Silicon Valley fund Khosla Ventures led the round, and its managing director Keith Rabois will join the board of the Toronto-based startup. Returning backers included Inovia Capital and Bling Capital. (The Logic)

Talking point: Spellbook’s technology plugs into word processors to help lawyers draft and analyze contracts, suggesting additions and identifying risks they may need to address. The tool speeds up the process and reduces errors, CEO Scott Stevenson said in an August interview. “It’s really easy to miss something when you’re reviewing a 30-page agreement.” Spellbook’s clients include small and mid-sized law firms and the in-house legal teams at big businesses like Nestle and eBay. Startups like Clio and Harvey are raising and spending huge sums as they vie to become the law world’s default AI platform. Spellbook is focusing on legal services related to transactions, and will use the new money to develop new tools and expand its 110-person team.