The LegalTech Fund Closes $110 Million Second Fund, Nearly 4X Its First

Yesterday, I reported here on the TLTF Summit last week in Austin, “the Davos of legal tech.” Now there is more news from its organizer, the venture capital firm The Legaltech Fund: It announced yesterday that it has closed its second fund at $110 million, representing a nearly fourfold increase over its inaugural $28.5 million fund raised in 2021.

The closing is particularly notable given the challenging venture capital environment that has prevailed over the past two years, with many VC firms struggling to raise new funds amid economic uncertainty and a slowdown in technology investments.

The global law firm McDermott Will & Schulte returned as lead investor with a $10 million commitment, while legal technology and services company Consilio joined as a new lead investor. Other strategic investors in the fund include Clio, Docusign, Harbor, Orrick and Thomson Reuters Ventures.

The fund, which launched in 2021 as the first venture capital fund dedicated exclusively to legal technology, has invested in more than 80 companies across its two funds. Fund II will continue to focus on early-stage startups globally, investing in rounds up to Series A.

“We launched TLTF to help entrepreneurs transforming the world of law realize their vision, and we are doing just that,” said Zach Posner, co-founder and managing partner of The LegalTech Fund, in the announcement.

The fund’s portfolio spans the full spectrum of legal technology, from litigation support to legal operations and access to justice. Recent investments include Wexler’s AI platform for complex litigation, Entegrata’s AI and analytics tools for legal teams, Flo Recruit’s legal hiring platform, and HelloPrenup’s accessible prenuptial agreement service.

The successful fundraise reflects growing investor confidence that legal technology represents a durable investment category. The fund pointed to the legal industry entering what it described as a sustained era of technology-driven transformation, drawing parallels to the earlier waves of innovation that reshaped financial services, healthcare, and insurance through technology.

For McDermott Will & Schulte, the investment represents a strategic bet on staying ahead of industry disruption. “The world of law is at an inflection point that will transform our industry,” said Ira Coleman, the firm’s chairman. “We’re committed to driving that disruption, not being disrupted by it.”

The fund’s anchor investors gain more than just financial returns. Their involvement provides early access to emerging technologies and the opportunity to shape products that could transform their own operations and client services.

Beyond its investing activities, The LegalTech Fund has established itself as a convener in the legal tech ecosystem through initiatives including the TLTF Summit and The LegalTech Lab.