”Where Do the Dollars Go Next?” Funding, Adoption & Competition in LegalTech

“A foundational shift is underway in the legal sector – driven by generative AI, rising cost pressures, and a new wave of founder-led innovation,” wrote Alumni Ventures’ Clare Brandfonbrener this summer.

“But this won’t be a winner-take-all market,” she notes.

Amid rapid AI-driven change, big startup funding rounds, and intense competition for market share, in my latest edition of Venture Legal, I set out to examine the state of Legal Technologies in 2025 so far.

As Business Insider recently wrote in a report on how AI is transforming Legal Tech, “The question is where those dollars go next,” and that is the multi-million dollar question on the minds of LegalTech founders, investors, and buyers.

In considering the dynamic legal technology landscape to see where we’ve been, where we are now, and where the dollars might go next, this week’s feature story explores:

• LegalTech funding’s strong first half of 2025;
• Some key moments in mergers and acquisitions;
• The evolution of legal technology adoption;
• The state of competition.
• A look at what’s next for LegalTech.

What are your thoughts on the LegalTech market in 2025 so far, and where do you see the dollars going next?

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Venture Legal, Ed. 14, ”Where Do the Dollars Go Next?” Funding, Adoption & Competition in LegalTech

Monica Zent

Monica Zent is a LegalTech pioneer, entrepreneur, investor, and founder of ZentLaw, one of the first Alternative Legal Service Providers (ALSPs) in the United States. She writes about LegalTech, artificial intelligence, legal operations, venture capital, enterprise innovation, and the future of legal services. Through her thought leadership, speaking engagements, and advisory work, Monica helps organizations and investors navigate emerging technologies and the evolving legal landscape. Learn more about Monica, her work, and her latest insights at MonicaZent.com.

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