Investment in legal technology companies is on course for a record-breaking year, with the first six months of 2025 outstripping the whole of 2025 according to the latest industry snapshot by LawtechUK.
UK-founded lawtech companies raised £226.9 million in the first six months of 2026, surpassing the £188.8 million invested during the whole of last year. 69% of that funding, some £156 million went to three companies; conveyancing and real estate workflow specialist Orbital; in-house tools and workflow business Wordsmith AI; and Lawhive, software that combines technology with regulated lawyers to provide legal services to consumers and small businesses.
Conveyancing and real estate business secured a significant uplift in funding rising from from £12.2 million in 2024 to more than £60 million in the first six months of this year. Consumer-focused lawtech accounted for 28% of investment in the first half of 2026, up from 8% in 2024.
The report explains there is a maturing of the lawtech ecosystem with more money being concentrated on later-stage businesses with £160.3 million and more than 70% of total investment. LawtechUK said 27 business received investment in the first half of 2025. In 2026 to date that has fallen to 17. Meanwhile the average deal size rose from £4.3 million to £13.35 million.
But there is a strong emerging pipeline of lawtech adds the report with an 82% year on year growth in early-stage funding: “For the first time, the UK lawtech ecosystem is displaying many of the hallmarks of a mature technology market: larger funding rounds, stronger follow-on investment, greater regional specialisation, and growing investor confidence in market leaders. The story of H1 2026 is not just one of growth, but of a sector entering its next stage of development” said LawtechUK.
The Ministry of Justice-backed initiative provides mentoring, market intelligence and opportunities to connect with investors and customers for firms looking to drive digital transformation and innovation in the UK legal sector. The investment snapshot suggests investors are putting substantially more money into technology that optimises existing legal work. Across the tracked ecosystem, companies categorised as using goal-driven optimisation, such as document management, matter handling and transaction execution, have attracted more than £400 million, compared with £92.8 million among businesses focused on generative technology, such as document drafting and content creation.
Commenting on the latest figures Christina Blacklaws, Chair of LawtechUK, said: “This Snapshot paints the picture of a sector coming of age. We are seeing larger funding rounds, stronger scale-ups, growing regional ecosystems and greater investor confidence in businesses solving real-world legal challenges.
“It is encouraging to see innovation expanding beyond traditional legal service delivery, with growing interest in consumer-focused solutions and technologies that could improve access to justice. The UK is establishing itself as a global leader in legal innovation, and I look forward to seeing the next generation of lawtech companies continue to grow, scale and deliver impact.”
Sarah Sackman KC MP, Minister of State in the Ministry of Justice, added: “I am pleased to see the continued strength and growing maturity of the UK lawtech sector reflected in this latest Investment Snapshot. In the first six months of 2026, 17 UK-founded lawtech companies raised £226.9 million – already 20% more than was raised during the whole of 2025. More than 70% of investment is now going into later-stage businesses, while early-stage funding has also grown strongly.”
“Together, this points to a sector that is not only attracting capital but increasingly supporting companies to scale. The Government wants to build on this momentum. Through the LawtechUK programme, we will continue to support innovation, tech adoption and regional growth across the sector.”
