AI Startup August Raises $7M to Revolutionize Legal Industry

On August 5th, 2025, the AI startup August, founded just two years ago by a team of Columbia University alumni, revealed that it had secured $7 million in seed funding. The round was led by prominent venture capital firms NEA and Pear VC, along with several angel investors.

August's mission is to revolutionize the legal industry by leveraging artificial intelligence to streamline routine, document-heavy tasks. The founders, Rutvik Rau, Thomas Bueler-Faudree, and Joseph Parker, recognized that the legal field is built on vast volumes of literature, from case law to contracts and filings. By automating this time-consuming paperwork, August's AI platform is freeing up lawyers to focus on higher-value, strategic work.

This development is particularly significant for midsize law firms, which often lack the deep pockets of their larger counterparts. The ability to cut costs and boost productivity through AI-powered solutions can give these firms a crucial competitive edge. August currently has a team of 12, but the company expects to expand to 25-30 employees by the end of the year as it continues to grow.

While August operates in a competitive arena, with established players like the OpenAI-backed legal AI startup Harvey, the founders remain confident in their approach. "The future is one where AI partners with individuals to be a step further than where the industry is today," said Rau. "We're enabling lawyers to be more productive by eliminating some of the work, so they can actually spend a lot more time working with their clients, understanding their needs and being the strategic value partner for them."