The U.S. is well-known for its high levels of litigation—a characteristic that often draws mixed reactions. While Germany leads in per capita lawsuits, the U.S. holds the record for the highest overall number of cases, driven by a dynamic legal industry that continues to expand, estimated at several tens of billions of dollars. Capitalizing on this trend, the AI startup Darrow has announced a significant funding round.
Darrow, which has created an AI-powered data engine to analyze extensive publicly available documents for potential class action lawsuits—focusing on issues such as data privacy breaches and environmental harm—has secured $35 million in funding.
This investment comes on the heels of a successful period for Darrow: the company reports that active cases initiated from its data insights currently represent approximately $10 billion in claims. Moving forward, Darrow plans to allocate funds towards hiring more engineers and business development professionals, expand into new legal domains with improved search and analytics capabilities, and enhance its large language models and technological infrastructure.
Leading this Series B funding round is Georgian, alongside F2 and previous investors Entrée Capital and NFX, bringing Darrow’s total funding to just under $60 million. The list of backers also includes Y Combinator, where Darrow participated in the W21 batch, and R-Squared Ventures.
Founded in 2020 and headquartered in New York City with an office in Tel Aviv, Darrow emerged in the wake of COVID-19, which significantly changed the way lawyers approach case acquisition. CEO Evyatar (Evya) Ben Artzi, co-founder with CTO Gila Hayat, noted, “Lawyers began to search online for leads and cases constantly,” in a recent interview.
Although Darrow has not disclosed its valuation or revenue details, Ben Artzi indicated that about 50 law firms, representing hundreds of lawyers, are currently utilizing the platform to proactively identify and develop new cases for pursuit.
Ben Artzi expressed a desire to broaden the model’s detection capabilities: “There are many other violations we're not discovering yet. We aim to enhance our Large Language Model to uncover more egregious activities.” He reiterated their goal of becoming the top resource for law firms. “There’s a significant labor market in legal services eager to take on meaningful cases that address pressing societal issues.”
While the notion of a startup seeking individuals to sue might elicit skepticism given the occasional misuse of the legal system, Darrow is committed to a different approach. Typically, class action lawsuits are perceived as too costly and risky for many law firms, often leaving smaller firms at a disadvantage in proactively identifying viable cases.
Ben Artzi believes that every lawyer is driven by the intention to champion causes worth fighting. He noted that harming even a small number of individuals should not deter legal action simply because it falls short of affecting millions. “Sadly, only well-known cases gain visibility,” he stated.
Darrow refers to its technology as a “justice intelligence” platform—a predictive analytics engine designed not merely for business intelligence but for identifying legal violations and potential litigation opportunities tailored for lawyers. The platform aggregates data from diverse sources—such as news feeds, social media discussions, consumer complaints, regulatory filings, court dockets, and environmental reports—synthesizing this information to reveal patterns indicative of wrongdoing and assessing potential legal outcomes.
For interested lawyers, Darrow's platform facilitates review and discovery processes without being a "black box." The company employs a team of legal data specialists, including former lawyers, to review insights and trends.
Darrow has pinpointed various areas for investigation, including environmental violations, personal data breaches, workplace discrimination, fraudulent practices, and antitrust issues.
Initially targeting attorneys—who are becoming increasingly adept at using AI tools for administrative and compliance tasks—Darrow secures upfront payments on a per-case basis, abandoning a pro bono model. However, there are plans to develop a portal enabling individuals to find relevant data and report their own issues, fostering greater access to justice.
“We are focusing on identifying the most impactful players, starting with litigators, but consumers will be integral to our long-term vision,” Hayat explained. Drawing from personal experiences—Ben Artzi as a litigator and Hayat as a frustrated consumer—the duo is dedicated to ensuring their mission remains aligned with their original ideals.
“Darrow’s founders identified a gap in the $63 billion class and mass action market and engineered a revolutionary language model to enhance the scale and efficacy of litigation teams,” noted Margo Wu, a lead investor at Georgian. “The company’s mission-driven collective of legal professionals and technologists was a pivotal factor in our decision to invest.”
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