Spellbook is an AI legal tool that helps lawyers draft, review, and negotiate contracts directly inside Microsoft Word. It flags aggressive or unusual clauses, suggests market-standard language, and explains complex provisions in plain English, positioning itself as an AI co-pilot, or "Cursor for contracts," embedded in the tool lawyers already use rather than a separate platform.
Spellbook's central design choice is workflow-native adoption: by living inside Word, it removes the friction of switching tools and lowers the barrier to AI adoption for both law firms and in-house legal teams. Its capabilities have expanded over time from contract review toward broader transactional and drafting support.
The company was originally founded as Rally out of St. John's, Newfoundland in 2018, with Scott Stevenson as CEO and co-founder. Spellbook launched what it describes as the first generative AI contract review tool in 2022 and has since grown to thousands of law firms and in-house legal teams across many countries.
In October 2025 Spellbook announced a $50 million Series B led by Khosla Ventures, with Threshold Ventures and existing investors including Inovia Capital, Bling Capital, and Moxxie Ventures participating, valuing the company at roughly $350 million post-money and bringing total funding raised to over $80 million. The company has also used debt financing as part of its capital structure.
Spellbook differentiates through its native Word integration, lawyer-designed workflows, and a focus on transactional contract work. It competes in a crowded legal AI market against both incumbent legal-tech vendors and newer AI-first entrants, where accuracy, confidentiality, and trust are decisive buying factors.