Arceus Legal raises $17 million to expand its AI-assisted law firm

Arceus Legal raised $17 million in funding led by Greycroft to hire attorneys, engineers and AI researchers and expand beyond commercial contract work. Craft Ventures, South Park Commons and other investors also participated, the company announced.

The San Francisco-based company is building a law firm in which licensed attorneys work with AI agents and proprietary software, rather than selling legal software for customers to operate on their own. Arceus says a licensed attorney handles every request, while AI agents and proprietary software support the legal workflow.

Arceus calls the system CounselOS. The company describes a workflow that gathers context from connected business systems, routes work to an attorney for review, supports negotiation and signature, and retains client preferences for later matters.

Rather than billing by the hour, the firm charges flat fees. Its public on-demand pricing lists $250 for a review of a nondisclosure agreement or order form and $500 to $1,000 for reviewing a standard contract of one to 24 pages. The pricing page also lists drafting, negotiation, employment, privacy and ongoing-counsel services.

Arceus says its contract reviews average three to five hours and come with an eight-hour guarantee: if the firm misses that deadline, the review is free. It also claims customers spend more than 70% less than they would with traditional law firms and that it has reviewed more than 12,000 contracts. Those turnaround, savings and volume figures were not independently audited in the opened sources.

Arceus also says its customer base quadrupled in September, but it did not disclose the starting or ending customer counts. Arceus did not identify the financing stage, valuation, financing instrument or investor allocations for the $17 million round.

For comparison, legal AI company Harvey raised $550 million in September at a $15.5 billion valuation.

Arceus says its team works in person in San Francisco. The new capital is earmarked for expanding that team across legal and technical roles as the firm moves from contract review into negotiation, drafting, employment, privacy and ongoing counsel.