LinkSquares Inc., a startup using artificial intelligence to help companies more easily manage contracts, has raised $100 million in funding at a $800 million valuation.
LinkSquares announced the funding round this morning. G Squared was the lead investor, while G2 Venture Partners and a number of returning backers participated as well.
A large enterprise produces a significant amount of business documents as part of its day-to-day operations, including many contracts. Writing those contracts and then keeping them organized can involve a significant amount of manual work for a company’s legal department. LinkSquares provides an AI-powered platform that promises to reduce manual work for legal professionals.
LinkSquares’ platform includes a tool called Finalize that allows legal teams to create a library of contract templates. When team members are working on a new agreement, they can use a template instead of writing everything from scratch. Finalize also makes it possible to create a collection of ready-to-use contract clauses that can be assembled into new agreements.
The other core component of LinkSquares’ platform is a tool called Analyze. It uses AI to automatically generate a summary of a contract’s contents, thereby reducing the time that legal teams must spend reviewing agreements. There’s also a search tool that provides the ability to quickly navigate to a specific section of a contract.
LinkSquares allows companies to store contracts in a centralized cloud-based repository. To make organizing agreements easier, the startup’s AI algorithms extract key metadata such as the date when a document was added and its key focus areas. This metadata is used to help users more easily search for specific contracts in their firm’s document repository.
LinkSquares says that its platform is used by more than 500 legal teams at companies such as e-commerce giant Wayfair Inc. and Google LLC’s Fitbit smartwatch subsidiary. The startup told TechCrunch that strong customer demand helped it achieve annual recurring revenue of $20 million last year, a number it hopes to grow by 150% in 2022.
Along the way, LinkSquares intends to double its headcount to 500 workers. The new hires will help the startup grow its presence in international markets and develop new products to ease additional aspects of legal teams’ work.
“Today’s investment marks a significant new phase in our company’s growth,” said LinkSquares Chief Executive Officer Vishal Sunak. “CLM [contract lifecycle management] was the natural place to start. Over time, we aim to help legal leaders finally shed their reliance on single-point products, spreadsheets and email, all while continuing to surface the hidden data that is required to make informed decisions at the executive level.”
LinkSquares says that it’s addressing a growing market opportunity. According to research from Gartner cited by the startup, legal departments are set to triple their technology budgets by 2025.