LegalOn Raises $50M Series E to Expand AI Legal Tools, Partners with OpenAI

Legal AI startup LegalOn Technologies, headquartered in Tokyo and San Francisco, has secured $50 million in Series E funding to boost the global rollout and development of its AI-driven contract review tools. The round saw participation from World Innovation Lab, Mizuho Bank, Shoko Chukin Bank, and Japanese law firm Mori Hamada & Matsumoto, with Goldman Sachs Alternatives’ growth equity division leading the investment. With this latest funding, LegalOn’s total capital raised now exceeds $200 million.

The company’s AI-powered platform is used by over 7,000 organizations to speed up contract reviews, reportedly reducing review time by up to 85%. With the new funding, LegalOn plans to scale its agentic AI products and strengthen its go-to-market strategy, positioning itself as a key player in the legal tech space.

Founded in 2017 by former lawyers Nozomu Tsunoda and Masataka Ogasawara, LegalOn started as LegalForce in Japan before rebranding globally. The company aims to streamline legal workflows using AI for faster and more accurate results. Its main product, called Review, helps legal teams analyze contracts, flag risks, and recommend changes based on over 50 prebuilt attorney-drafted playbooks.

LegalOn claims that its AI tools can cut contract review time by up to 85%, while also improving consistency and legal accuracy. The software supports both third-party documents and internal drafts, and has been adopted by over 7,000 organizations, including 25% of public companies in Japan and a growing base in the U.S. and U.K., where business has quadrupled over the past year.

To extend its capabilities beyond contract review, LegalOn has recently launched a matter management module that enables legal teams to track and manage contract requests from various platforms, including Slack, email, and web forms. It also introduced My Playbooks, enabling companies to build custom guidelines for contract reviews aligned with internal policies.

The company also announced a technical partnership with OpenAI, giving it early access to ChatGPT Enterprise and API tools. LegalOn engineers are now working closely with OpenAI’s team to build agentic AI tools specifically designed for legal work. These agents will aim to streamline tasks across the legal workflow, from intake to completion.

LegalOn’s global CEO, Daniel Lewis, highlighted that the collaboration with OpenAI positions the startup to push the limits of AI innovation in legal tech. He stressed that while AI won’t replace lawyers, it can significantly reduce the burden of repetitive tasks, allowing legal professionals to focus on higher-value decisions.

Investor confidence in legal AI continues to grow, though still selectively. Goldman Sachs’ renewed interest follows its previous investment in Clio’s $900 million round. With LegalOn’s strong legal foundation and early technical access to advanced AI models, the company is aiming to shape the future of legal operations worldwide.

Image credits: LegalOn