Ivo raises $16M Series A to automate contract review for lawyers

Legaltech startup Ivo has secured $16 million in Series A funding to advance its AI-powered contract review technology for corporate legal teams.

Core technology and value proposition: Ivo’s AI platform scans and analyzes legal contracts to identify problematic clauses and suggest revisions, streamlining the contract review process for in-house legal teams.

• The technology leverages generative AI to automatically identify clauses that deviate from standard terms or present unacceptable risks
• The system provides suggested revisions that human lawyers can review before returning to counterparties
• Ivo aims to balance protecting organizational interests while avoiding unnecessary changes that could delay negotiations

Market traction and impact: Since launching in April 2023, Ivo has demonstrated significant commercial success and measurable benefits for clients.

• The company has secured over 150 customers, including major brands like Canva, Weightwatchers, and Eventbrite
• At Quora, the platform reduced contract approval times from 4 days to 2 days
• First-pass review times improved from 11 hours to 5 minutes according to Quora’s legal operations team

Funding and expansion plans: The Series A investment brings Ivo’s total funding to $22 million and will fuel growth initiatives.

• Costanoa Ventures led the round, with participation from Fika Ventures, Uncork Capital, and others
• The company plans to expand beyond its primarily US-based customer footprint
• A new Search Agent feature allows organizations to scan existing contract libraries for obligations and precedents

Competitive landscape: Ivo operates in an increasingly active legaltech market focused on contract automation.

• Competitors include established players like Icertis and Ironclad
• Ivo differentiates itself through sophisticated generative AI capabilities that go beyond basic automation
• The company emphasizes accuracy and precision in its contract redlining capabilities

Future implications: The adoption of AI-powered legal tools like Ivo signals a significant shift in how corporate legal departments handle routine contract work, potentially reducing costs and accelerating business operations while maintaining quality standards.