Darrow, a data-for-justice platform, has raised $24 million in funding. F2 Venture Capital, Entrée Capital, NFX and Y-Combinator led the round.
(Tel-Aviv, 7 November, 2021): Data-for-Justice platform Darrow, founded just over a year ago, announced it has raised $24 million. The investments were led by F2 Venture Capital, Entrée Capital, NFX and Y-Combinator. The company currently operates in Israel and New York, with more than 40 employees.
Darrow has developed a machine-learning based platform which discovers legal violations by some of the biggest corporations in the world. Operating chiefly in the USA, the company is focused on locating violations which have caused damage to millions of people on average – the threshold for a potential class action lawsuit.
Everyday reports on corporations and their violations of basic rights are published – privacy breaches, consumer fraud, environmental pollutants, overcharges, unfair competition – these cover only a fraction of the legal violations committed by corporations around the world. Gila Hayat, Co-Founder and CTO: “Most violations are never discovered. The information is available, but the challenge lies in finding it within the vast amount of online data and assembling the legal story from the bits and pieces scattered across multiple sources. This is where we come in”.
“The law enforcement system extensively invests labor, time and resources to detect violations of the law,” explains Hayat, “And still, with the tools at its disposal, the legal system does not know how to uncover the cases which Darrow discovers and takes to court. We teach a machine to understand the law, identify harmful actions, and bring them to light and justice. This is a huge challenge that the legal system has not yet been able to deal with”.
Despite its legal focus, Darrow is not a LegalTech company. Whereas LegalTech startups find technological solutions aimed at changing the traditional way in which legal services are delivered, Darrow develops technologies aimed at solving some of the most fundamental issues preventing justice for all. The company is on a mission to discover every legal violation out there and resolve it.
“We are not satisfied with merely discovering these violations. In fact, we accompany law firms throughout the entire litigation process. Darrow provides the factual basis for the case, matches it with the best-suited law firm in order to bring it to court, and supports the firm throughout the proceedings. We help the process of recovering justice to become as quick and efficient as possible,” adds Hayat.
Darrow’s founders learned the difficulties of the judicial system from first-hand experience. Evyatar Ben-Artzi and Elad Spigelman met at the Hebrew University Law School in Jerusalem. After graduating, they clerked together at the Chambers of Israeli Supreme Court Justice Uzi Vogleman. During their work they learned that many violations of the law are not brought to court, even though the data is available online. When they shared their insights with Gila Hayat, a software engineer who formerly served in an elite technological unit of the IDF, she found that this was an intelligence gathering problem that could be solved in scale.
Darrow was founded in June 2020. Since then, the company has expanded to the USA and resolved hundreds of legal violations on a wide scale. “We are dreaming of a world where people don’t have to be concerned with ‘which company wronged them today’, but rather, they will know that somebody has their back”, Hayat concludes.
Darrow is already serving dozens of leading law firms and generating millions of dollars in revenue. The company mentioned that the capital raised will be dedicated to further product development, business operations and recruitment.