Childhood friends launch Seattle legal tech startup, raise $60M

Two childhood friends transformed a casual coffee shop meeting into a thriving legal tech startup based in Seattle. What began as a simple idea quickly evolved into a promising business venture, leveraging technology to innovate within the legal industry. Their vision and determination attracted significant investor interest, leading to a successful $60 million funding round. The startup is now poised for rapid growth, aiming to streamline legal processes and expand its market presence.

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Supio began as a simple idea over coffee at Starbucks. “We listed everything that frustrated us,” said Supio’s CEO Jerry Zhou, recalling a brainstorming session with longtime friend Kyle Lam. Zhou added that inspiration came from a startup event where the advice was to find problems that genuinely bother you - and build solutions around them. “That stuck with me. So we went for it.”

Now, four years later, Zhou and Lam are leading a rapidly expanding AI-driven legal tech company in Seattle. The company recently secured $60 million in Series B funding, led by Sapphire Ventures, following a $25 million Series A last August. According to the company, revenue has quadrupled since then. Supio has found a foothold in the competitive legal tech industry, where giants like Harvey (with $300M raised) and Clio (with $900M secured) dominate the scene.

Initially, the founders took a wide-angle look at legal tech, inspired by the legal challenges their immigrant families faced. Both are Garfield High School alumni and former Microsoft employees with experience in productivity software. They eventually zeroed in on personal injury and mass tort law - areas where firms handle many similar claims.

Such legal cases involve huge volumes of documents, like medical records and police reports, which are difficult for generic AI tools to interpret but ideal for a tailored AI approach. “We realized that the data in these types of cases tends to be fairly consistent,” Zhou explained. Supio’s AI reads through case files and constructs a “document graph,” identifying links that would normally require hours of manual review. The system can help draft case timelines, financial summaries, and other key materials.

Zhou clarified that Supio isn’t aiming to eliminate legal jobs. In fact, paralegals are among its strongest supporters. “This tech allows firms to scale more efficiently, handle larger caseloads, and process files more quickly,” he said. “Ultimately, it helps them serve clients better.” He pointed to one success story: TorHoerman Law used Supio’s platform to help win a $495 million verdict against Abbott Labs by processing thousands of pages of documents and drawing critical insights.

Supio uses a “human-in-the-loop” model to maintain accuracy - vital in a field where precision can determine case outcomes. “That extra layer of oversight really sets us apart from other tools out there,” Zhou said. Unlike many startups embracing remote work, Supio maintains a five-day in-office schedule at its downtown Seattle location.

Zhou admitted this policy narrows the talent pool, but he believes in the value of in-person collaboration, especially for young companies.

“Working in the same space strengthens bonds and boosts collaboration,” he noted. Many of Supio’s younger employees are experiencing their first in-office roles, and the company takes pride in fostering that environment. Plans are underway to grow the team and open satellite offices to expand talent access.

Supio recently welcomed several seasoned leaders: Jay Deubler (formerly of Avalara) is heading sales; Gwen Sheridan (from Highspot) is overseeing customer success; and Jim Sinai (previously at Salesforce and Procore) is leading marketing. Early investments came from SeaChange and Pack Ventures, but the bulk of their funding originates outside Seattle. Other investors include Mayfield, Thomson Reuters Ventures, Bonfire, and Foothill Ventures.

“The Bay Area just has a higher density of venture funds,” Zhou explained. “That’s where most of the money ended up coming from. But I really appreciate what Seattle’s startup scene has to offer.” Supio ranks No. 149 on GeekWire’s list of top startups and joins a growing list of legal tech innovators in the region, such as Predict.law, Clearbrief, SingleFile, Theo AI, and Paxton. Docusign also acquired local player Lexion last year for $165 million.

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Source: geekwire‍