Toronto-based legaltech startup Alexi has secured $4.5 million CAD in venture debt from TD Innovation Partners (TDIP), TD Bank’s full-service banking platform for technology companies.
Alexi develops artificial intelligence (AI) solutions for litigators. Founded in 2017, the startup sells AI-powered litigation software designed to help lawyers and legal teams produce research memos, identify relevant legal issues and arguments, and automate routine tasks.
The legaltech company plans to use this venture debt to deepen its existing offerings, develop more efficient, reliable, and scalable AI tools, enhance its customer experience, and continue expanding its presence with law firms across North America.
Alexi co-founder and CEO Mark Doble told BetaKit that the startup will use this debt to fuel growth initiatives.
Alexi co-founder and CEO Mark Doble told BetaKit that this funding strengthens the startup’s balance sheet and will be used to fuel its growth initiatives. In a statement, Alexi vice-president of finance George Taleporos noted that the financing “also establishes a robust partnership with one of Canada’s leading financial institutions.”
This venture debt comes eight months after Alexi closed a $15-million, all-equity Series A led by Drive Capital. That round was supported by existing investor Draper Associates and other undisclosed backers, and brought Alexi’s total funding at the time to over $20 million.
As to why Alexi decided to raise more now, Doble claimed the startup has been “seeing record growth and the ability to add more capital to increase growth made sense for us at this time.” Doble noted that these two financings have enabled Alexi to invest in sales and marketing and its new products within Advanced Legal Reasoning (ALR) and Alexi Enterprise.
Alexi’s other co-founder, former CTO Samarth Bhasin, quietly departed the company last September and has since begun building a new startup in the AI space, according to his LinkedIn profile. BetaKit has reached out to Bhasin for comment.
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“Sam’s departure was a mutual decision made in the summer of 2024, and we deeply appreciate the contributions he made during his time at Alexi,” Doble told BetaKit. “His leadership played a role in shaping the company’s early growth, and we remain grateful for his impact. While he has moved on from an active role, he continues to be a shareholder in Alexi.”
Alexi claims that it doubled the size of its team and customer base and updated its platform with enhanced AI research capabilities and the ability to analyze and summarize documents of up to 2,000 pages in 2024.
During this time, Doble said Alexi has also released several new products. These include ALR, an AI tool to help litigators analyze issues on any given litigation file, and Alexi Enterprise, a private, self-hosted AI solution to help large law firms streamline their workflows.
Doble claimed Alexi helps legal professionals save time and is now capable of creating memos on its own, leveraging its in-house AI model and learning based on lawyer style and comments.
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Today, Alexi has more than 40 employees. Doble declined to share Alexi’s current revenue or customer count but claimed the startup has been seeing double-digit growth month-over-month.
Launched in June 2024, TDIP marks TD’s entry into Canada’s innovation banking and lending landscape, which shifted following the shutdown of Silicon Valley Bank (SVB) in 2023. TDIP is staffed largely by former leaders from SVB and RBCx, RBC’s tech banking division.
In a statement, TDIP director of capital solutions Mark Kiyonaga said that Alexi’s “commitment to product excellence, strong leadership team and their ability to deliver align well with [TDIP’s] goal of supporting transformative companies that are changing the way industries operate.”
Kiyonga told BetaKit that Alexi meshes well with TDIP’s focus on supporting innovative tech solutions in AI and automation that enhance business efficiency and decision-making, and noted that TDIP has already lent to several AI-based startups and other early-stage tech companies.
UPDATE (02/11/25): This story has been updated to clarify that Alexi Containers is now called Alexi Enterprise based on new information shared by Alexi.
Feature image courtesy Alexi.