Legal tech startup August has secured $7 million in funding to transform how midsize law firms operate. The company announced that New Enterprise Associates and Pear VC led the funding round. The New York-based company plans to use this capital to expand engineering teams, strengthen product development, and enhance sales operations.
This funding marks a significant boost for the legal tech sector.
Founded in 2023 by Rutvik Rau, Thomas Bueler-Faudree, and Joseph Parker, August previously operated under the name Vecflow. The startup develops artificial intelligence tools for midsize law firms, automating document-heavy legal work like contract reviews and handling due diligence and discovery preparation tasks.
Why It Matters Now
Midsize law firms are an underserved market, with August estimating more than 50,000 such firms worldwide employing over 500,000 lawyers. Most existing legal tech solutions focus on large firms, leaving a gap for midsize organizations.
CEO Rutvik Rau said, “We realised that these midsize firms are extremely innovative, because they’re trying to provide the best client services. 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.”
Market Impact in India
August is beginning to expand operations into India, working with Economic Laws Practice, which has reported a 60 percent reduction in due diligence time. Other Indian firms are piloting August’s platform, which adapts to local regulations and compliance needs, setting August apart from generic solutions.
Strategic Advantage
August’s platform meets data residency requirements and local data protection regulations. Its modular design allows firms to choose specific AI agents for various legal processes, appealing to cost-conscious midsize practices.
Tiffany Luck, partner at NEA, said, “We see tremendous potential in the midsize legal market, where firms are eager for innovation that drives meaningful ROI. August’s AI platform and custom agents enable midsize firms to deliver exceptional client value and drive significant growth.”
What Business Leaders Should Know
The funding round included investors from Afore Capital, several law schools, and notable angel investors. August sees substantial opportunities in the Indian market as local firms increasingly embrace technology for service delivery and efficient cost management.
