Milan-based Lexroom.ai has raised €2M in seed funding to enhance its AI-powered legal research platform. The company aims to improve legal workflows through AI technology, focusing on research, document analysis, and automated drafting. The funding will be allocated towards team expansion, product development, and market growth, particularly in Europe. With increasing demand for AI-driven legal solutions, Lexroom.ai is positioning itself as a key player in the evolving legal tech sector.
Lexroom.ai had previously secured €500K in pre-seed funding less than a year ago. The latest investment round is led by Belgian B2B SaaS investment firm Entourage, with participation from Verve Ventures, Vento Ventures, Banyan Ventures, and X-Equity advised by FNDX. Angel investors such as Joe Zadeh, former VP of Product and Head of Experiences at Airbnb, also contributed. The company has rapidly expanded its user base, reaching nearly 1,500 legal professionals and achieving approximately €1M in annual recurring revenue.
How does Lexroom.ai assist legal professionals?
Lexroom.ai enables legal professionals to conduct research using natural language queries, providing responses with citations and sources. The platform’s features include tools for legal research, document analysis, and automated drafting of legal documents. The company collaborates with law firms such as Gatti Pavesi Bianchi Ludovici for corporate law, Ichino Brugnatelli & Associati for labor law, and WST Law & Tax Firm for tax law. These partnerships help refine the platform’s capabilities to better serve legal practitioners.
Co-founder Paolo Fois shared the company’s commitment to improving efficiency in the legal industry.
“Since our journey began at Vento Ventures’ venture originator in 2023, our vision has been to empower legal professionals by optimising their most valuable resource: time.”
He emphasized the importance of the new investors in supporting Lexroom.ai’s growth strategy, aiming to make the platform widely accessible to law firms of all sizes.
What will the funding be used for?
The newly acquired funding will support Lexroom.ai in expanding its product to more legal professionals and strengthening its presence in Southern Europe. The company plans to increase its AI development team in Europe, with a goal of reaching 35 employees by the end of the year. More than half of this workforce will be dedicated to product development to refine and expand the platform’s capabilities.
Investor Pieterjan Bouten of Entourage underlined the platform’s growing role in the legal industry.
“Lexroom.ai is addressing a critical pain point for lawyers, rapidly becoming an indispensable tool for legal professionals. The speed at which Lexroom is scaling and the product usage metrics are a testament to the urgent need for its solutions and the strength of its execution.”
He added that Entourage is eager to support Lexroom.ai’s continued expansion.
Legal technology has seen rapid advancements in recent years, with AI-driven solutions increasingly adopted by firms seeking greater efficiency. While earlier legal tech platforms focused on digitizing documents and basic automation, newer solutions such as Lexroom.ai introduce advanced AI research tools. The company competes with other AI-powered platforms that serve similar functions, but its focus on integrating citations and sources into its responses distinguishes it from some competitors.
Lexroom.ai’s expansion reflects a broader trend in the legal tech industry, where AI is being leveraged to streamline workflows and reduce manual research time. The success of AI-driven platforms depends on the accuracy of their responses and their ability to integrate with legal professionals’ existing workflows. As Lexroom.ai continues to develop its offerings, its impact on the legal sector will depend on how well it meets the evolving needs of legal practitioners.
