Spellbook Raises $40M in Debt Financing from RBCx at $350M Valuation to Expand Legal AI Platform for Transactional Law
Spellbook just pulled a neat trick out of the legal tech hat. $40M in debt financing from RBCx, the tech and innovation banking arm of Royal Bank of Canada. Not equity. Debt. Which usually means 1 thing in startup land. Someone believes the engine is already humming and the next move is scale, not survival.
Credit where it is due. Congratulations to Scott Stevenson, Co-Founder and CEO of Spellbook, and the entire team for securing the capital and the confidence behind it. RBCx does not toss around checks for companies hoping things might work out someday. They back businesses that already proved the machine runs.
Spellbook sits right in the middle of 1 of the most interesting pressure points in business. Contracts. The quiet infrastructure of the global economy. Sales deals, procurement agreements, employment terms, mergers, real estate, IP. Every transaction eventually lands inside a contract. Scott Stevenson has pointed out that roughly $30T runs through contracts annually in the United States alone. Think about that for a second. $30T reasons for lawyers to read carefully and move fast.
Spellbook built an AI copilot that lives inside Microsoft Word, the place lawyers already work. It reviews contracts, drafts clauses, answers questions with citations, and benchmarks language against 2,000+ market standards. The platform also includes an AI agent called Associate that can handle multi-document workflows, which starts to look a lot like giving legal teams a digital junior associate that never sleeps and never bills by the hour.
The traction tells the story better than any pitch deck ever could. More than 4,000 law firms and in-house legal teams across 80+ countries are using Spellbook. The platform has already accelerated more than 10M contracts. Revenue grew 10x between 2022–2023, and the company says it is on pace to triple revenue in 2025. That kind of curve tends to attract serious capital.
The investor lineup reads like a strong table at a high stakes card game. Khosla Ventures led the $50M Series B round in 2025, with participation from Inovia Capital, The Legaltech Fund, Thomson Reuters Ventures, and a crew of venture firms that know this category well. That round valued the company at $350M. Now RBCx steps in with a $40M debt facility aimed squarely at strategic acquisitions as the legal AI market begins to consolidate.
That part matters. When companies start using debt to fund acquisitions instead of equity to fund survival, it signals a shift in the market. The early experimentation phase fades. The real players begin stacking capabilities.
Spellbook is not just casting spells on contracts. It is building infrastructure for the way legal work actually happens, inside the documents that quietly move $30T through the economy every year. And if the pace so far is any signal, the next chapter might read a lot faster than the last one.
