August, a New York-based AI platform for midsize law firms, has raised US$7 million in a funding round led by NEA and Pear VC.

Other investors include Afore Capital and several top law schools. Angel backers include Gokul Rajaram, Geoff Charles (Ramp), David Azose (OpenAI), and Kevin Zhang (Bain Capital Ventures).

Founded in 2023, August offers configurable AI workflows for legal tasks like contract review and due diligence.

Its modular AI can adapt to local legal requirements and integrate with firms’ internal systems to meet data residency rules.

The platform is used by firms across North America, Europe, Asia, and Australia.

The company said the funding will be used to expand its AI agent offerings and onboarding support.

August’s co-founders have backgrounds in AI, legal practice, and enterprise tech, with experience at Columbia University’s ML research lab, Blackstone, and PayPal.

🔗 Source: August

🧠 Food for thought

1️⃣ Midsize firms are embracing AI at unprecedented rates, validating August’s market timing

The legal AI market for midsize firms has reached a tipping point that makes August’s funding particularly well-timed.

Recent survey data shows that 93% of midsize firms are now using AI in some capacity, with over half adopting it widely or universally across their practices 1.

This represents a dramatic shift from just a few years ago, as 87% of midsize firm professionals now view technology investment as critical for future success 2.

August’s target market of 50,000 midsize practices employing half a million lawyers worldwide represents a segment that has moved beyond AI experimentation into active implementation and scaling.

The firm’s early success across four continents—with clients like Hicksons reviewing 5,000 negligence files 90% faster and ELP cutting diligence time by 60%—demonstrates that midsize firms are ready to pay for AI solutions that deliver measurable results.

2️⃣ August’s modular approach tackles the tool fragmentation problem plaguing midsize firms