Legal tech startup, Darrow, has recently raised $35 million in Series B funding to further develop its AI-based data engine. The engine is designed to parse public documents and identify potential class action lawsuits across various legal domains such as data privacy violations and environmental contamination. With active cases resulting from its data insights currently valued at around $10 billion, Darrow plans to use the funding to expand its team, add more legal domains to its search and analytics tools, as well as enhance its large language models and other technological assets.
Key Takeaway
Darrow, an AI-based legal tech startup, has raised $35 million in funding, bringing its total funding to nearly $60 million. The company’s AI data engine utilizes publicly-available documents to identify potential class action lawsuits, with active cases currently totaling around
0 billion. Darrow plans to use the funding to expand its team, add more legal domains to its search tools, and enhance its technology assets.
Addressing the Growing Demand for Class Action Lawsuits
In a market worth tens of billions of dollars, the United States has a significant number of lawsuits, making it an attractive space for legal tech startups. Darrow’s AI-based data engine addresses the growing demand for class action lawsuits by providing lawyers with a proactive approach to finding and developing new cases to pursue. By ingesting and analyzing thousands of publicly-available sources, such as newsfeeds, social media, and regulatory complaints, Darrow’s platform connects the dots between data and evidence of legal violations, providing insights into potential litigation outcomes and their value.
Changing the Perception of Class Action Lawsuits
Class action lawsuits are often seen as expensive and risky, detering many law firms from taking them on. Darrow aims to change this perception by enabling lawyers, regardless of their size, to identify and fight for impactful cases. The startup’s mission is to be the go-to platform for law firms, connecting them with cases that align with their values and have the potential for significant societal impact. Despite focusing initially on lawyers, Darrow also plans to incorporate individuals into its long-term vision, creating a portal for them to find relevant data and report their own experiences.
Support from Investors and Future Opportunities
Darrow’s recent funding round, led by B2B specialist Georgian, with participation from Entrée Capital and NFX, showcases the investors’ recognition of the company’s potential to transform the class action and mass action market, valued at $63 billion. The startup’s mission-driven team of lawyers, technologists, and product developers, combined with its innovative language model, have made it an attractive investment opportunity. As Darrow continues to grow and expand its offerings, it aims to bridge the gap in the market and provide lawyers and consumers with the tools they need to pursue justice and drive positive change.
