AI Legal Platform August Secures $7M, OpenAI Exec Invests
August, an artificial intelligence (AI) platform specifically developed for midsize law firms, has successfully raised $7 million in a recent funding round. Formerly known as VecFlow, the company states its platform provides configurable AI workflows designed to adapt precisely to each firm’s specific tasks.
The funding round was co-led by venture capital firms NEA and Pear VC. Strategic participation came from leading law schools, Afore Capital, and a roster of notable angel investors. These included Gokul Rajaram, Geoff Charles (Chief Product Officer at Ramp), David Azose (Head of Engineering at OpenAI), and Kevin Zhang (Partner at Bain Capital Ventures), among other prominent backers.
Rutvik Rau, Co-founder and CEO of August, commented on the platform’s flexibility: “August empowers midsize law firms to tailor AI around their unique operational playbooks, whether they are advising clients in Miami, Sydney, or Mumbai. Our approach combines modular technology with personalized onboarding led by both attorneys and engineers, helping firms consistently deliver high-quality legal services that foster growth and enhance client relationships.”
August targets the underserved market of midsize law firms, which comprises over 50,000 practices worldwide, collectively employing half a million lawyers. The company explains that its platform enables these firms to adopt alternative or flat-fee billing models and significantly accelerate document-heavy tasks. These tasks include contract review, due diligence, discovery preparation, and drafting.
The platform utilizes a modular AI architecture engineered to closely emulate attorney thought processes, aiming for high accuracy, traceability, and quality in legal work. August emphasizes that all deployments can operate securely behind firms’ internal firewalls, addressing regional data-residency requirements.
Firms currently using August have reported substantial positive impacts. Hicksons, a prominent Australian firm, claimed a 90% reduction in the time required to review 5,000 negligence files, which allowed them to expand their caseload capacity and compete more effectively for new clients. ELP, one of India’s largest tax firms, reported cutting diligence time by 60%, enabling more advisory work and optimized fee structures. Additionally, a Florida litigation team reportedly used August to analyze 40,000 pages in a $100 million dispute, resulting in seven-figure savings in external counsel costs and weeks of partner time.
August was founded in 2023 by Rutvik Rau, Thomas Bueler-Faudree, and Joseph Parker. The founders bring extensive expertise across AI, legal practice, and enterprise technology, having met at Columbia University’s Machine Learning research lab. Their collective experience spans midsized law firms, Blackstone’s data science team, and leading tech companies such as DoorDash and PayPal.
Headquartered in New York, August plans to allocate a portion of the newly secured funds towards expanding its staff.