Sandstone, an AI-native Legal Relationship Management platform, has raised $30M in Series A funding led by Lightspeed Venture Partners. The platform connects documents, counterparties, people, and institutional knowledge to automate intake, triage, workflows, and reporting for in-house legal teams using agentic AI built on company-specific playbooks.
Agentic AI Targets In-House Legal Workflows
The timing comes amid accelerating adoption of agentic AI in legal. Sequoia participated in the round after leading Sandstone's $10M seed in January 2026. Sandstone's approach focuses on in-house workflow automation and relationship management rather than legal reasoning tools.
Context Gaps Limit Legal AI Effectiveness
In-house legal teams face fragmented intake across Slack, email, and Jira plus loss of institutional knowledge when staff depart. Research shows 69% of legal professionals now use AI tools, yet many solutions lack the business context required for reliable automation.
Platform Builds Self-Updating Playbooks
Sandstone turns legal work into agentic workflows that learn from actual decisions to auto-build and update playbooks. It integrates with over 50 systems and positions itself as a system of action rather than another document repository. The platform emphasizes context to avoid hallucinations common in general-purpose models.
"The best vertical AI companies win because they understand the profession as deeply as the technology."
— Guru Chahal, Lightspeed
Lightspeed and Sequoia Signal Sector Conviction
Lightspeed led the round with its focus on AI-native enterprise solutions. Sequoia, already a seed investor and backer of Harvey, brings continued conviction in legal AI. Additional participants include Mantis VC, SV Angel, and Operator Partners.
Legal AI Market Expands Rapidly
The legal AI market is projected to grow from $1.445B in 2024 to $3.918B by 2030 at a 17.3% CAGR. Competitors include Harvey, focused on law firm research and analysis, and Ironclad, centered on contract lifecycle management. Sandstone differentiates through deep integrations and agentic automation tailored to in-house teams.
High-Profile Talent Bolsters Execution
Recent hires include Jessica Nguyen, former Deputy GC for AI Innovation at DocuSign, as Chief Strategy and Legal Officer, and Marc Miller, ex-Google engineer with 17 years experience, as Distinguished Engineer. Advisors include legal ops pioneer Mary O'Carroll.