Leya, a Swedish startup specializing in AI-driven legal technology, has raised $10.5 million in a seed funding round spearheaded by US venture capital firm Benchmark. This funding milestone follows closely on the heels of Leya’s completion of the Y Combinator accelerator program, which also contributed to the investment. Additional backers include London-based Hummingbird and San Francisco’s SV Angel.
To distinguish itself in a crowded market, Leya offers a comprehensive AI solution aimed at streamlining legal processes. Co-founder and CEO Max Junestrand explains, “We believe lawyers prefer a single, versatile AI tool over multiple specialized ones. By prioritizing data and integrating historical work and legal databases from various countries, we enhance our tool’s capabilities.”
With this new funding, Leya plans to expand its 25-member team and further develop its product. “There’s an immense amount of work, and our team is dedicated to making significant progress,” Junestrand states.
Founded in June 2023 at the Stockholm School of Economics’ Business Lab incubator, Leya quickly garnered support from notable figures like Joel Hellermark, founder of AI company Sana, and Erik Engellau-Nilsson, former CEO of the Norrsken Foundation. One of its early adopters was the prominent Swedish law firm Mannheimer Swartling. Acceptance into Y Combinator shortly after its inception brought significant attention and investment interest. “Being part of Y Combinator put us in the spotlight, and we had to be discerning with our engagements,” says Junestrand.
Leya now serves over 70 clients, including law firms and in-house legal teams across Europe in countries like the UK, Spain, France, Portugal, the Netherlands, and the Nordics. Subscription fees range from €1,000 to €3,000 annually per user.
Leya’s AI solution integrates directly with client files and legal data sources, including EU legal databases, regulations, case law, and authority information from more than 15 jurisdictions. This integration allows for efficient citation and reference generation, aiding in due diligence and legal reviews. The startup employs a variety of AI models to ensure data privacy and confidentiality, leveraging Microsoft’s Azure platform, Meta’s LLaMA, and OpenAI’s GPT-4.
“As AI evolves, more complex models will be slower, while simpler models handle routine tasks swiftly. We’re already implementing this layered approach in our technology,” Junestrand explains. “This innovation represents a transformative moment for our generation, akin to the advent of the internet.”
Discussing the company’s strategic focus, Junestrand emphasizes the importance of refining their product for the European market before considering global expansion. “There’s a lot of discussion but limited action regarding AI tools. Our priority is to develop a product that is well-received and widely used in Europe before looking at global opportunities.”
