Inside the Deal | Growth Capital Execution
Sector: Legal Technology / Enterprise AI
Transaction Type: Series A Growth Financing
Deal Size: Up to $105 million
Lead Investor: General Catalyst
Deal Status: Completed
Completion Date: February 2025
Inside the Deal is Finance Monthly’s transaction feature combining independent deal reporting with executive insight into how complex growth financings are structured, positioned, and executed.
Deal Overview
In February 2025, Palo Alto–based legal technology company Eudia closed a Series A funding round of up to $105 million, led by General Catalyst, with participation from Floodgate, Sierra Ventures, Hakluyt Capital, Defy, Everywhere Ventures, B3 Capital, Backbone, Firsthand, and a group of prominent angel investors.
The financing marked Eudia’s first public step after 18 months operating in stealth — and immediately positioned the company as one of the most heavily capitalised new entrants in enterprise legal AI. Rather than emerging gradually through pilots or limited releases, Eudia chose to debut alongside a growth-scale funding round, signalling both product maturity and investor conviction.
The round reflects a broader shift in how capital is flowing into legal technology: away from narrow point solutions and toward platforms capable of reshaping how in-house legal teams operate at enterprise scale.
Strategic Rationale Behind the Raise
Legal departments face a growing structural problem. They are expected to move at business speed while maintaining near-zero tolerance for risk — all while managing ballooning external legal spend and fragmented internal knowledge.
Eudia’s platform is built around what it calls Augmented Intelligence: AI agents designed to work alongside experienced legal professionals rather than replace them. The system allows organisations to retain, structure, and deploy institutional legal knowledge securely across workflows.
CEO and co-founder Omar Haroun has been explicit about the problem the company is trying to solve. “Most legal departments have lost control of their budgets and their knowledge,” he has said publicly — a view that underpins Eudia’s strategy of targeting not just software budgets, but the far larger legal services market.
That positioning was central to the Series A. For General Catalyst, the appeal was not incremental automation, but the opportunity to fundamentally change how legal work is delivered, scaled, and governed inside large organisations.
Execution and Enterprise Readiness
Unlike many early-stage AI platforms, Eudia entered the market with active deployments inside Fortune 500 legal departments. Organisations including Cargill, DHL, Duracell, and Coherent were already using the platform prior to the funding announcement, providing live validation in risk-sensitive environments.
That traction shaped how the financing was executed. Rather than staging capital against experimental milestones, the round was structured to support rapid enterprise rollout — funding product expansion, customer onboarding, and international growth in parallel.
Haroun has previously described the company’s emergence from stealth as a decisive moment. “We launched Eudia out of stealth, raised more than $100M in funding, welcomed an incredible group of new teammates, and pushed hard to bring Augmented Intelligence into the world in a meaningful way,” he said in a public post following the raise.
From an execution standpoint, the move reduced signalling risk in a crowded AI market. The scale of the Series A immediately differentiated Eudia from smaller legal AI vendors still proving enterprise viability.
Technology Philosophy and Risk Management
A defining feature of Eudia’s approach is its emphasis on human-in-the-loop design — a critical factor in legal environments where accuracy, provenance, and accountability are non-negotiable.
CTO and co-founder Ashish Agrawal has repeatedly stressed that pure automation is insufficient in high-stakes domains. “In domains where humans are doing things manually, the accuracy needs to be 100 percent — and therefore AI out of the box will never actually work without human involvement,” he has said in prior interviews.
Agrawal has also highlighted the importance of traceability in AI outputs. “It’s a problem when [an AI platform] doesn’t have citations. You don’t know where it’s drawing from,” he noted — a concern that has shaped Eudia’s emphasis on transparency and contextual grounding.
This philosophy resonated with enterprise customers and investors alike, particularly as regulators and boards scrutinise AI adoption more closely.
Operational Discipline and Scaling
Operationally, the Series A reflects confidence not just in the technology, but in Eudia’s ability to scale responsibly.
COO and co-founder David Van Reyk, a former private equity investor at CVC Capital Partners, brings a discipline more typical of later-stage growth companies. His background in executing complex transformations and M&A has helped position Eudia to manage enterprise deployments, long sales cycles, and operational scaling simultaneously.
While Van Reyk maintains a lower public profile than his co-founders, his role has been central to translating product ambition into execution — ensuring the organisation can support global customers without compromising security, reliability, or trust.
What the Deal Signals
Eudia’s Series A is emblematic of a broader recalibration in legal technology investment. Capital is increasingly backing platforms that can embed deeply into enterprise operations, reduce reliance on external counsel, and preserve institutional knowledge over time.
As Haroun has observed, legal expertise is often fragile — lost when people leave, siloed in documents, or trapped behind billable hours. Eudia’s bet, supported by this financing, is that AI-augmented systems can finally change that dynamic.
For Finance Monthly readers, the deal underscores a key point: the next phase of AI adoption in professional services will be defined less by novelty and more by execution, governance, and trust. Eudia’s Series A suggests investors believe those hurdles are now surmountable.
About Inside the Deal
Inside the Deal is Finance Monthly’s transaction-focused interview and analysis series, combining independent reporting with executive and advisor insight to explain how deals are structured, executed, and scaled.
