Prime Highlights:

• UK lawtech companies are attracting record investment, with 2025 on track to be the sector’s biggest year yet.
• Investor interest is growing, with major funding focusing on solutions that simplify legal work and manage risks.

Key Facts:

• From January to June 2025, 27 UK lawtech firms raised £116.6 million, nearly matching the total funding for all of 2024 (£139.6 million).
• Most investments went to documents and contracts (20%), risk management (17%), and matter management (14%), showing strong demand for legal workflow tools.

Key Background:

UK lawtech investment is hitting record levels in 2025. From January to June 2025, 27 UK-based lawtech firms raised £116.6 million, almost reaching the total funding for all of 2024, which was £139.6 million from 30 companies. The average deal in the first half of 2025 reached £4.3 million, according to the LawtechUK Investment Snapshot, which tracks sector-wide investments.

The report calls 2025 “a breakout year for UK lawtech,” with growing investor interest in innovative and scalable legal solutions. In the first six months, eight major deals were made, showing strong confidence in technology-driven legal services.

The number of UK lawtech companies has also increased, from 270 in 2024 to 295 in 2025. Growth is driven by new innovations and more companies joining the market. Most investments went to documents and contracts (20%), risk management (17%), and matter management (14%).

London still leads in the number of deals, making up 68% of them, but it accounts for only 53% of the total investment (£63 million). This suggests that deals outside London are getting bigger, with Scotland becoming the second most active hub. According to the report, this points to a gradual broadening of the UK’s lawtech innovation landscape.

Christina Blacklaws, chair of the LawtechUK panel, commented: “It’s exciting and inspiring to see that the spectacular success in 2024 has already been eclipsed. The first half of 2025 shows huge growth in the lawtech sector. I’m proud that LawtechUK has had a real impact in driving this achievement, and I’m confident the sector will continue to grow significantly.”

The report also highlights law firms’ increasing adoption of AI, with nearly eight in ten of the top 20 firms using third-party AI tools. Almost half have developed their own systems or partnered on customised solutions, while more than half provide AI training for their lawyers. Six firms have invested in AI start-ups or launched in-house incubators, reflecting the sector’s commitment to innovation.