The legal technology sector continues to attract significant investor attention as artificial intelligence reshapes how legal work is performed. This week, legal AI startup Ivo announced it has raised $55 million in a Series B funding round, marking one of the largest recent investments in AI-driven contract review technology.
The new funding highlights increasing demand from
corporate legal departments seeking faster, more reliable ways to analyze contracts, manage risk, and
reduce the time spent on manual legal review.
Strong Investor Support Signals Confidence in Legal AI
The funding round was led by existing investor Blackbird, with participation from Costanoa Ventures, Uncork Capital, Fika Ventures, GD1, and Icehouse Ventures. Following the raise, Ivo is valued at approximately $355 million, according to people familiar with the transaction.
The latest investment reflects a growing belief among venture capital firms that artificial intelligence can meaningfully transform legal operations, particularly in high-volume contract environments where speed and accuracy are critical.
Legal AI has become one of the fastest-growing segments within legal technology, as organizations look to reduce costs, improve efficiency, and manage increasing
contract complexity without expanding legal headcount.
How Ivo’s Technology Works
Founded in San Francisco, Ivo provides an AI-powered contract intelligence platform designed primarily for in-house legal teams. Unlike traditional document review tools, Ivo’s software analyzes contracts by breaking them down into hundreds of highly specific review tasks, allowing the system to focus on individual clauses, risks, and obligations.
This approach is intended to improve accuracy and reduce the chance of errors that have plagued some generative AI tools. Rather than producing broad summaries, the platform identifies specific contractual issues, flags deviations from company standards, and highlights potential legal risks.
According to Ivo’s leadership, this task-based method enables the system to deliver more consistent and defensible results, which is essential for legal teams operating in regulated industries.
Growing Enterprise Customer Base
Ivo’s technology has already gained traction among major corporate clients, including Uber, Shopify, IBM, Reddit, and Canva.
These companies use Ivo’s platform to review a wide range of commercial agreements, from vendor contracts to enterprise licensing deals. By automating repetitive review tasks, legal teams can focus more time on strategic decision-making and complex negotiations.
Since its previous funding round in early 2025, Ivo reports that its revenue has grown approximately sixfold, driven by expanding enterprise adoption and larger contract volumes.
Expansion Plans and Hiring Growth
With the new capital, Ivo plans to significantly expand its workforce over the next year. The company currently employs about 60 people and expects to triple its headcount by the end of 2026.
Much of the hiring will focus on engineering, product development, and customer support, as the company works to enhance its AI models and scale its platform for larger corporate clients.
Executives say the funding will also support continued research into improving AI accuracy, security, and compliance key concerns for legal departments evaluating new technology.
Legal AI Adoption Continues to Accelerate
The investment in Ivo comes amid a broader surge in funding for legal AI tools.
Law firms and in-house legal departments are increasingly adopting AI solutions to manage growing workloads while maintaining high standards of accuracy.
At the same time, the industry remains cautious. Several high-profile incidents in recent years have shown that poorly implemented AI tools can generate incorrect legal citations or unreliable outputs. These concerns have led many legal teams to favor platforms that emphasize transparency, task-specific analysis, and human oversight.
Ivo’s approach aims to address these concerns by focusing on precision and structured analysis rather than open-ended text generation.
The Future of Contract Review Technology
As artificial intelligence becomes more deeply integrated into legal workflows, contract review is expected to remain one of the most heavily automated areas of legal practice. Investors see strong potential in platforms that can help companies manage risk, accelerate deal cycles, and reduce operational costs.
With its latest funding round, Ivo is positioned to play a leading role in shaping how AI is used in corporate legal departments. The company’s rapid revenue growth and expanding customer base suggest that
demand for contract intelligence technology is likely to continue rising in the years ahead.
For legal professionals, the continued growth of AI-driven platforms like Ivo signals a shift toward more technology-enabled legal operations one where lawyers spend less time on routine review and more time on high-value strategic work.
Ready to build your career at the intersection of law and technology? Explore the latest legal and legal tech job opportunities on LawCrossing, where thousands of exclusive attorney, in-house counsel, and legal innovation roles are updated daily.
Visit LawCrossing today to take the next step in your legal career.
