LegalOn Raises $50M to Expand AI-Powered Legal Workflow Tools

Tokyo-based LegalOn Technologies has raised $50 million in Series E funding to accelerate the development of AI tools designed to streamline legal workflows. The round was led by Goldman Sachs’ growth equity fund, with participation from World Innovation Lab, law firm Mori Hamada & Matsumoto, Mizuho Bank, and Shoko Chukin Bank. LegalOn’s AI software, Review, identifies risks in contracts and suggests edits using attorney-created playbooks and client-specific standards, reducing review times by up to 85% while improving accuracy. The platform is already used by 7,000 organizations across Japan, the U.S., and the U.K., including 25% of Japan’s publicly listed companies. The company plans to invest heavily in building advanced AI agent tools and scaling operations in the U.S. and U.K., where its business has grown fourfold in the past year. Founded in 2017 by former lawyers Nozomu Tsunoda and Masataka Ogasawara, LegalOn also recently launched Matter Management, a tool that helps legal teams organize requests, track assignments, and collaborate across departments. LegalOn’s strength lies in its foundation of attorney-drafted content, enabling its AI models to produce precise, legally sound results without requiring users to build rules from scratch. Its partnership with OpenAI provides access to cutting-edge large language models, further enhancing its AI capabilities. CEO Daniel Lewis emphasized that LegalOn’s vision is to empower, not replace, legal professionals, noting that AI’s current limitations still require human oversight and judgment. The Series E brings LegalOn’s total funding to more than $200 million, with previous investments from SoftBank Vision Fund, HSG, JAFCO, and MUFG Bank. The funding reflects the growing momentum of AI in the legal sector, following major raises by companies like Harvey AI and Clio, as legal teams increasingly adopt AI tools to manage complex workflows efficiently.