Luminance, a legal-grade AI startup based in Cambridge, has secured $40 million in a Series B funding round.
The investment was led by March Capital, a growth-stage venture firm based in Santa Monica, with participation from National Grid Partners and existing investors, including Slaughter and May.
The funding will be utilized to drive Luminance’s global growth and expand its presence in the United States.
It aims to further innovate and solidify its position as a leader in the legal AI market.
Luminance’s AI technology is built on a proprietary legal Large Language Model (LLM).
It automates various aspects of legal document processing, including contract generation, negotiation, and analysis.
The technology is designed to identify non-standard clauses, suggest preferred language, and automatically extract key terms and obligations from legal agreements.
Acting as a sophisticated “spellchecker” for legal documents, Luminance automatically conducts a first-pass review of incoming contracts.
It swiftly identifies acceptable clauses (green), areas requiring further review (amber), and unacceptable clauses (red) based on industry benchmarks or organizational standards.
This streamlines the contract negotiation process, saving time and ensuring compliance.
Leveraging its conceptual understanding of language, Luminance goes beyond simple keyword searches to deliver comprehensive results.
For example, during an Environmental, Social, and Governance (ESG) review, Luminance can surface not only exact word matches but also relevant documents mentioning related terms like ’emissions’ or ‘mines’.
This level of detail enables businesses to respond effectively to changing regulatory frameworks and geopolitical events.
Luminance’s technology has been used in several notable applications, including completely automating the negotiation of a contract without human intervention and reducing the time spent reviewing evidence in criminal court proceedings.
Luminance serves a rapidly growing customer base comprising 600 organizations across 70 countries.
Its clients include global manufacturers like Koch Industries and Hitachi, insurers like Liberty Mutual, and pharmaceutical giants like LG Chem.
Investors, including March Capital and National Grid Partners, express confidence in Luminance’s ability to drive efficiency and provide value in legal workflows.
Early investors, such as Slaughter and May, validate Luminance’s ground-breaking innovation in the legal AI sector.
Luminance plans to bring its technology to new markets, strengthen its foothold in the United States, and continue developing advanced AI tools to serve its customers.
