AI-powered law firm Blackletter raises $6m to disrupt traditional billing

Securing the seed round

The US-Canadian technology-driven law firm Blackletter has successfully closed a $6m seed funding round. This investment was led by Lerer Hippeau, an early-stage investor, and Seven Stars, which specializes in legal funding. Other notable participants in the round included Maple VC, Garage Capital, and Ripple Ventures.

The funding comes with high-profile backing from several prominent figures in the artificial intelligence space. Investors included Aidan Gomez, Ivan Zhang, and Nick Frosst of Cohere, as well as Jae Lee, the CEO of Twelve Labs, and Sara Hooker, the CEO of Adaption Labs. These backers suggest a strong belief in the firm's ability to integrate frontier AI into professional services.

Blackletter plans to use the capital to scale its operations significantly. The firm intends to expand its proprietary platform while simultaneously growing its team of experienced lawyers and engineers. By hiring both technical and legal talent, the company aims to bridge the gap between complex software and practical legal practice.

A new legal architecture

At the core of Blackletter's operation is a proprietary software system known as Blackletter OS. This platform is designed to store specific knowledge and information about each individual client. It allows the firm to manage legal matters from the very first stages through to final completion, ensuring that data is centralized and accessible.

The firm combines this technology with a team of experienced lawyers to provide services in areas like corporate, commercial, financing, M&A, and employment. By using AI to handle many of the routine tasks, the firm can reduce the total amount of time lawyers spend on a single case. This efficiency is the primary driver behind their ability to offer faster services to their clients.

The founders designed the company to move away from what they describe as the old law firm model. According to CEO Jonathan Rosenbluth, the traditional structure often benefits senior partners rather than the clients or the working lawyers. Blackletter was built to be a strategic partner that provides real impact by leveraging technology to unlock new opportunities for businesses.

Fixed fees over billable hours

One of the most significant changes Blackletter introduces is its shift in how it charges for services. Instead of the traditional hourly billable rates that many businesses find difficult to predict, the firm charges fixed fees. This model provides clients with more certainty regarding their legal expenses from the start of a project.

The company argues that AI is the key to making this model sustainable for the firm. Because the software handles much of the data processing and information management, the firm can deliver high-quality legal work without the high overhead of manual labor. This allows them to provide strategic advice at a lower cost than many legacy firms.

This approach is part of a broader trend in the legaltech market, which has seen a wave of inbound investment this year. For example, another US AI-powered hybrid firm called Athena recently secured $2.5m in a pre-seed round. These investments indicate that the industry is moving toward a more tech-enabled, cost-efficient structure for corporate law.

Early traction and leadership

Since emerging from stealth mode in June, Blackletter has already built a significant client base. The firm reports attracting more than 75 early-stage and growth-stage companies and investors. Notable clients include Ada, Antidote, and Fanatics Betting & Gaming, as well as the AI firm Twelve Labs.

The leadership team brings a mix of software development and AI engineering expertise to the firm. Co-founders Jonathan Rosenbluth and David Stewart previously worked together at a software development firm called Oumi. During their time there, they served as interim chief product officer and head of AI field engineering, respectively.

Graham Brown, a managing partner at Lerer Hippeau, noted that the legal industry is ready for structural change. He highlighted that the Blackletter team combines native frontier AI experience with the ability to scale legal operations. This unique combination positions the firm to transform a massive legacy industry that has historically been slow to adopt new technologies.