🦄 Unicorner Startup of the Week:

Spellbook

✍️ Notes from the Editors

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The legal world is ripe with (somewhat intentional) inefficiency. After all, you don’t want the details in your contract to fall through in a time of need. But it doesn’t mean a second pair of “eyes” would hurt to check if a contract is missing a clause or needs something changed.

Give me your piles of mundane tasks from legacy industries, and I’ll give you an AI agent—or several—that can handle it.

This is, seemingly, the future.

- Ethan and Arek 🦄

AI copilot for transactional lawyers

Spellbook is an AI-powered tool tailored for transactional lawyers (ie. those focused on structuring, negotiating, and drafting contracts). Spellbook helps legal professionals draft, review, and analyze legal documents directly within Microsoft Word, saving time and increasing accuracy in document preparation—tasks that traditionally require extensive legal expertise and time. Key features include automated clause drafting, redlining (highlighting and modifying), risk identification, and even benchmarking contract language against industry standards to ensure alignment with market norms. It supports efficient workflows across multiple document types, from corporate agreements to real estate contracts and M&A documents, which allow lawyers to focus more on practicing law rather than drafting up documents.

🔗 Check it out: spellbook.legal

A dull story is dangerous.

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💰 Business Model

Spellbook sells to law firms, and charges per seat depending on the use case.

📈 Traction and Fundraising

📖 Founder Story

The concept of Spellbook began with CEO Scott Stevenson, who was a small business owner/founder in the musical instruments space. He found himself spending an unexpected amount of time managing legal contracts and paperwork. Meanwhile, his friend and future co-founder/CRO, Daniel Di Maria, was practicing law, where he found that much of his time was consumed by repetitive drafting and editing of legal documents. 

Recognizing the pain points from both the legal and business perspectives, they saw an opportunity for improvement. To help build the right product, they brought on Matt Mayers as Chief Experience Officer, whose expertise in design and customer experience would be crucial in crafting an intuitive solution for lawyers. With Stevenson leading on the technical side and Di Maria contributing legal insights, the team stayed lean, refining Spellbook through hundreds of interface iterations, experiences, and use cases before landing on the product that you see today.

💼 Opportunities

🔮 Our Analysis

Spellbook addresses the labor-intensive work of drafting, reviewing, and analyzing legal contracts and documents. This niche is significant, as corporate law is laden with complex contracts and compliance requirements that need precise expert review. Spellbook operates in a crowded space with a growing number of legal tech startups. The company has since gone through over a hundred iterations and has landed on a specific use case as opposed to being a more generic AI chatbot for lawyers. Now, the company has carved out a distinct position by focusing on contract drafting, editing, and review. In just a short period, it has been adopted by over 2,700 legal teams.

Transactional law is notoriously time-consuming, with hours typically spent per contract on modifications, clause negotiation, and identifying terms that conflict with or stray from industry standards. Spellbook mitigates these pain points by integrating AI into Microsoft Word, allowing lawyers to automate changes, find missing clauses, and add comments directly in their native workflow. This setup eliminates the friction of switching between platforms, making Spellbook highly convenient and allowing legal teams to save time on manual review and contract drafting.

Spellbook's leadership team brings a deep understanding of the legal field, product design, and engineering, equipping them to navigate the complexities of legal technology. As Spellbook continues to improve and iterate on its offerings, its potential to reshape AI-assisted legal tech for corporate teams grows evident. Its existing momentum, combined with a focus on transactional law and a strong founding team, positions Spellbook as a disruptive force in the legal technology landscape.

📚 Further reading

Written by Matthew Huo

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