AI tech startup Lexion raises $20M Series B to expand its AI-powered contract management solution offerings
It’s been a while since we last featured artificial intelligence startup Lexion. The last time we wrote about the Seattle, Washington-based company was back in 2021 when it raised an $11 million Series A round led by Khosla Ventures, with participation from existing investors Madrona Venture Group and Wilson Sonsini.
Almost two years later, Lexion announced it has closed $4.2 million for its AI-powered contract management and operations workflow platform. The Series B funding round was led by Point72 Ventures, with participation from Citi Ventures, and existing investors Khosla Ventures, Madrona Venture Group, and Wilson Sonsini.
This latest fundraise brings Lexion’s total funding to more than $35 million, allowing the company to further enhance Lexion’s core platform and AI capabilities to help every department close deal faster. In conjunction with the funding, Lexion also announced that Sri Chandrasekar, Managing Partner at Point72 Ventures, will be joining its board of directors.
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.
Lexion, originally designed as a contract management system for lawyers by the Paul Allen Institute for Artificial Intelligence, has expanded its reach beyond legal work. Its advanced AI and automation features have streamlined processes in areas such as procurement, finance, sales, and technology.
The CEO of Lexion, Gaurav Oberoi, has stated that the company plans to use its new funding to enhance its AI capabilities further. Oberoi explained that Lexion aims to assist all teams in conducting business faster and more efficiently. The software’s award-winning AI and no-code automation features have accelerated legal tasks and gained popularity among other departments. The company now offers solutions for various functions, including vendor agreements, security reviews, RFPs, and employment offers.
Lexion experienced remarkable growth in 2022, with its revenue tripling for the third consecutive year. The company has attracted hundreds of corporate clients from different industries, including B2B technology, healthcare, consumer goods, manufacturing, and gaming. Lexion’s user-friendly interface and easy implementation have made it a popular choice for businesses looking to adopt new software.
“Our legal customers often comment how their sales teams don’t even notice they’re using a new technology because it integrates so well with their systems,” adds Oberoi.
Chandrasekar supports Lexion’s vision to expand into a horizontal operations workflow solution: “Lexion’s investment in AI, paired with the team’s technical, product, and operations expertise, positions the company well for broader adoption and cross-departmental expansion. We’re excited to support the team as they continue to innovate in the operations space.”
Matt Carbonara, Managing Director at Citi Ventures, celebrates how easy the Lexion platform is for larger organizations to adopt: “During our investment process, Citi reviewed Lexion’s solution and was impressed with its capabilities, ease of use, and seamless integration,” he says.