Luminance has raised $40 mn in Series B funding to further its use of large language models (LLMs) which are predicted to automate significant portions of work currently done by paralegals.
The financing round was spearheaded by March Capital, with contributions from National Grid Partners and previous investors such as Slaughter and May.
March Capital, managing over $1.65 bn across four funds, targets companies that enhance digital transformation through cloud-based software, automation, AI, and IT infrastructure.
The company’s legal LLM streamlines the generation, negotiation, and analysis of legal documents. This includes detecting unusual clauses in contracts, suggesting alternative language, identifying compliance issues, and highlighting key terms in executed agreements.
The software has notably reduced evidence review time by four weeks at London’s Old Bailey, marking a first in AI application within the court.
Luminance serves 600 organizations across 70 countries, including major players in manufacturing, insurance, and pharmaceuticals. The infusion of capital will primarily enable its expansion in the U.S. market (see about Generative AI — Emerging Risks & Insurance Trends).
Eleanor Lightbody, CEO of Luminance, remarked on the technological strides made over the past year, including the development of ‘Auto Mark-Up’ and AI tools that empower non-legal teams to handle contract negotiations.
The past 12 months have seen huge technical achievements from our Cambridge R&D hub. Developments such as ‘Auto Mark-Up’, which brings agreements into line with gold standards in a click, and AI-powered tools for non-legal teams to independently negotiate contracts, make Luminance the most advanced legal LLM available today.
Eleanor Lightbody, CEO of Luminance
She emphasized that the new funding would help Luminance enter new markets, increase its U.S. market presence—which currently represents over a third of its revenue—and reinforce its market leadership.
Hyun Koo, Partner at March Capital, expressed enthusiasm for Luminance’s role in resolving the inefficiencies of current legal workflows with its top-tier LLM, lauding the company’s extensive enterprise customer base and committed, technically adept team.
“We invest in AI-native companies solving large, mission critical problems. Given the inefficiencies and complexity that exist today in legal workflows, we immediately saw the potential for Luminance to drive efficiency with its industry leading LLM”, Hyun Koo says.
by Peter Sonner
