Financing follows recent $50M Series B and strengthens Spellbook’s ability to expand through M&A as legal tech sector matures

Spellbook, the AI copilot for contracts used by nearly 4,000 law firms and legal teams globally, today announced it has secured $40 million USD in debt financing from RBCx, the technology and innovation banking arm of Royal Bank of Canada (RBC). This strategic capital comes just two months after the company's $50 million USD Series B funding round which valued the company at $350 million post-money and will fuel prospective acquisitions as the legal AI market experiences rapid consolidation.

The debt facility arrives as Spellbook sees increasing opportunities to acquire complementary technologies and expand its market-leading position in legal AI. The company, which launched the first generative AI tool for lawyers in 2022, has witnessed extensive growth with its customer base reaching nearly 4,000 firms and in-house legal teams across 80 countries, including Nestlé, eBay, and Kennedys, among others.

"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.”

This strategic capital from RBCx enables targeted acquisitions that will expand Spellbook's data-driven infrastructure beyond generic outputs to deliver the precision lawyers need to close deals and make contracts flow at the speed of commerce.

"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, Banking, RBCx. "This financing reinforces our commitment to powering the Canadian innovation driving bold market solutions at every stage of growth."

The debt facility accelerates Spellbook's transformation of legal work following a landmark 2025: tripling revenue, achieving a $350 million post-money valuation, and launching the Compare to Market feature to ground negotiations in real data from hundreds of thousands of contracts.

“Our early market entry and proven traction with thousands of firms positions us perfectly to lead this consolidation while expanding into adjacent offerings," said Stevenson.

About Spellbook

Spellbook launched the first GenAI tool for lawyers in 2022 and continues to be the leading provider of legal AI for transactional law. It's helped nearly 4,000 legal teams improve their contract workflows and eliminate legal drudgery. Powered by large language models like OpenAI’s GPT-5, Spellbook is optimized to use legal-specific approaches for superior contracting performance. Spellbook is backed by investors including Khosla Ventures, Thomson Reuters Ventures, Inovia Capital, The Legaltech Fund, Bling Capital, and Moxxie Ventures. For more information about Spellbook go to https://www.spellbook.com.

About RBC

Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 98,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 19 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.‎

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/peopleandplanet.

About RBCx

RBCx – the tech and innovation banking arm of RBC – powers bold ideas, founders, and technology companies. We know building great businesses takes more than just finance, which is why our four pillars – Banking, Capital, Platform, and Ventures – combine to make us the go-to backer of Canadian innovation. We use our deep expertise to support businesses of all sizes and stages, and leverage RBC’s extensive experience, networks, and capital to solve tomorrow’s big problems.

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