Legal software startup Spellbook collects $10.9m in financing

• Other backers included Thomson Reuters Ventures, Inovia Capital, The LegalTech Fund, Bling Capital, N49P, Concrete Ventures, Good News Ventures and Venture Newfoundland & Labrador
• The proceeds of the round will be used by the company for hiring, research and development and expansion
• Spellbook was originally launched by Rally in 2022

Spellbook, a Toronto and St. John’s, Newfoundland and Labrador-based legal software startup that has created a generative artificial intelligence contract drafting tool, has raised $10.9 million in financing.

Moxxie Ventures, a San Francisco-based seed-stage venture capital firm, led the round. Other investors included Thomson Reuters Ventures, Inovia Capital, The LegalTech Fund, Bling Capital, N49P, Concrete Ventures, Good News Ventures and Venture Newfoundland & Labrador.

Spellbook’s technology, powered by large language models like OpenAI’s GPT-4, uses legal datasets for optimal contracting performance. More than 600 customers across the legal industry use the tool to make more accurate and efficient legal decisions when drafting contracts and supporting documents.

The proceeds of the round will be used by the company for hiring, research and development and expansion.

“Spellbook delivers a platform that fundamentally transforms and accelerates processes for over 600 legal teams globally. They impressed us with their speed to market and explosive growth, in addition to their leadership in legal workflow automation with their Rally platform,” said Alex Roetter, a general partner at Moxxie Ventures, in a statement. “We’re excited about what generative AI will mean for legal and how Spellbook is meeting this moment, shipping features, onboarding customers and delivering value at a relentless pace.”

Spellbook was originally launched by Rally in 2022.