New Company that Develops AI for Law Firms Raises a total $165Million in Funding

• Luminance raises $75 million to expand its AI-driven legal tech platform.
• Luminance now serves over 700 clients, including major companies like Rolls-Royce and Lamborghini

Generative AI has gotten much better at understanding complex texts, and that’s been especially helpful in the legal world. This has led to a rise in new legal tech startups in the past year, all benefiting from advancements in AI. [earn]

One of the most recent success stories is Luminance, a legal tech startup that raised $75 million in a funding round led by Point72 Private Investments. This funding is one of the largest for a legal AI company in the UK and Europe. Luminance now says it has raised over $115 million in the last year and $165 million in total. [earn]

Luminance was created by two Cambridge academics, Adam Guthrie and Dr. Graham Sills. The company uses a special AI system called the “Panel of Judges”, which helps businesses with contracts, from creating and negotiating them to reviewing them after they’re signed. Unlike other legal tech companies, Luminance doesn’t just use common AI models but has its own AI model, called LPT (Legal Pre-trained Transformer), trained on over 150 million legal documents. This makes Luminance stand out because its model is more specialized for legal work and is considered more reliable. [earn]

Luminance’s CEO, Eleanor Lightbody, explains that their platform is different from others because it uses multiple AI models to check each other’s work, giving clients the most accurate and transparent results. The company now has over 700 clients, including big names like Rolls-Royce, LG Chem, and Lamborghini, and has expanded its presence across North America with new offices in cities like San Francisco and Toronto.

[earn]