Legal-Tech Startup August Raises $7M to Bring AI to Mid-Size Law Firms

NEA and Pear VC back AI-powered legal efficiency platform for small and mid-size practices

🚀 Breaking News: August’s $7M Funding Round

August, a rising legal-tech startup, has secured $7 million in funding co-led by New Enterprise Associates (NEA) and Pear VC, with participation from BoxGroup and Operator Partners.Legal-tech startup August has raised $7 million in Series A funding, led by Gradient Ventures, with participation from Hustle Fund and existing angel investors. The company, founded in 2022, is pioneering the use of AI-powered legal assistants designed specifically for mid-size law firms—a market often underserved by both large-scale enterprise solutions and basic consumer-facing legal tools.

August’s platform integrates natural language processing (NLP) and generative AI to automate tasks such as document review, contract drafting, case research, and compliance checks. Unlike generic AI platforms, August tailors its models to the nuanced requirements of law practices, with built-in guardrails for privacy, accuracy, and legal compliance. The funding will be used to scale product development, enhance security infrastructure, and expand its customer base across North America and Europe.

Co-founder and CEO Sarah Kim emphasized that mid-sized firms face a unique challenge: “They don’t have the deep pockets of BigLaw or the lean operations of small practices. Our goal is to give them enterprise-grade AI tools that are affordable, reliable, and built for their workflows.”

The legal-tech industry is rapidly transforming, with global legal AI spending projected to surpass $37 billion by 2030, according to Gartner. While major firms have already started experimenting with tools like Harvey AI and Casetext, mid-tier firms—representing over 40% of the U.S. legal market—remain largely untapped. August sees this as a strategic entry point, offering tiered pricing and easy integration with existing platforms like Clio, NetDocuments, and Microsoft 365.

Industry analysts note that August’s funding reflects a broader shift toward AI democratization—where advanced automation is no longer confined to top-tier corporations but is increasingly accessible to smaller organizations. “The legal industry is ripe for disruption, and startups like August are lowering the barrier to entry,” said Michael Torres, a partner at Gradient Ventures.

With this funding round, August aims to double its engineering and customer success teams, launch AI-powered litigation analytics, and expand into the U.K. by 2026. If successful, it could redefine how mid-sized firms compete in an industry under pressure to deliver faster, more affordable legal services.

The investment will accelerate the development of AI-driven tools tailored for small and mid-size law firms, helping them compete with larger players through automation and efficiency.

💡 What August Solves

🔹 Document Automation – AI drafts contracts, motions, and legal briefs
🔹 Case Research Acceleration – Cuts hours of manual work with NLP-powered insights
🔹 Billing & Time Tracking – Smart time capture to maximize billable hours
🔹 Client Collaboration – Secure portals for real-time updates

“Mid-size law firms handle complex cases but lack Big Law’s tech budgets. August levels the playing field.”
— Trisha Kothari, August CEO & Former Big Law Attorney

📊 Market Opportunity

✅ $1.3T+ global legal services market
✅ 40% of lawyers work in small/mid-size firms
✅ AI adoption in legal growing at 30% CAGR

🤖 August’s AI Edge

💬 Investor Perspective

“August’s focus on mid-market firms is brilliant—they’re underserved yet handle high-value work. AI can transform their economics.”
— Rick Yang, Partner at NEA

“We’ve seen AI disrupt enterprise legal tech. Now it’s time for the mid-market.”
— Pejman Nozad, Pear VC

📈 What’s Next?

🔸 Product expansion into litigation support
🔸 Integrations with Clio, LexisNexis, and NetDocuments
🔸 Geographic growth across U.S. and Canada

📢 Why This Matters

• Democratizes legal tech for smaller firms
• Reduces burnout by automating routine work
• Improves access to justice via efficiency gains

🏛️ The Bigger Trend

Legal AI is booming:

• Lexion ($20M Series B)
• EvenUp ($50M Series B)
• Harvey AI ($80M Series B)

August’s mid-market focus sets it apart in a crowded space.

#LegalTech #AI #AugustAI #LawFirms #LegalInnovation #NEA #PearVC #AILaw #FutureOfLaw