According to analysis by Law360 Pulse, investors significantly upped the ante in legal technology last year with record-setting funding. Legal tech companies raised a total of nearly $5 billion ($4.98 billion) in 2024. This figure represents a 47% increase over the $3.37 billion raised in 2023 and is the highest recorded since Law360 began tracking such investments in 2021.
The investment community’s increased focus on the legal sector is likely fueled at least in part by interest in the potential for artificial intelligence, although not all investments were focused exclusively on AI-enabled platforms.
The area that received the biggest influx of funds is legal practice management, with $1.4 billion, the bulk of which went to Clio ($900 million) in the largest legal tech capital raise in 2024. Other areas in which companies received significant investments include information services ($655 million); governance, risk and compliance ($411.3 million); and legal document software ($359.2 million).
Legal Tech Cos. Broke Funding Records In 2024 [Law360 Pulse]