Startup That Tracks Down Legal Violations With AI Raises $35M

An Israeli startup that uses artificial intelligence to analyze public documents and determine their potential for class action lawsuits has raised $35 million in its latest funding round. 

Darrow’s generative AI can sift through information such as consumer complaints to detect legal violations, predict their likely outcomes in the court of law and assess their overall financial impact. 

Its aim is to streamline the process of finding potential court cases, which can take up to hundreds of hours, the startup says.

This Series B round was led by B2B specialist Georgian, with F2 and previous backers Entrée Capital and NFX also participating.

Since being founded in 2020, Darrow has uncovered hundreds of cases across legal domains, including consumer protection, environment, financial fraud, and privacy and data breach.

Darrow works with litigators in 50 leading US law firms and has uncovered legal violations resulting in active litigation work totalling over $10 billion.

The Tel Aviv-based startup will use the newly raised capital to recruit for R&D and develop its AI to detect violations in other areas of the law. 

“Every day, countless legal violations impacting a vast number of individuals slip through the cracks, though the evidence behind these violations and the legal theories to support potential cases are widely available,” said CEO Evyatar Ben Artzi, co-founder and CEO of Darrow.

“It isn’t humanly possible for lawyers to parse through this endless amount of data, so Darrow’s platform leads this crucial piece of the process, helping law firms grow their business while maximizing impact for the people they serve.”