The Toronto-based legaltech company will use the money from RBC to acquire other legal AI companies. CEO Scott Stevenson said in a release that he hears from “a small legal AI company every few weeks looking for an exit” as consolidation accelerates and it becomes harder for new entrants to compete. (The Logic)

Talking point: Despite worries that big AI model makers like Anthropic will displace legaltech startups, Spellbook said it tripled its revenue last year and hit a $350 million valuation. Spellbook, which was founded in St. John’s, N.L., uses large language models like OpenAI’s GPT-5, but has customized the technology to focus on legal contract review. Stevenson told The Logic earlier this year that the company sees its work with companies like OpenAI as an advantage over other startups, because there are “a lot of companies burning cash” training custom AI models to compete with OpenAI that end up “being worthless.”