Crosby Raises $60M Series B to Build AI-Native Law Firm

Crosby, an AI-native law firm, has raised a $60 million Series B round led by Lux and Index Ventures on March 31, 2026.

The round also drew participation from Sequoia, Elad Gil, 01 Advisors, and Bain Capital Ventures. The funding signals growing investor confidence in vertically integrated legal AI companies that take direct liability for their work, rather than selling software tools to traditional law firms.

The Problem

America's top 100 law firms generated a combined $69 billion in profit last year. That figure exceeds Google's annual research and development budget. Every dollar of that profit was distributed to partners as compensation, leaving nothing reinvested into the business.

Crosby co-founders John and Ryan argue this model has left the legal industry without meaningful innovation. Their firm is structured differently. It retains profits to fund technology development directly tied to legal work.

What Crosby Does

Crosby's primary service is contract review. The firm describes its reviews as fast and accurate, and it takes legal liability for the output, unlike software vendors that disclaim responsibility for results.

Beyond contract review, Crosby is developing several new capabilities. These include a simulation tool that predicts how a counterparty will respond to legal redlines, voice agents that can negotiate on a client's behalf, and a client-facing platform that allows clients to monitor and weigh in on work in progress.

How the Funding Will Be Used

The $60 million will support Crosby's continued technical research and product development. The firm has described these initiatives as ambitious, requiring sustained capital investment beyond what a typical law firm would allocate.

John and Ryan stated in their announcement: "We are also committed to deep technical research that improves our lawyers' and our clients' lives."

They also described their broader mission directly: "We're building a new type of law firm. It's where you get better quality work, faster."

Investor Lineup

The round was co-led by Lux Capital and Index Ventures. Both firms have track records in deep technology and infrastructure investments. Sequoia joined as a participant, along with Elad Gil, a well-known technology investor and former Google executive. 01 Advisors, the venture firm co-founded by former Twitter CEO Dick Costolo and former Twitter President Adam Bain, also participated. Bain Capital Ventures rounded out the round.

The breadth of the investor group, spanning enterprise software, consumer technology, and deep tech, reflects cross-sector interest in AI applications within professional services.

The Broader Context

Legal AI has attracted significant investment in recent years, but most products are positioned as tools that assist lawyers, not as replacements for law firms themselves. Crosby occupies a distinct category. It is structured as a law firm, not a software company, which means it can sign engagement letters, take on legal matters, and bear professional responsibility for its advice.

This distinction matters for clients concerned about accountability. When a software tool produces an error in a contract review, the client typically has no legal recourse against the vendor. When a law firm produces an error, malpractice liability applies. Crosby is betting that clients will pay a premium for that accountability, combined with the speed and consistency that AI-assisted review provides.

The firm has not disclosed its current revenue, headcount, or the number of clients it serves.

About Crosby

Crosby is a vertically integrated, AI-native law firm founded by John and Ryan. The firm provides contract review services and is developing additional AI-powered legal tools, including counterparty simulation, negotiation voice agents, and a client oversight platform. Unlike legal software companies, Crosby operates as a licensed law firm and takes liability for its work. Its Series B round of $60 million was led by Lux Capital and Index Ventures, with additional participation from Sequoia, Elad Gil, 01 Advisors, and Bain Capital Ventures.