This consultant advised Big Law at McKinsey. Now Sequoia is backing his AI startup for in-house lawyers. (www.businessinsider.com)

Sandstone, an AI startup founded by former McKinsey consultant Nick Fleisher, has raised $10 million in seed funding led by Sequoia Capital, with an aim to transform in-house legal teams by developing a comprehensive system of record for managing legal work. The platform is designed to streamline contract drafting and review by leveraging AI to analyze past agreements, contextualizing roles across various internal systems like email and Salesforce. This approach helps lawyers efficiently manage requests and focus on critical decision-making rather than administrative tasks. The significance of Sandstone’s offering lies in its ability to fill a void within the legal tech landscape, as many legal departments struggle with outdated processes. While competitors like Harvey and Clio target law firms and small practices, Sandstone aims specifically at corporate legal teams, responding to a growing mandate for AI adoption from CEOs and boards. With the legal tech market rapidly expanding—demonstrated by last year’s doubling of investment—Sandstone’s innovative solution could enable businesses to leverage the expertise of their legal teams more effectively, potentially reshaping how law is practiced in corporate environments.