Sandstone Raises $30M to Modernize In-House Legal Teams

Sandstone has raised $30 million in Series A funding, led by Lightspeed Venture Partners, to build AI-powered tools that give in-house legal teams a shared, searchable layer of institutional knowledge.

In-house legal teams have long relied on individual lawyers to retain and apply institutional knowledge. Sandstone says this creates a core problem: when legal context lives only in people's heads, it cannot scale, cannot be routed intelligently, and is lost when those people leave. The company's software is designed to capture and centralize that context so it can be used across every legal workflow.

The Funding Round

Sandstone closed a $30 million Series A round led by Lightspeed Venture Partners. Existing investors also participated. The company previously closed a seed round, though the amount was not disclosed publicly.

The funding will go toward scaling enterprise customer success, hiring across all functions, and building a community for in-house legal professionals.

The Problem Sandstone Addresses

In-house legal teams currently lack a central system to store decisions, precedents, and playbooks. Work is scattered across inboxes, Slack threads, and shared drives. When a new request comes in, a lawyer must either recall the relevant context from memory or search across disconnected tools.

Generic AI tools have begun to automate drafting and document review, but they do not carry this institutional context. The result, according to Sandstone, is that automated outputs may look correct but lack the business-specific reasoning behind prior decisions.

Co-founder Jarryd, who previously served as in-house counsel, described the problem directly: "every one depending on knowledge trapped in someone's head."

How Sandstone Works

Sandstone connects legal intake, triage, drafting, and redlining to a single context layer. When a request comes in, the platform routes it to the appropriate level of AI model based on complexity, using the company's stored playbook to ensure the output reflects prior decisions and internal standards.

The platform is described as "multiplayer by default and self-learning by design." Each completed task adds to the shared knowledge base, making the system more accurate over time.

Sandstone also supports integration via MCP (Model Context Protocol), a standard that allows external agents and AI assistants to connect to the platform and draw on its legal context without requiring separate integrations for each tool.

Traction and Growth

Sandstone reported more than 40x revenue growth in the 120 days following its seed round. The company now serves enterprise customers across retail, technology, and manufacturing sectors.

Co-founder Nick, who previously worked at McKinsey, pointed to a pattern he observed across industries: "a lack of context quietly tax every layer of every company he touched."

The company says the speed of its growth reflects demand from in-house teams that have not been well served by existing legal software. Co-founder Liam, who joined from a design background, noted that legal tools have historically been "clunky portals and gray forms" while every other business function received modern, intuitive software.

About Sandstone

Sandstone is a legal operations company building AI-powered software for in-house legal teams. The company was founded by Jarryd, a former in-house counsel; Nick, a former McKinsey consultant; and Liam, a designer. Sandstone's platform centralizes legal context, routes tasks to the appropriate AI model, and compounds institutional knowledge over time. The company serves enterprise customers across multiple industries and is headquartered at an undisclosed location.