ILS, a London-based AI platform for private funds lawyers, has raised $3M in seed funding led by Chicago Ventures. ProVision automates side letter extraction, most-favored-nation (MFN) workflows, and provision comparisons into auditable processes. The capital will accelerate product development and expand to additional fund workflows.
LegalTech Hits $55B by 2029
The raise aligns with legaltech's expansion from $26.7B in 2023 to $55B by 2029 at 12.8% CAGR. Ontra, a private markets contract platform, has secured $325M total funding, while Robin AI raised over $43M for contract review tools. ILS differentiates through law firm-specific MFN automation, already adopted by 10+ top firms like Goodwin and Ropes & Gray processing $150B+ in capital.
Side Letters Surge Per Fund
Private funds now manage hundreds of side letters per raise, up from dozens, amid $10T+ AUM growth. Top 10 law firms advised on $617B in fundraises from Oct 2023 to Sep 2024. Manual extraction and MFN elections consume hours per lawyer, risking compliance errors under SEC and EU AIFMD scrutiny.
ProVision Builds Virtual Master Letters
ProVision extracts terms from 5,000+ side letters into a virtual Master Side Letter for redlining and comparisons. Unlike Ontra's GP-focused tools, it structures workflows for law firm teams, preserving legal judgment with audit trails. Ropes & Gray integrated it post-pilot, citing time savings on manual tasks.
As Melissa Bender, co-lead of Ropes & Gray's private funds group, noted:
"ProVision has been a game-changer for our private funds group, fundamentally reinventing how we manage the side letter process."
Chicago Ventures Validates Funds Niche
Chicago Ventures, with legaltech exits like Heretik to Relativity, led the round following The LegalTech Fund's investment. Their $80M Fund IV targets enterprise SaaS transforming professional services. This signals conviction in ILS's 100% pilot-to-customer conversion and $150B capital traction within two years of founding.
Ex-Goodwin Lawyers Target Workflows
Co-founders Jack McCarthy and Fergus Plant bring direct experience from Goodwin's funds practice and Proskauer Rose. McCarthy handled commercial tech as associate; Plant advised on fund formation and compliance. Their insider view built ProVision, securing partnerships with former employers and peers like Paul Weiss and Willkie Farr.
Private Funds Drive LegalTech Demand
Legaltech grows as AI handles complex investor terms in a $1T+ fundraising boom. SmartEsq launched similar fund tools in 2025 with undisclosed funding, while Syntheia extends contract AI to MFNs. ILS leads law firm adoption, supporting 450+ matters and 1,000+ users since 2024 launch.
US Expansion Follows Firm Wins
Post-raise, ILS integrates with Willkie Farr's asset management teams and plans workflow expansions. Backed by $3.5M total seed including The LegalTech Fund, it eyes SOC 2 Type 2 and GDPR compliance for global scale. Recent hires like Head of Growth signal US push after UK roots.