Legal tech-focused venture capital firm closes $110 million fund

NEW YORK, Nov 17 (Reuters) - The LegalTech Fund, a venture capital firm that invests in early-stage legal technology startups, said on Monday that it has closed a second fund at $110 million. Large global law firm McDermott Will & Schulte, which also participated in the Fort Lauderdale-based LegalTech Fund’s first $28.5 million fund that closed in 2021, invested $10 million in the new fund. Legal technology company Consilio was also a lead investor.

Other investors include litigation funder Burford Capital, tech companies Clio and Docusign, legal tech and consulting firm Harbor, law firm Orrick, Herrington & Sutcliffe, and Thomson Reuters Ventures, the venture fund of Thomson Reuters, which is Reuters’ parent company. The announcement is another signal of investor enthusiasm for legal technology driven by artificial intelligence and other innovations, which has fueled a wave of investments in startups in recent months. Among the LegalTech Fund's recent investments is Boston-founded startup HelloPrenup, an online platform that helps couples create prenuptial agreements. Zach Posner, co-founder and managing partner of the LegalTech Fund, said the consumer-facing legal tech segment is “one of the biggest opportunities that nobody's paying attention to.” LegalTech Fund's other recent deals include investing in London-based Wexler, which makes AI software for litigators, and London-based Intelligent Legal Solutions, which makes a tool for investment funds lawyers.

Burford Capital