Legal technology company Everlaw Inc. can now add Menlo Ventures to a list of high-profile investors that already includes a former acting solicitor general of the United States and Silicon Valley venture capital firm Andreessen Horowitz.
The Berkeley, California-based company raised $25 million in Series B financing led by Menlo Ventures, the company said June 28. Its press release also noted that Neal Katyal, who served as acting solicitor general under President Obama, is an investor.
There are human costs to having a bad discovery system, Katyal, who is now a Washington-based partner at Hogan Lovells, told Bloomberg Law. “I see it all the time.”
The last thing anyone wants is for young lawyers to spend Friday and Saturday nights “tearing their hair out” while trying to get their e-discovery work done, he said.
Everlaw’s intuitive interface can help lawyers quickly find what they need even if they don’t have a strong technical background, Katyal said.
Finding the Needle in the Haystack
Everlaw isn’t the only legal technology company to get a large infusion of cash this year.
Earlier this month, Leeds Equity Partners LLC said that it “completed a significant strategic investment” in Exterro Inc., a Beaverton, Oregon-based e-discovery software provider. San Francisco-based Logikcull, a cloud-based e-discovery platform, in January said it raised $25 million in Series B financing led by venture capital firm New Enterprise Associates.
The funding will go to a little bit of everything, AJ Shankar, co-founder and CEO of Everlaw, told Bloomberg Law. Some of the investment will go towards improving Everlaw’s artificial intelligence-powered analytics and its “Story Builder” feature that helps attorneys organize information into narratives.
“We are growing really quickly,” and the investment will allow Everlaw to stay ahead of the curve, he said.
“Evidence is the lifeblood of any case,” he said. But among an organization’s millions of documents, perhaps only 0.1 percent actually matter. Finding that small subset is a problem that is only going to get harder and more technical, he said.