systems. The AI legal assistant can also search and generate reports across a user’s entire contract portfolio, accessing documents from various storage locations including cloud storage solutions, document management systems (DMSs), and local computers. 

"The legal profession is in the early stages of an AI-driven transformation," Ivo CEO and Co-Founder Min-Kyu Jung said in the release. "We're building Ivo to ensure this change enhances rather than diminishes the crucial role of legal judgment. Our vision is to give every legal team the power to handle enterprise-scale contract volumes while maintaining the highest standards of accuracy and control." 

Legal Tech’s Current Funding Spree 

The legal tech industry saw some massive investments in 2024 – peaking with Clio’s $900 million Series F. That funding trend has not slowed down in 2025. If anything, it’s caught even more steam than many expected. 

Prior to Ivo’s new raise, LTH has covered the following fundraising announcements in 2025 so far: 

• Harvey: On January 16, it was reported that Harvey is set to raise an additional $300 million in funding from Sequoia Capital. The investment would reportedly double Harvey’s valuation to $3 billion.  

• Eve: On January 16, Eve, providers of a GenAI-powered case workspace for plaintiffs’ lawyers, announced they had raised $47 million in a Series A round led by a16z with participation from Lightspeed Venture Partners and Menlo Ventures. The company intends to use the funds to “further its mission to help plaintiff legal teams become AI-native.” 

• Paxton: On January 29, legal AI platform Paxton announced it raised $22 million in a Series A round led by Unusual Ventures, with participation by Kyber Knight, 25Madison, and Wisconsin Valley Ventures, bringing its total funding to date to $28 million. Paxton intends to use the funds to expand its technology, grow its team, and support its goal of automating labor-intensive tasks. 

• Lawpath: On February 4, Sydney-based legal and business services platform Lawpath announced that it had secured an AU$10M (USD $6.25 million) strategic investment round led by Westpac Bank. The investment is intended to accelerate Lawpath’s development of its legal and compliance tools with the aim of “democratising legal and business services for startups and SMEs [small and medium-sized enterprises] across Australia.” 

• Abstract: On January 9, Abstract, providers of a regulatory superintelligence platform, announced a $4.8 million seed funding round co-led by Bonfire Ventures and Communitas Capital, bringing the company’s total fundraising to over $9 million. Abstract intends to use the investment to increase its abilities to combine disparate elements of regulation to create intelligence and context. 

• Parambil: On January 15, Parambil, providers of an AI-powered knowledge platform for tort law, announced a $2 million pre-seed funding round led by Daybreak Ventures.  The company will use the investment to help transform complex litigation through AI-powered medical record analysis. 

LTH will continue to report on the legal tech funding announcements as they keep coming in.