Lexroom, a Milan-based LegalTech startup focused on civil law jurisdictions, today announced a €42.9 million ($50 million) Series B round, eight months after the company’s €16.2 million ($19 million) Series A. This round brings its total capital raised to over €62.7 million ($73 million).
The Series B round was led by Left Lane Capital, with participation from Base10 Partners, Eurazeo, Acurio Ventures, early investor Entourage, and View Different. In March 2025, the company raised €2 million in Seed funding led by Entourage.
“When we started Lexroom, two things were immediately clear: lawyers needed a better way to work, and LLMs could deliver it. The missing piece was data — always-updated laws, relevant case law, and legal proceedings. Civil law countries need an AI legal engine that reasons data first. Excited to partner with the Left Lane team to build the AI backbone of the legal industry”, said Paolo Fois, CEO and co-founder of Lexroom.
Founded in 2023 by Paolo Fois, Martina Domenicali, and Andrea Lonza, Lexroom is a data-first company built on a proprietary infrastructure of millions of verified legal sources. Its architecture delivers reliable content, always traceable to the source, and it is the daily research, drafting, and analysis platform for more than 8,000 law firms and corporate legal teams.
According to the company, this round of funding supports a contrarian thesis: legal AI should be built from the data-layer up, rather than from fine-tuning generalist LLMs.
“Most products were designed model-first: take a general-purpose LLM, fine-tune it, wrap it in a legal interface. The problem? Practising lawyers cannot verify it, cannot cite it, and increasingly will not use it. The risk is no longer theoretical: more than 1,300 court filings have been documented containing AI-generated hallucinations — fabricated citations, non-existent precedents, misquoted authorities — including recent, high-profile apologies from top-tier law firms to federal judges,” mentioned the company in the press release.
Lexroom claims that it was built with a data-first approach on a proprietary infrastructure comprising over six million verified legal sources, covering legislation, case law, and regulatory materials, which are continuously updated and optimised for retrieval.
The company states that two-thirds of its users are daily active, and ninety-four per cent use it weekly. It states that research tasks that previously took hours now only take minutes, and drafts that once required days can now be completed in hours. This allows the same lawyer to serve more clients more quickly, all without compromising the quality of their work.
Explaining how the company protects sensitive data and complies with regulations, it mentioned on its website, “We are an ISO 27001 certified partner and operate in full compliance with the GDPR and the new AI Act. Our Data Security & AI Policy is transparent and always available to you. Here are our confidentiality pillars: Zero Training on your Data: The documents and information you upload are encrypted and are never used to train our AI models. Zero Retention Policy: We apply a zero-retention policy for your documents to ensure absolute confidentiality. Secure Access: We offer Single Sign-On (SSO) for secure and simplified company access management.”
Italy, home to approximately 250,000 registered lawyers and one of Europe’s most complex legal procedures, served as the testing ground. With this fresh capital, the company aims to expand across civil law Europe, beginning with Spain and Germany, with local teams and jurisdiction-specific capabilities developed alongside in-market firms.
Source: EU-Startups
