Spellbook, the AI copilot for contracts used by nearly 4,000 law firms and legal teams globally, secured $40 million in debt financing from RBCx, the technology and innovation banking arm of Royal Bank of Canada (RBC). This strategic capital comes just two months after the company’s $50 million series B funding round which valued the company at $350 million post-money and will fuel prospective acquisitions as the legal AI market experiences rapid consolidation.
The debt facility arrives as Spellbook sees increasing opportunities to acquire complementary technologies and expand its market-leading position in legal AI.
“The legal AI market has matured exceptionally fast, and we’re seeing consolidation accelerate,” Scott Stevenson, CEO and co-founder of Spellbook, said. “We hear from a small legal AI company every few weeks looking for an exit. It’s become increasingly difficult for new entrants to gain a foothold in this space.”
This strategic capital from RBCx enables targeted acquisitions that will expand Spellbook’s data-driven infrastructure beyond generic outputs to deliver the precision lawyers need to close deals and make contracts flow at the speed of commerce.
“As the legal tech sector rapidly evolves, RBCx is proud to support companies like Spellbook that have demonstrated clear market leadership and the vision to shape the industry’s future,” Tony Barkett, head of Banking at RBCx, said. “This financing reinforces our commitment to powering the Canadian innovation driving bold market solutions at every stage of growth.”
The debt facility accelerates Spellbook’s transformation of legal work following a landmark 2025.
“Our early market entry and proven traction with thousands of firms positions us perfectly to lead this consolidation while expanding into adjacent offerings,” Stevenson said.
