Legal Generative AI Assistant Spellbook Raises $10.9M and Rebrands from Rally
Generative AI assistant for lawyers startup Spellbook has raised $10.9 million in a funding round led by Moxxie Ventures. The startup has also officially changed its name from Rally to Spellbook, acknowledging how Spellbook and generative AI are at the center of the company’s future strategy.
Spellbook works as a Microsoft Word extension, capable of composing and analyzing contracts and other legal documents. The AI can then ‘cast spells’ to perform tasks like offering advice on adding new clauses, editing existing language, and otherwise improving the text within the context of the document as a whole. For contracts, that includes pinpointing where there is room for negotiation. Spellbook employs OpenAI’s GPT-4 large language model to power its tools, an upgrade from its initial GPT-3 reliance. The startup claims that the AI raises the client load a lawyer can handle by 30% and that more than 600 legal teams are use Spellbook, with 53,000 customers on the waitlist.
“Spellbook is focused on empowering lawyers with AI tools that effortlessly assist them throughout their normal course of work,” Spellbook CEO Scott Stevenson said. “It’s clear that AI will fundamentally transform every industry, and the explosive demand we’ve seen for Spellbook made it obvious that our approach has caught on. This round of funding is further proof of our thesis – we’re excited to give lawyers more time to focus on thoughtful work and avoid drudgery, all while reducing errors and increasing accuracy.”
Spellbook isn’t alone in combining generative AI with legal services. Legal tech startup Lexion offers AI-powered contract and business management services and has raised about $45 million in total, while OpenAI’s led a $5 million round for another legal tech startup called Harvey through its OpenAI Startup Fund.
“We think that chat-based interfaces like ChatGPT are just the tip of the iceberg,” Spellbook Chief Experience Officer Matt Mayers said. “We think of Spellbook like a tailwind for the lawyer, swooping in to help them with their work before they even know they need a hand. This keeps the lawyer in the driver’s seat, but helps them move much faster.”