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Sandstone has raised $30 million in a Series A funding round led by Lightspeed Partners and Sequoia. The company focuses on integrating AI tools for in-house legal teams. This funding will help accelerate AI adoption in legal workflows, improving efficiency and accuracy.
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Sandstone's Series A was led by Lightspeed Partners, with participation from Sequoia.
With Harvey and Legora burning through eight-figure funding rounds, legal tools have proven to be one of the fastest-growing and most hotly contested verticals among AI startups. But while those tools focus on private practice, some startups believe there’s still plenty of the legal market that isn’t being served.
Sandstone, which announced $30 million in Series A funding on Tuesday, is focused on an overlooked slice of the legal space, focusing on the tangle of overlapping tasks and systems facing in-house legal teams.
The Series A was led by Lightspeed Venture Partners, with participation from existing investors at Sequoia, Mantis VC, SV Angel, Operator Partners, Kearny Jackson, Daybreak Ventures, Litquidity Ventures, and others. The Series A comes just six months after a $10 million seed round in January, which was led by Sequoia.
As the founders describe it, Sandstone’s initial user base will be the legal departments at small and mid-sized businesses.
“They open up their laptop in the morning, they see all the work that’s come in through different intake channels, whether that’s Slack messages, emails, Jira,” co-founder and chief operating officer Jarryd Strydom told TechCrunch. “AI helps them route and triage that work appropriately, and then they can build custom workflows on top of our platform to actually execute work, whether that’s drafting, reviewing, or providing legal analysis.”
The result has little in common with legal reasoning systems like Harvey and Legora. Instead, Sandstone focuses on relationship management and workflow automation, both tuned to the unique demands of in-house legal work. As Strydom sees it, the focus on in-house legal departments allows Sandstone to provide value where more generalized AI deployments often flounder.