Artificial intelligence startup Ivo announced a $55 million funding round on Tuesday, led by existing investor Blackbird.
The Series B financing values the company at roughly $355 million, according to sources familiar with the matter, as reported by Forbes.
New investors participating include Costanoa Ventures, Uncork Capital, Fika Ventures, GD1, and Icehouse Ventures.
The funding is aimed at accelerating the development of Ivo’s legal services platform and expanding its sales team to meet growing market demand.
Rising Demand for Legal Automation
Investor interest in legal AI has surged, driven by the need for technology that automates repetitive tasks for law firms handling corporate clients.
Last year, legal AI startup Harvey raised $160 million and was valued at $8 billion, reflecting the appetite for this sector.
Ivo, which counts Uber, Shopify, IBM, Reddit, and Canva among its clients, provides tools that accelerate contract review.
The company said revenue has increased sixfold since its last funding round in February 2025.
Unlocking Insights from Legacy Contracts
Ivo’s platform also helps businesses analyze older deals, offering insights into how negotiating positions and risk profiles have evolved, CEO and co-founder Min-Kyu Jung told Reuters.
“Increasingly, the trend has been for more complex agreements,” Jung said.
He noted that demand has shifted from high-volume, simple contracts to more intricate agreements requiring sophisticated review.
Despite AI’s potential, high-profile errors, such as fake citations in legal filings, have highlighted risks of relying solely on automated tools.
In 2024, a Virginia judge required lawyers to explain why they should not be sanctioned for submitting filings containing what appeared to be fictitious cases.
A Multi-Task Approach to AI Accuracy
Jung explained that Ivo’s accuracy comes from dividing contract reviews into more than 400 separate AI tasks rather than a single process.
He stated this approach outperforms standard chatbots and reduces the risk of AI “hallucinations.”
Based in San Francisco, Ivo plans to use the new funding to triple its current staff of 60 employees by the end of 2026.
The company’s growth reflects both the increasing complexity of corporate contracts and the demand for AI-driven efficiency in legal services.
