Legal Tech Startup August Raises USD 7 Mn to Expand AI Tools for Midsize Law Firms The capital will be used to expand engineering, product, legal, and sales teams while strengthening the company's presence in markets such as India.
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August, a legal tech startup, has secured USD 7 million in a funding round led by New Enterprise Associates and Pear VC.
The capital will be used to expand engineering, product, legal, and sales teams while strengthening the company's presence in markets such as India.
Additional investors in the round included Afore Capital, multiple law schools, and angel investors such as Gokul Rajaram, alongside senior executives from Ramp, OpenAI, and Bain Capital Ventures.
The New York-based company was founded in 2023 by Rutvik Rau, Thomas Bueler-Faudree, and Joseph Parker. Formerly known as Vecflow, August develops modular artificial intelligence agents designed for midsize law firms.
Its tools focus on automating document-intensive processes, including contract reviews, due diligence, and preparation for discovery. The company estimates that midsize law firms make up more than 50,000 entities globally, employing over half a million lawyers.
August has begun expanding into India and is collaborating with Economic Laws Practice, a law firm it says has reduced due diligence time by 60 percent using its tools. Other law firms in the country are also piloting the platform. The company states its AI agents are designed to adapt to local regulations, disclosure practices, and document standards, setting them apart from generic tools aimed at larger global firms.
Chief Executive Officer Rau said midsize firms often seek innovative solutions due to client demands for cost efficiency, creating an environment conducive to adopting AI. He noted that existing market offerings are largely targeted toward major law practices, leaving a gap for solutions tailored to smaller yet dynamic firms.
The platform can be deployed within a firm's own network, allowing compliance with data residency requirements. Investors believe this approach positions August to address a growing demand in the legal sector.
Tiffany Luck, partner at New Enterprise Associates, said there is significant potential in the midsize legal market, where firms are motivated to adopt innovation that offers measurable returns. She added that August's AI platform enables these firms to enhance client service while driving business growth.
