Business

Lexion Raises $20M In Series B Led By Point72 To Bolster Its AI-Powered Software

Lexion is a cutting-edge software platform that has harnessed the power of AI to revolutionize contract analysis and management. This is done by centralizing the contractual process in a system that functions the way you do and streamlining it.

Rebecca M

Apr 26, 2023 • 6 min read

Lexion, the Seattle-based contracts analytics platform that uses artificial intelligence (AI) to automate contract analysis and management for legal teams, has raised $20 million in Series B funding led by Point72 Ventures.

This new funding for Lexion is a testament to the growing importance of AI-powered software in the legal industry. As the legal industry continues to evolve and adapt, it's no secret that AI-powered software is becoming increasingly vital for meeting the demands of modern legal teams. Not only does AI-powered software, like Lexion's platform, improve efficiency and streamline the contract management process, but it also reduces human error and frees up valuable time for legal professionals to focus on more strategic tasks.

About Lexion

Lexion is an AI-powered platform, which leverages natural language processing and machine learning, allows legal teams to quickly and accurately analyze contracts for key terms, clauses, and risks, ultimately saving valuable time and reducing cost.

The recent $20 million Series B funding raised by Lexion is proof of the growing importance of AI-powered software in the legal industry.
Legal professionals are under constant pressure to stay up-to-date with the latest technology in order to improve their work processes and efficiencies.
With Lexion's AI-powered platform, lawyers can now quickly and effectively analyze contracts, reducing the amount of time and resources required for these tasks.
In order to increase visibility and collaboration, Lexion provides businesses with a mechanism to centralise all of their contracts. The platform is now a "workflow tool for operations teams."
You don't utilise many systems and spreadsheets. Existing technologies like Salesforce and Microsoft Word are integrated with the software.
The ability to suggest potential corrections and create comprehensive text summaries are two of the new GPT features that Lexion released for its Word plug-in last year.
The business will be able to cut the time lawyers spend examining contracts by 80%.
The development of software that aids operations teams in closing agreements more quickly is the only focus of Lexion.

With outstanding engineering talent (ex-Google, Microsoft, Facebook, Amazon), seasoned legal leadership, elite supporters, and well-known clients, Lexion is the right technology platform for accelerating contracting across in-house legal teams, sales, procurement, finance, HR, and IT.

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About The Beginning Of Lexion

The Allen Institute for AI is where Gaurav, Emad, and James, first met in 2018. That year significant advances in natural language processing were made.

The three were inspired to use this technology to eliminate tedious work, and they saw the value of automatically extracting key information from contracts right away.
This would free up legal teams from tedious tasks like filing contracts and manual reporting, allowing them to concentrate on what really matters: expanding the business and giving strategic advice.
To make this a reality, they established Lexion in 2019 and started developing a superior product with simplicity at its core.
With the goal of serving as the customer's voice, they extended an invitation to Jessica to join Lexion as Chief Legal Officer in 2020.
Jessica's decades of experience working as in-house counsel was the ideal addition to Lexion's DNA in fusing legal and advanced technology knowledge.
The development of software that aids operations teams in closing agreements more quickly is the only focus of Lexion.

lexion-founders

$20M In Series B Led By Point72

Lexion established itself by utilising artificial intelligence to support legal departments with contract management. However, it is now aiming for a much wider vision.

The Seattle business just secured $20 million to support its AI-powered software that expedites the closing of deals.
When Lexion was first established in 2018, it marketed its solution as a smart repository for contracts, giving legal teams a mechanism to rapidly respond to simple inquiries concerning pre-existing papers.
The startup quickly understood, however, that it might also be useful during the contract development process, assisting not only legal but also sales, IT, finance, HR, and anybody else working with contracts or other documents like RFPs and surveys.
That tactic was really successful. In 2022, Lexion's revenue tripled, and now investors are adding more fuel to the fire.
When it comes to legal technology and contract management, Lexion has made a name for itself among incumbents like DocuSign and competitors like the Seattle-area unicorn Icertis.
In 2018, the startup split off from the Allen Institute for Artificial Intelligence, based in Seattle.

As they expand their focus to cover additional operational routines, we anticipate them to apply the same calibre of product expertise and innovation to new use cases.

About The Funding

A $20 million Series B fundraising round for Luxion was led by Point72 Ventures.

Citi Ventures, and current investors Khosla Ventures, Madrona Venture Group, and Wilson Sonsini participated in the funding.
The firm can now further improve Lexion's core platform and AI capabilities to help every department conclude deals more quickly thanks to this fresh investment, which increases the total amount raised to almost $35 million.

Future Of Lexion

In 2022, Lexion saw rapid expansion, tripling its revenue for the third consecutive year and adding hundreds of corporate clients from a range of sectors, including B2B technology, healthcare, consumer goods, manufacturing, and gaming.

The stress associated with implementing new software is reduced by Lexion's simple implementation and user-friendly interface.
Customers frequently remark that because new technologies work so well with their systems, their sales teams aren't even aware they're utilising them.
The goal of Lexion is to become a horizontal operations workflow solution, and the firm is well-positioned to achieve this goal thanks to its investment in artificial intelligence and the team's technical product, and operations skills.
The team at Lexion has made remarkable strides and is well-placed to make use of more recent AI generative capabilities to increase automation throughout enterprises.

About Point72

point72

Steven Cohen launched Point72 Asset Management, L.P., a global private investment company, in 2014. Its early-stage venture financing division is called Point72 Ventures. Point72 Ventures makes investments in businesses that are reshaping a variety of industries, such as enterprise software, fintech, digital health, and artificial intelligence.

The company, which has locations in Palo Alto, New York City, and Stamford, primarily makes investments in businesses in the Seed and Series A stages, providing both capital and resources to hasten growth. Along with providing access to Point72's larger network of resources and knowledge, Point72 Ventures also provides a platform for entrepreneurs to network and engage with professionals from a variety of industries.

Conclusion

The success of Lexion's recent funding round proves that AI-powered software is increasingly critical for modern legal teams to streamline their work processes, reduce errors and save valuable time.

This is just the beginning of what AI can do for the legal industry, and as more firms recognize its benefits, we expect to see continued investment ininnovative platforms like Lexion.