Over £180 million in 2025
The UK’s legal tech sector pulled in a record £188.8 million in investment last year, marking a hefty 35% jump on the previous year, according to a new report.
The figures, published in LawtechUK’s second Investment Snapshot report covering the second half of 2025, and reflect what it describes as the “growing depth and maturity of the UK lawtech ecosystem”.
In the second half of 2025 alone, 20 UK-founded lawtech companies secured £42 million in funding, with the average raise coming in at £2.1 million. Four acquisitions were completed in the second half of the year, with twelve deals struck across 2025 as a whole.
The number of tracked UK-founded lawtech companies rose from 270 in 2024 to 315 by year end, a 16.6% increase in new entrants.
Christina Blacklaws, LawtechUK panel chair and former Law Society president, called it a moment to celebrate, pointing in particular to progress among underrepresented founders. “With 35% growth in 2025, lawtech is becoming a significant contributor to the economic success of legal services,” she said.
There was a notable increase in female-founded lawtechs, who represented 35% of companies raising funding in the second half of 2025. This is up from a share of 17% across the sector in 2024 to 20% by the end of 2025.
The report also reveals the areas where investment is most concentrated. Documents and contracts attracted the lion’s share of funding, taking 30% of funded activity in the second half of 2025. Risk solutions followed close behind at 25%. Knowledge management took 15% and matter management 10%. The report suggests this pattern reflects a “clear preference for tools that deliver immediate, measurable operational impact rather than longer-horizon bets.”
Regionally, while London dominated in terms of deal volume — accounting for 70% of all funding rounds — it represented only 36.7% of total disclosed investment value, highlighting a shift in which companies outside the capital are increasingly securing the larger cheques. Across the full year, Scotland led regional funding activity, with strong performances from the East of England and the Midlands.
Among the standout raises highlighted in the report, Scotland-based Encompass pulled in a whopping £17.79 million in late-stage venture capital funding, while North East-founded AttiFin AI secured a £5 million seed round. On the acquisitions front, Wales-based Credas, a LawtechUK-engaged company working in the risk space, was snapped up by SmartSearch, and litigation-focused CasePilots was acquired by Epiq.
This report comes after Justice Secretary David Lammy pledged to provide three more years of funding for LawtechUK, which initially launched in 2019.
