Stricken legal start-up Robin AI swooped on by rival | Money News

A legal technology start-up which was feted as one of the industry’s most promising players after raising tens of millions of pounds from blue-chip investors is on the brink of selling the bulk of its operations to a rival.

Sky News understands that Robin AI, which was forced to lay off a big chunk of its workforce during the autumn after a new funding round failed to materialise, is selling its managed services division to Scissero, a UK-based peer.

Sources said the deal, which was said to have been struck at a knockdown price, was likely to be announced publicly on Wednesday.

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In 2023, Robin AI was hailed by Rishi Sunak, the then prime minister, for “revolutionising the legal profession, writing contracts in minutes, saving businesses and customers time and money”.

The‍ company was backed by investors including the Japanese giant SoftBank and Episode1, a prominent London-based venture capital firm.

Its combination with Scissero will take the latter’s client base to more than 100 companies and enable it to compete more directly with legal AI companies such as US-based Harvey and Sweden’s Legora.

Robin AI’s customer base includes large asset managers, investment banks and the likes of Pfizer, PepsiCo and General Electric.

The enlarged company will have a workforce of roughly 150 people, although Scissero is not acquiring Robin AI’s technology platform.

In a statement issued to Sky News, Mathias Strasser, Scissero chief executive, said: “The AI-enabled legal services market is entering a period of meaningful consolidation, and the UK is exceptionally well-placed to lead the next wave of innovation in AI and legal technology.

“We are proud to be taking an early, proactive role in shaping this evolution, bringing together best-in-class talent, advanced technology and scalable delivery.”

Richard Robinson, Robin AI chief executive, said: “Becoming part of Scissero marks an exciting new chapter for our managed services team and our clients.

“Scissero’s global capabilities, regulated legal services offering, and market-leading technology platform mean our clients will now benefit from a broader set of solutions while continuing to receive the high-quality service and fast turnaround times they rely on.”