Spellbook secures $50 million USD Series B led by Khosla Ventures to scale its AI contract review and transactional work platform.
Toronto’s Spellbook, the legal AI company often described as “Cursor for contracts,” has raised $50 million USD in Series B funding led by Keith Rabois of Khosla Ventures, with participation from Threshold Ventures, and existing backers Inovia Capital, Bling Capital, Moxxie Ventures, Path Ventures, and Jean-Michel Lemieux. The raise values the company at $350 million post-money and brings its total funding to more than $80 million.
The investment follows rapid growth for Spellbook, which has now reviewed more than 10 million contracts for customers including Nestlé, eBay, and Kennedys. Serving nearly 4,000 law firms and in-house legal teams across 80 countries, the company claims more customers than any other AI-powered contract review product.
“We’re at the spreadsheet moment for lawyers,” said Scott Stevenson, CEO and co-founder of Spellbook. “Just as spreadsheets transformed accounting, large language models are transforming law after 20 years of technological stagnation. With $30 trillion running through contracts annually in the U.S. alone, even small efficiency gains create massive value.”
Spellbook’s AI tool works directly within Microsoft Word, integrating seamlessly into existing legal workflows. Unlike competitors requiring complex rollouts, Spellbook deploys instantly, giving lawyers AI-powered drafting, review, and negotiation support without forcing them to change how they work.
“We think Cursor has been so successful because it’s like an electric bicycle for engineers—they still pedal and steer but get up hills faster,” Stevenson explained. “We have the same philosophy at Spellbook. We don’t replace lawyers; we help them ascend faster.”
With its new capital, Spellbook plans to expand beyond contract review to cover the full spectrum of transactional work, scale its go-to-market operations, and deepen its AI-driven contract intelligence using real-time market data and deal history. The company is already rolling out new features, including Market Comparison, Preference Learning, and Spellbook Associate, an AI agent capable of multi-document transactional drafting.
“Spellbook is using technology to make law faster, better, and more transparent,” said Keith Rabois of Khosla Ventures, who joins Spellbook’s board. “It’s the Shopify and Square democratization story for lawyers.”
The funding positions Spellbook as one of Canada’s fastest-growing legal AI startups—and one of the most closely watched players in the global push to modernize transactional law.