Casetext Acquisition, Valuation, Funding & Investors
Casetext was acquired by Thomson Reuters for $650M in June 2023.
Cumulative funding Casetext raised
$64M
across 6 funding rounds
Key investors in Casetext
Red Sea Ventures
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Darian ShiraziBoxGroup
Union Square Ventures
Susa Ventures
Bridge Investments
Y Combinator
8VC
About Casetext
Casetext is a San Francisco-headquartered legal research platform powered by artificial intelligence through its CARA engine for contextual analysis and parallel citations. The service combines traditional Boolean search with AI-driven recommendations to surface relevant case law, statutes, and secondary sources faster. Casetext serves law firms, corporate legal departments, and solo practitioners with tools like docket alerts, brief analysis, and contract review via Composer. Founded in 2013, the platform expanded through acquisition by Thomson Reuters in 2023, integrating into Westlaw Precision for broader research capabilities.
Founded
2013
HQ
San Francisco, CAWebsite
Status
Acquired
Customer focus
B2B
Revenue model
Subscription
Valuation
$125M (Jan 2022)
Sectors
Casetext Acquisition
Casetext was acquired by Thomson Reuters for $650M on 26 June 2023.
Before the acquisition Casetext had raised $64M across 6 funding rounds.
| Acquirer | Date | Type | Price |
|---|---|---|---|
| 26 Jun 2023 | Strategic M&A | $650M |
Casetext Valuation
Casetext is currently valued at $125M, based on its Series C in January 2022.
Casetext valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Jan 2022 | Series C | $125M |
Casetext Funding History
Casetext has raised a total of $64M across 6 funding rounds.
Casetext's first fundraising round was a $2M seed round in October 2013. The most recent completed round was a $25M Series C in January 2022.
Casetext funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Jan 2022 | Series C | - | $25M | $125M | Casetext is a legal research technology company founded in 2013, offering AI-powered tools to help lawyers search legal documents, conduct research, and draft briefs. The company raised $25 million in a Series C funding round in early 2022, documented in an SEC filing on January 7, 2022, led by BuildGroup with participation from Union Square Ventures, Canvas Ventures, Y Combinator, and Touchdown Ventures. This brought total funding to $64.3 million across multiple rounds. Casetext operated near profitability at the time and had over 9,000 law firm customers, including more than 40 AmLaw 200 firms, but sought to expand marketing, sales, support, and AI investments to address growth limitations from awareness. The funding was not strictly needed but aimed to signal long-term commitment to customers amid product improvements in legal search, document analysis, and AI technologies. Prior rounds included a $12 million Series B in 2017 and earlier raises totaling around $39.3 million before Series C. Casetext's traction positioned it as a preferred alternative in legal tech, focusing on affordable and efficient research over incumbents. In June 2023, Thomson Reuters acquired Casetext for $650 million in cash, a significant jump from the $125 million valuation just 18 months prior, reportedly around 20x revenue amid rapid growth and the generative AI boom exemplified by ChatGPT. The acquisition followed strong momentum, potentially averting another independent funding round. Post-acquisition, Casetext's technology integrated into Thomson Reuters' offerings, marking a pivotal moment in legal tech consolidation. |
| Feb 2020 | Series A | Bridge Investments | $8M | - | Casetext raised $8.2 million in a venture round from Bridge Investments in February 2020. The company, founded in 2013, develops AI-powered legal research and workflow tools. This round contributed to its total funding, which reached $64.3 million by 2022. Casetext's prior Series B in 2017 raised $12 million, with an estimated post-money valuation of around $50 million based on typical VC ownership assumptions. In January 2022, it raised a $25 million Series C led by BuildGroup, with participation from Union Square Ventures, Canvas Ventures, Y Combinator, and Touchdown Ventures. The company served over 9,000 law firm customers, including 40 of the AmLaw 200, by early 2022. Casetext launched its flagship AI product CoCounsel, leveraging GPT-4 for document review, legal research, depositions, and contract analysis, with a customer base exceeding 10,000 law firms and corporate legal departments. In 2023, Thomson Reuters acquired Casetext for $650 million in cash to advance generative AI solutions in legal tech. |
| Mar 2019 | Series A | Socii Capital; Cerity Partners Ventures; Bridge Investments | $10M | - | - |
| Mar 2017 | Series B | 8VC; Union Square Ventures; Red Sea Ventures; Darian Shirazi | $12M | - | - |
| Feb 2015 | Series A | Union Square Ventures (lead); Susa Ventures; BoxGroup; Thomas Glocer; Red Sea Ventures; Formation 8; Darian Shirazi; Ilya Sukhar | $7M | - | Casetext, a Y Combinator-backed legal tech startup founded in 2013, provides a community site for attorneys to share knowledge and free access to attorney-annotated legal texts. The company raised a $7 million Series A funding round on February 3, 2015, led by Union Square Ventures, with participation from Formation 8, former Thomson Reuters CEO Thomas Glocer, and existing investors including BoxGroup, Darian Shirazi, Ilya Sukhar, Red Sea Ventures, and Susa Ventures. This brought Casetext's total funding to $8.8 million. At the time of the Series A, Casetext had grown to over 250,000 monthly visitors and featured over 100,000 posts from about 35,000 users. The funding was intended to expand the team for ambitious technological goals and increase coverage of its legal library to serve more attorneys. Union Square Ventures' investment aligned with its history and partners' legal expertise, with John Buttrick joining the board. |
| Oct 2013 | Seed | A-Grade Investments; Susa Ventures; Y Combinator; David Beyer; BoxGroup; Charlie Cheever; Red Sea Ventures; Avichal Garg; Ben Davenport; Darian Shirazi; Crosslink Capital; Paul Buchheit | $2M | - | - |
Who has invested in Casetext?
20 investors have backed Casetext across its funding rounds, including Red Sea Ventures, Darian Shirazi, BoxGroup, Union Square Ventures, Susa Ventures and Bridge Investments.
Lead investors include Union Square Ventures.
Casetext Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| New York City, NY | 3 | Participant | Oct 2013 | |
| Darian Shirazi | United States | 3 | Participant | Oct 2013 |
| San Francisco, CA | 2 | Participant | Oct 2013 | |
| New York City, NY | 2 | Participant | Oct 2013 | |
| New York City, NY | 2 | Lead | Feb 2015 | |
| Chicago, IL | 2 | Participant | Mar 2019 | |
| United States | 1 | Participant | Oct 2013 | |
| San Francisco, CA | 1 | Participant | Oct 2013 | |
| David Beyer | United States | 1 | Participant | Oct 2013 |
| San Francisco, CA | 1 | Participant | Mar 2017 | |
| New York City, NY | 1 | Participant | Feb 2015 | |
| San Francisco, CA | 1 | Participant | Oct 2013 | |
| San Francisco, CA | 1 | Participant | Mar 2019 | |
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Start Free TrialCasetext Competitors
Casetext competitors include listed companies like Bengo4.com and LegalZoom, and private ones like Trellis Research, Legal.io, Lawhive and General Counsel AI.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Los Angeles, CA | Private | - | - | $90M | - | |
| San Francisco, CA | Private | $24M | - | $52M | 2.2x | |
 London | Private | $35M | - | $685M | 19.6x | |
| San Francisco, CA | Private | $10M | - | $555M | 55.5x | |
 Japan | Publicly listed | $105M | $19M | $812M | 6.9x | |
| United States | Publicly listed | $756M | $74M | $1B | 1.1x |
Casetext Public Comps
Casetext is no longer listed, but its public comps include IPH, Bengo4.com, Keystone Law Group, LegalZoom, Knights Group Holdings, Gateley, Shine Justice, Talenom, NAHL Group and Fondia.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $505M | $140M | 1.7x | 1.7x | 6.1x | 5.9x | |||
| $105M | $19M | 7.7x | 6.9x | 43.8x | 33.0x | |||
| $155M | $17M | 1.8x | 1.6x | 16.1x | 13.3x | |||
| $756M | $74M | 1.2x | 1.1x | 12.1x | 4.8x | |||
| $279M | $33M | 1.2x | 1.2x | 10.3x | 4.9x | |||
| $261M | $21M | 0.7x | 0.7x | 8.7x | 4.8x | |||
| $149M | $22M | 1.0x | 1.0x | 6.6x | 4.6x | |||
| $126M | $31M | 1.2x | 1.2x | 4.9x | 5.6x | |||
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Common questions about Casetext
| When was Casetext founded? | Casetext was founded in 2013. |
| Where is Casetext headquartered? | Casetext is headquartered in San Francisco, CA, United States. |
| Is Casetext publicly listed? | No, Casetext was acquired by Thomson Reuters in June 2023. |
| Who acquired Casetext? | Casetext was acquired by Thomson Reuters in June 2023. |
| How much was Casetext acquired for? | Casetext was acquired for $650M in June 2023. |
| What is Casetext's valuation? | Casetext was last valued at $125M in its Series C in January 2022. |
| How much funding has Casetext raised? | Casetext has raised $64M across 6 funding rounds. |
| What was Casetext's last funding round? | Casetext's last funding round was a $25M Series C in January 2022. |
| Who are Casetext's investors? | Casetext's investors include Red Sea Ventures, Darian Shirazi, Susa Ventures, BoxGroup, Union Square Ventures, Bridge Investments, A-Grade Investments, Y Combinator, David Beyer, 8VC and 10 others. |
| Which companies are comparable to Casetext? | Companies comparable to Casetext include Trellis Research, Legal.io, Lawhive, General Counsel AI, Bengo4.com and LegalZoom. |
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