Japan’s legal AI platform, called LegalOn, has recently raised $50 million in its Series E round led by Goldman Sachs Alternatives. If you are wondering what it means, it means that your legal paperwork could manage itself while you are sipping a hot cup of coffee or Matcha in a Tokyo high-rise or a San Francisco startup place. LegalOn is a legal AI platform that has inked a high-stakes strategic partnership with OpenAI to make the legal paperwork more efficient, accurate, and fast.
This is not just about another funding story of an artificial intelligence startup, but rather it is the globalisation of legal innovation. With more than 7000 companies in its client list, this legal AI platform from Japan has expanded itself in the field of artificial intelligence to broader legal team support and has built tools that can now track contract requests all over Slack, email, and much more. LegalOn is getting popular and has received the entire spotlight for achieving $50 million in their Series E round, and we are going to take a look at the bigger and brighter picture of it!
The Beginning of LegalOn
The legal AI platform from Japan that has been all over the news was founded in 2017 by two former lawyers named Nozomu Tsunoda and Masataka Ogasawara. They designed LegalOn to remove and eliminate the inefficiencies in legal contracting, and now it has turned into one of the most widely adopted artificial intelligence contract review tools in Japan. It was launched under the name of LegalForce at first, then it was quickly renamed to LegalOn upon entering the markets of the United States in 2022.
LegalOn’s flagship product is very appropriately named Review, and it helps legal teams comb through contracts, whether first party or third party. This helps them to identify legal risks and avoid them for future bad consequences, but here is the twist, as it doesn’t just flag problems but also ranks them from severity. The core capability saves legal departments from 85% of the time that they spent mostly doing contract review, while improving the quality and consistency.
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Legal AI Platform Raises $50M
Recently, the news of this legal AI platform called LegalOn from Japan getting a total of $50 million in their Series E funding round has raised their capital to $200 million. This is one of the greatest achievements and has made it to all news channels and papers, as Goldman Sachs Alternatives led the round. Names of some of the most notable investors, like World Innovation Lab, law firm Mori Hamada & Matsumoto, and some other major Japanese banks like Mizuho and Shoko Chukin, have also been revealed.
The capital received has fueled two major ambitions within this legal AI platform, and the first is expanding to the United States and the United Kingdom. The LegalOn technologies funding also has another ambition, and that is to build a new generation of agentic artificial intelligence legal products. This is where the picture of OpenAI comes into LegalOn. The OpenAI legal AI partnership gives LegalOn access to the enterprise version of ChatGPT and its cutting-edge API to generate magic and power with the help of artificial intelligence.
The Investors are Betting Big on Legal AI
Stephanie Hui, who is the co-head of Growth Equity at Goldman Sachs Alternatives, perfectly summed up the investor sentiment by stating that LegalOn is reinventing the contracting process. The funding of this AI contract review startup, based in Japan, partnered with OpenAI and deployed globally, in their markets, and hired talent from all over the globe. The previous investors of LegalOn include SoftBank Vision Fund 2, Sequoia spin-off HongShan Capital, and many existing players like Mizuho. The LegalOn technologies’ funding has attracted a lot of investors because, unlike other legal tech startups, they don’t just focus on automation and templating.
LegalOn is a legal AI platform that combines deep legal knowledge with advanced artificial intelligence to actually interpret and improve documents. The news of the Goldman Sachs LegalOn investment has quickly hit the markets and the news, and was able to attract a lot of other investors and audience as well. It also ventured into matter management by launching a product in July 2025 that allows legal teams to intake, assign, and even track legal requests over multiple platforms.
LegalOn is Just Getting Started
This legal AI platform from Japan that we just discussed above is doing what few startups manage, like staying grounded in the domains in which they have expertise. The founders didn’t just find inefficiencies, but also lived them as practical and professional lawyers, and probably that is why the tools often resonate with legal departments all over the world. The news of the $50 million raise is a validation that the company has received from investors for its hard work and reliability.
