Khosla Leads $11 Million Series A Investment in Lexion
With funding, Lexion doubles its mission to simplify the lives of best-in-class automation and AI legal teams.
FREMONT, CA: Lexion, an artificial intelligence-powered contract management system, announces an oversubscribed $11 million Series A round led by Khosla Ventures and Madrona Venture Group, and Wilson Sonsini, bringing the total investment to $15.2 million. Kanu Gulati of Khosla Ventures will join the Lexion board of directors. The Seattle-based company intends to use the funds to scale its go-to-market functions, accelerate AI and product innovation, and expand its team, all to provide a simple contract lifecycle management system (CLMs) that works.
Lexion delivers an intuitive system supported by a cutting-edge, AI-powered backend and is simple enough for entire organizations to adopt in days.
“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,” says 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.”
Gartner predicts that legal departments will increase their technology spending by 300 percent by 2025 but will only realize 30% of the potential benefit of their CLM investments due to the complexities of requirements gathering, change management, and user adoption. Oberoi believes Lexion is well-positioned to capitalize on this demand by providing a pragmatic platform that automates the resolution of immediate business needs while avoiding unnecessary 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,” says 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.”
“Lexion is an incredible addition to our toolkit, saving my team hours in filing, finding, and reporting on contracts,” says Nathan Garnett, General Counsel at OfferUp. “Not only was it quick to get up and running with all of our legacy agreements, but it’s also easy enough to use that we didn’t have to spend time on user training and rollout. Their integration with e-signature means all contracts are automatically filed away, and my team can focus on helping drive business results, instead of on administrative tasks.”