Nearly £120 million invested in the first half of 2025
UK lawtech companies are attracting record levels of investment with new figures showing the sector is on track for its biggest year yet.
Between 1 January and 30 June 2025, 27 UK-founded lawtechs secured £116.6 million in funding — almost matching the full-year 2024 total of £139.6 million from 30 companies. The average deal hit £4.3 million, according to the LawtechUK Investment Snapshot, which tracks investments across the sector.
The report describes 2025 as “a breakout year for UK lawtech”, with both the wider sector attracting record levels of funding, visibility and growth. It adds that “investor appetite for legal innovation and scalable solutions is accelerating fast,” with eight deals recorded in the first half of the year alone.
The number of UK-founded lawtechs has also grown, from 270 in 2024 to 295 in 2025, “reflecting fresh innovation and new market entrants”.
The biggest investment hotspots were in documents and contracts (20%), risk management (17%) and matter management (14%), reflecting what the report describes as “strong investor appetite for solutions that streamline legal workflows, manage compliance, and address risk”.
While London still dominates, accounting for 68% of deals, the capital represents only 53% of total investment value (£63 million). “This suggests deals outside the capital are scaling larger than before,” according to the report, :with Scotland emerging as the second most active hub, pointing to a gradual broadening of the innovation landscape.”
LawtechUK panel chair Christina Blacklaws said:
“It’s both exciting and inspiring to see that the spectacular success in 2024 has already been eclipsed, with the first half of 2025 showing huge growth in the lawtech sector. I’m so proud that LawtechUK has had a real impact in driving this achievement, and I’m confident the sector will continue to grow significantly.”
The report builds on earlier research showing that major UK law firms are leading the way in adopting AI technology. Almost eight in ten of the top 20 firms have rolled out third-party AI tools, while nearly half have developed their own systems or partnered on customised versions. More than half now provide AI training for their lawyers, and six firms have even invested in AI start-ups or launched in-house incubators.
