Everlaw Raises $62 Million, Brings in Alphabet Equity Fund as Investor
Everlaw's new funding round, which includes participation from the private equity fund of Google parent company Alphabet, is yet another sign of growing investor interest for end-to-end legal technology and services companies.
March 10, 2020 at 03:04 PM
3 minute read
Litigation technology and e-discovery software provider Everlaw announced today that it has closed on a $62 million Series C funding round.
The new funding round sees Everlaw bring a new investor, CapitalG, into the fold while also garnering additional investment from previous investors Menlo Ventures, Andreessen Horowitz and K9 Ventures. CapitalG, which is the private equity fund of Google parent company Alphabet, and Menlo Ventures led the funding round. The round represents more than double the $25 million investment Everlaw received in June 2018.
Everlaw CEO and founder AJ Shankar said the company's mandate with the new funding "is just to do more of what we've been doing and do it better and faster," which includes hiring across the company and further developing its product line.
Shankar noted that Everlaw will specifically "continue to invest in [its] Story Builder suite of post-discovery collaborative tools" and "double down" on its expansion into London while also "touring Europe and the Asia-Pacific region."
He said the company also expects to grow significantly in the months to come. "We're just north of 200 people now and probably will be in the mid-300′s next year," he said.
Alongside new funding, Everlaw also announced its platform has been authorized under the Federal Risk and Authorization Management Program (FedRAMP) for use by the U.S. Department of Justice.
Though Everlaw can only be used by the DOJ, Shankar said the company is continuing to work with the FedRAMP Program Management Office. He explained, "I think that should be expanding in the next month or so to get a federal government-wide authority to operate."
Everlaw's funding is yet another example of strong investor interest in legal technology companies that expand beyond a particular niche such as e-discovery to offer more end-to-end legal services.
"We already have expanded past e-discovery for years," Shankar said, noting that Everlaw aims to provide comprehensive litigation solutions. "When you think about the entirety of litigation, not just discovery, but how all the work is done … there isn't an underlying technical fabric to facilitate that domain specific work." However, he added, "we're building that—all tools to manage your document and data but also your work product and workflow and all your communication and collaborating with your team."
To be sure, other legal tech providers have found similar successes in expanding their services. Early last year, e-discovery technology and services provider DISCO received $83 million in funding to expand beyond the e-discovery and U.S. market, while analytics company Ayfie, which launched its own proprietary e-discovery platform in mid-2018, raised $10 million in August 2019 on the heels of its expansion into the financial sector and beyond.
Everlaw's funding also comes as the e-discovery industry continues to consolidate. In the first month of 2020, Legility acquired e-discovery solution provider Inventus, whose September 2019 launch of the Zenith platform made it a competitor to Everlaw. In January, KLDiscovery also continued its acquisition spree by absorbing e-discovery platform Superior Document Services Inc.
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