Crosby Legal, an AI-first law firm, has announced a significant milestone, raising $60 million in Series B funding, co-led by Index Ventures and Lux Capital, pushing its valuation to $400 million. The New York-based firm, which recently launched an outdoor campaign in San Francisco, is challenging the traditional legal billing model, with one observer stating, "They're calling it the death of the billable hour." Crosby aims to redefine legal contracting by offering AI-powered services with fixed pricing per document, rather than hourly rates.
The firm's innovative approach combines a suite of AI agents with human lawyers to expedite the review and negotiation of commercial contracts, including NDAs, MSAs, and DPAs. This hybrid model allows Crosby to deliver contract reviews in under an hour, a stark contrast to the days or weeks often required by traditional firms. CEO Ryan Daniels, who co-founded Crosby with ex-Ramp engineering manager John Sarihan in September 2024, describes it as a "neofirm" built for the AI era.
Crosby has rapidly gained traction, servicing approximately 100 clients, including prominent AI startups like Cursor, Clay, and Cognition, as well as larger entities such as real estate firm Tishman Speyer. The company reports reviewing 13,000 contracts to date and achieving a 400% revenue growth since October 2025. This growth is attributed to its ability to provide fast, predictable, and cost-effective legal solutions, aligning incentives with clients who prioritize deal velocity.
The $60 million Series B round saw additional participation from Sequoia Capital, Bain Capital Ventures, and venture capitalist Elad Gil, underscoring investor confidence in Crosby's disruptive model. This funding will support the firm's expansion and development of advanced AI capabilities, including counterparty response simulations and voice negotiation agents. Crosby's official website proudly states, "We're a registered law firm with malpractice insurance. We stand behind our work."
While Crosby's model offers a compelling alternative, some industry experts maintain that the billable hour will persist for complex legal work in larger firms. Robert J. Couture, a senior research fellow at Harvard Law School's Center on the Legal Profession, believes AI will dramatically change practice but not necessarily the business model of large law firms, emphasizing the client's need for human trust. Crosby, however, focuses on "commoditized legal work," aiming to make high-quality legal services more accessible, akin to a "Robinhood for legal services."
