Quick Take
- Legal tech startup August secured $7 million from NEA and Pear VC to expand AI tools for midsize law firms
- Company targets 50,000+ underserved midsize firms employing over 500,000 lawyers worldwide
- Indian firm Economic Laws Practice reports 60% reduction in due diligence time using August’s platform
- Platform automates document-heavy work like contract reviews and discovery preparation tasks
- Founded in 2023, August plans to expand engineering teams and strengthen product development
August just closed a $7 million Series A round that could reshape how midsize law firms handle their daily operations. The funding comes from New Enterprise Associates and Pear VC, targeting what the investors call an underserved market of more than 50,000 firms worldwide that employ over 500,000 lawyers.
The New York startup, which launched in 2023 under founders Rutvik Rau, Thomas Bueler-Faudree, and Joseph Parker, previously went by Vecflow. The company builds AI tools specifically for midsize practices, focusing on automating the document-heavy legal work that includes contract reviews, due diligence prep, and discovery tasks.
MIDSIZE FIRMS REPRESENT UNTAPPED MARKET OPPORTUNITY
Most legal tech companies chase the big law market, leaving midsize firms with limited options. August’s founders spotted this gap and decided to build something different.
“We realised that these midsize firms are extremely innovative, because they’re trying to provide the best client services,” CEO Rutvik Rau explains. “Their clients are extremely cost-sensitive, which creates the ideal environment for leveraging AI and reaping significant benefits. But at the same time, we saw that most existing players are focused only on the big law segment.”
The funding round, led by New Enterprise Associates and Pear VC, will help August expand its engineering teams, develop new products, and grow sales operations. Other investors included Afore Capital, several law schools, and angel investors who see potential in the midsize legal market.
INDIA EXPANSION DELIVERS MEASURABLE RESULTS
August’s move into India is already showing results. The company works with Economic Laws Practice, which reported a 60 percent reduction in due diligence time using August’s platform. Several other Indian firms are testing the technology, which adapts to local regulations and compliance requirements.
The platform handles data residency requirements and local data protection rules – something that matters for international expansion. This compliance capability sets August apart from generic solutions that can’t address specific regional legal frameworks.
“We see tremendous potential in the midsize legal market, where firms are eager for innovation that drives meaningful ROI,” says Tiffany Luck, partner at New Enterprise Associates. “August’s AI platform and custom agents enable midsize firms to deliver exceptional client value and drive significant growth.”
MODULAR DESIGN ENABLES SELECTIVE ADOPTION
August built its platform with a modular approach that lets firms pick and choose which AI agents they want for different legal processes. This appeals to cost-conscious midsize practices that have varying automation needs and budget constraints.
The platform tackles core legal workflows including contract analysis, regulatory compliance checking, and litigation support preparation. By focusing on document-heavy processes that eat up attorney time, August helps firms redirect human resources toward higher-value client work and strategic legal counsel.
Firms can roll out August’s solutions gradually, starting with specific practice areas or document types before expanding across the organization. This step-by-step approach reduces implementation risk while letting firms prove return on investment before broader deployment.
FUNDING ACCELERATES PRODUCT DEVELOPMENT TIMELINE
The $7 million investment lets August speed up product development while staying focused on cost-sensitive clients who want measurable automation benefits. The company plans to grow its engineering team and enhance platform capabilities to serve the expanding midsize firm market.
August sees big opportunities in emerging markets like India, where local firms increasingly embrace technology for service delivery and cost management. The investment positions the company to capitalize on this trend while building partnerships with regional legal organizations.
This funding represents a significant development for the legal tech sector, particularly for solutions targeting the previously overlooked midsize firm segment. As artificial intelligence adoption accelerates across professional services, August’s specialized approach addresses a market gap that larger competitors have missed.
