Legal AI platforms continue expanding quickly as firms like Harvey and Legora attract large funding rounds in a competitive market. While many solutions target law firms, certain startups see untapped potential in other segments of the legal industry.

Sandstone announced $30 million in Series A funding on Tuesday, directing its efforts toward the complex workflows and systems that challenge internal legal departments at companies.

Lightspeed Venture Partners led the Series A, with participation from existing investors including Sequoia, Mantis VC, SV Angel, Operator Partners, Kearny Jackson, Daybreak Ventures, Litquidity Ventures, and additional backers. The round follows a $10 million seed investment completed in January and led by Sequoia.

The startup initially targets legal departments at small and medium-sized businesses, according to the founders.

Co-founder and chief operating officer Jarryd Strydom noted that team members begin their day reviewing tasks arriving through multiple channels such as Slack messages, emails, and Jira tickets. AI supports routing and prioritization of this work, allowing users to create tailored workflows on the platform for activities like drafting documents, conducting reviews, and delivering legal analysis.

Sandstone centers on relationship oversight and workflow automation customized for in-house legal needs, setting it apart from reasoning-focused tools like Harvey and Legora. Strydom explained that this emphasis enables stronger results in corporate settings where general AI tools often fall short.

One key investor conviction at Lightspeed centers on specialized vertical AI applications, Strydom added, since detailed workflow knowledge proves essential for effective AI integration.

The company will encounter competition from leading AI developers expanding into legal applications. Anthropic has grown its Claude for Legal tools, introducing capabilities in May for case law searches and deposition preparation.