Toronto-based Spellbook, an AI copilot for contract drafting used by nearly 4,000 law firms and legal teams globally, has secured USD $40 million in debt financing from RBCx.
The financing follows Spellbook’s USD $50 million Series B round earlier this year, which valued the company at $350 million post-money. The new capital is intended to support strategic acquisitions as consolidation accelerates across the rapidly evolving legal AI sector.
Spellbook says the facility will allow it to pursue complementary technologies while expanding its platform as demand for AI-powered legal tools continues to grow. The company, which launched one of the first generative AI products designed specifically for lawyers in 2022, now serves nearly 4,000 law firms and in-house legal teams across 80 countries, including Nestlé, eBay, and Kennedys.
“The legal AI market has matured exceptionally fast, and we’re seeing consolidation accelerate,” said Scott Stevenson, CEO and co-founder of Spellbook. “We hear from a small legal AI company every few weeks looking for an exit. It’s become increasingly difficult for new entrants to gain a foothold in this space.”
Spellbook says the capital will enable targeted acquisitions aimed at strengthening the company’s data-driven infrastructure and expanding its capabilities for contract drafting, review, and negotiation.
“As the legal tech sector rapidly evolves, RBCx is proud to support companies like Spellbook that have demonstrated clear market leadership and the vision to shape the industry’s future,” said Tony Barkett, Head of Banking at RBCx. “This financing reinforces our commitment to powering Canadian innovation and supporting bold market solutions at every stage of growth.”
The new facility builds on a strong growth year for Spellbook. In 2025, the company tripled revenue, reached a $350 million valuation, and introduced its “Compare to Market” feature, which helps lawyers ground contract negotiations in data drawn from hundreds of thousands of agreements.
“Our early market entry and proven traction with thousands of firms positions us well to lead this consolidation while expanding into adjacent offerings,” Stevenson said.
Spellbook is backed by investors including Khosla Ventures, Thomson Reuters Ventures, Inovia Capital, The Legaltech Fund, Bling Capital, and Moxxie Ventures.