Khosla Ventures leads $11M investment in Artificial intelligence startup Lexion for its AI-powered solution for contract management
We featured Lexion back in 2019 after the Seattle, Washington-based artificial intelligence startup that provides voice-operated and intelligent assistant for professionals, closed $4.2 million for its AI-powered solution for managing contracts. Lexion has witnessed rapid growth since our last story.
To further support the growing demand for its product, Lexion announced today it has raised an $11 million Series A round led by Khosla Ventures, with participation from existing investors Madrona Venture Group and Wilson Sonsini, bringing the total invested to $15.2 million. In conjunction with the funding, Lexion also announced that Kanu Gulati from Khosla Ventures will join its board of directors.
In a news release, Lexion said it will use the new capital infusion to scale go-to-market functions, drive further AI and product innovation, and grow the team, with a mission to offer a simple contract lifecycle management system (CLMs) that just works.
Founded in 2017 by serial entrepreneur Gaurav Oberoi, AI technology leader Emad Elwany, and engineering veteran James Baird, the San Francisco, California-based Lexion aims to save professionals time on paperwork. Their first product LexiconMD helped healthcare professionals dictate their notes into e-medical records hands- and eyes -free. Lexicon AI is their new product, an intelligent, voice-based platform for lawyers, healthcare providers, and other professionals. Their speech recognition software has a high level of accuracy, as though a human was transcribing the information.
LexiconAI is built for lawyers, doctors, and other professionals who are frustrated with the valuable hours they lose filling out paperwork. LexiconAI empowers professionals by providing them with an intuitive, easy-to-use user interface that is hands and eyes-free. With LexiconAI, professionals can tackle their documentation at twice the speed of typing, saving time and money.
The startup is applying cutting-edge AI to ensure that companies don’t miss a “gotcha” clause, or spend hours of expensive outside counsel time in reviewing piles of contracts. Lexion’s platform can ingest all of a company’s contracts, automatically extract dozens of key terms, and deliver an organized repository of agreements that can be filtered, sorted, and searched across — all in a matter of hours. The company’s proprietary natural language processing (NLP) engine can rapidly be trained to extract previously unseen clauses or new document types, ranging from insurance agreements to commercial real estate documents.
“In-house lawyers spend far too much time on mundane tasks like checking if an active NDA exists, or manually filling out spreadsheets to track key dates and non-standard terms in their contracts,” said Gaurav Oberoi, co-founder and CEO of Lexion.
“What makes Lexion special, in this rapidly growing industry, is that it’s a sophisticated AI product that’s incredibly easy to use, accurate, and fast, and eliminates rote work by automatically pulling these key data points from contracts. The result is that legal teams spend a fraction of the time on administrative tasks, and more time helping their teammates in sales, finance, and procurement win deals and grow the business.”
According to Gartner, legal departments will increase their technology spend 300% by 2025, and yet only realize 30% of the potential benefit of their CLM investments because of the complexities of requirements gathering, change management, and user adoption. Oberoi believes that Lexion is perfectly poised to capture this demand by offering a pragmatic platform that solves immediate business needs through automation, and without unneeded complex features that go unused.
“We invested in Lexion because their team has the rare combination of deep technical expertise in building sophisticated AI systems and a proven track record in delivering SaaS applications that solve real problems,” said Vinod Khosla, founder of Khosla Ventures. “This combination of cutting-edge technology, with simple and practical application, is exactly how the value of AI will get realized in corporations and is why we think Lexion has a winning advantage in this space.”