Arceus Legal, a law firm utilizing artificial intelligence, has secured $17 million in a new funding round. The investment was led by Greycroft LP, with additional participation from Craft Ventures Management and South Park Commons Management. The company intends to use the capital to hire attorneys, engineers, and AI researchers at its San Francisco headquarters.
The firm operates on a flat-fee model, with standard contract reviews priced at $500. Arceus guarantees that if a review exceeds eight hours, the client is not charged, though most tasks are completed within three to five hours. The company utilizes its proprietary operating system, CounselOS, which integrates with platforms like Salesforce, HubSpot, and Gmail to manage client preferences and negotiation history.
While the firm initially focused on commercial contracts, such as master service agreements and nondisclosure agreements, it is now expanding into employment and privacy law. According to the company, its customer base grew fourfold in September. Founder and CEO Mac Liu established the firm to address inefficiencies in the traditional billable-hour model, which he argues incentivizes delays.
Mark Terbeek, a partner at Greycroft, noted that while many AI legal startups focus on selling software to existing firms, Arceus is attempting to restructure the law firm model itself. The company combines AI agents with human oversight, requiring licensed attorneys to approve all work produced through its internal systems.
