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

Venture Legal 14

“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?

Follow Monica on Substack and subscribe to read the featured story:

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

Monica Zent

  • LegalTech 2026 AI Trends to Watch

    By Monica Zent | December 18, 2025

    Business Insider recently wrote, “For many lawyers, 2025 was the year when using AI became mandatory.” Following a year in which AI became a foregone conclusion for the industry, and in which AI-powered LegalTech became a VC and media darling, what’s next for LegalTech in 2026? This edition of Venture Legal examines five key trends…

  • Record Highs, Record Lows: Tracking the Shifting VC landscape

    By Monica Zent | December 5, 2025

    I’m a firm believer that, in business and in life, before looking at the road ahead it is essential to look in the rear-view mirror, assessing the relevant landscape of challenges and opportunities. As we approach the time of year for predictions, resolutions and strategizing for the year ahead, for this edition of Venture Legal,…

  • LegalTech, Venture Capital & AI for Good

    By Monica Zent | November 20, 2025

    Startling statistics from the Legal Services Corporation reveal the degree to which low-income Americans report not having received any or enough legal assistance for civil legal problems.  Specifically: Could AI-powered LegalTech innovation help address such needs? While the vast majority of VC funding and startup activity in LegalTech is focused on the enterprise sector, for…