Synthetic anatomy startup AnthroTek has become the first UK company to close a funding round entirely using legal AI, cutting costs by 90% and setting what it calls a new precedent for startups.
The £950,000 seed round, part of £1.15m raised to date at a £10.5 million pre-money valuation, was handled without traditional lawyers.
It will be put towards product development and growth.
The Newmarket-based firm turned to Genie AI’s £30-per-month platform to draft, review and negotiate shareholder agreements, articles of association, term sheets and subscription agreements.
A further £550,000 tranche is expected in the next 12 months.
Co-founder and CCO Nazmus Tareque said he had been quoted £15,000-£20,000 by multiple law firms before opting for the AI route.
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“We completed a complex set of documents in a fraction of the usual time and with minimal to zero external legal spend with Genie AI,” he said.
“Beyond powering our funding round, Genie also handled our material transfer agreement, IP assignments and NDAs, allowing us to stay focused on scaling and innovating in synthetic anatomy.
“I know that many founders are frustrated by the current legal fee system. My background as a graduate in law helped give me the confidence to do things differently.
“The market will show no loyalty to traditional legal services if AI systems keep generating more value for the dollar spent. Why should it?”
By skipping third parties, London-headquartered Genie AI claims to speed up dealmaking, reduce friction and allow founders to deploy capital more effectively.
Rafie Faruq, co-founder and CEO of Genie AI, added: “This is an incredible landmark in startup and business history.
“Startups all over the world no longer have to pay £20-30k to do their investment deals. These fees are ridiculous – especially when these lawyers are making tweaks to what are essentially standard templates.
“By eliminating costly legal bottlenecks, AnthroTek has set a new standard for speed and trust in Legal AI for startup funding rounds. This is the future of startup financing.”
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