London-based LegalTech Robin AI has been put up for sale after falling short of its fundraising targets, putting nearly 200 jobs at risk.
The move follows reports that the firm cut a third of its workforce after failing to close a planned £38 million funding round.
The business, which has previously been backed by Nik Storonsky and Tom Blomfield, founders of Revolut and Monzo respectively, is now listed on an insolvency marketplace as it explores rescue options.
This also includes potential acquisition talks with several interested parties.
Founded in 2019, the company uses AI to streamline legal processes such as document review and contract management for major clients including PwC, KPMG and UBS.
Despite raising more than £40m in 2024, the firm has struggled to achieve profitability, posting £12m in losses on £8m in annual revenue.
The company’s financial difficulties come amid mounting concerns of an AI investment bubble, with analysts warning that inflated valuations across the sector could mirror the early 2000s dot-com crash.
The IMF recently cautioned that the surge in AI funding may expose investors to market concentration risk, while experts have noted that hype has outpaced sustainable performance in parts of the industry.
Robin AI, which also has offices in New York and Singapore, was once seen as a standout of London’s AI legal scene but now looks to have an uncertain future.
Co-founder James Clough left his role as CTO last November and his replacement, Tramale Turner, quit in October after just ten months in the role.