On Tuesday, artificial intelligence startup Ivo announced it raised $55 million in a Series B funding round. The investment was led by existing investor Blackbird and joined by new investors Costanoa Ventures, Uncork Capital, Fika Ventures, GD1, and Icehouse Ventures.
A source familiar with the matter stated the round valued the company at approximately $355 million. Ivo plans to use the capital to speed up development of its legal services platform and hire more sales personnel.
The company's customers include Uber, Shopify, IBM, Reddit, and Canva. Ivo's platform helps businesses review contracts more quickly. Since its last funding round in February of last year, the company said its revenue has increased sixfold.
CEO and co-founder Min-Kyu Jung told Reuters the AI startup also assists businesses in gaining insights from legacy deals, showing how their negotiating position and risk profile have changed. "Increasingly, the trend has been for more complex agreements," Jung said, noting demand has shifted from large-volume, simple contracts to more complicated work.
Jung explained that Ivo achieves high accuracy by breaking reviews into over 400 separate AI tasks instead of just one, a method he said outperforms standard chatbots.
The San Francisco-based company intends to use the new funds to triple its current headcount of 60 by the end of 2026.
Demand has grown for services that automate routine legal work for large corporations, fueling investor interest in the sector. Last year, legal AI startup Harvey was valued at $8 billion in a $160 million fundraising.
In recent years, some high-profile legal errors involving AI-generated fake citations have highlighted risks of relying on technology prone to hallucination. In 2024, a judge in Virginia ordered lawyers in a lawsuit to explain why they should not be sanctioned for submitting a filing that appeared to include "fictitious cases."