Sandstone, an emerging player in the legal technology sector, is poised to disrupt the way in-house legal teams operate. Founded by Nick Fleisher and Jarryd Strydom, the company has already garnered significant attention, having secured funding from Sequoia Capital just two months after their initial meeting.
The serendipitous partnership between Fleisher, a former McKinsey engagement manager, and Sequoia reflects a broader trend in the legal technology industry. Fleisher’s ambition to create a solution for overworked legal teams aligns with Sequoia’s keen interest in leveraging artificial intelligence to transform traditional sectors. Fleisher’s journey began when he recognized the potential of AI to ease the burden on general counsels and mid-market in-house legal teams who often rely on outdated methods, such as spreadsheets, for contract management.
Before joining Sequoia, the author of the profile had contemplated launching a legal tech company, inspired by his experiences at Google and VMware. He had witnessed firsthand the cumbersome process of extracting key terms from contracts, leading him to believe AI could streamline these operations. Fleisher’s approach to establishing Sandstone echoed those early ideas, with a mission focused on using AI to automate the labor-intensive tasks that have long plagued legal professionals.
During their initial discussions, Fleisher expressed a strong desire to start his own venture, indicating a preference for entrepreneurship over joining an existing company. This revelation opened the door for Sequoia to partner with him on his entrepreneurial journey, which ultimately led to the establishment of Sandstone. The company aims to provide a comprehensive AI-native workflow engine that learns from a company’s legal intelligence, allowing legal teams to shift from a reactive to a strategic role.
When discussing the scope of Sandstone’s offerings, Fleisher emphasized the importance of addressing the inefficiencies that plague the legal profession. The dynamics of the legal landscape make it well-suited for the application of large language models (LLMs), as law fundamentally relies on text-based inputs and outputs. Additionally, the legal profession is characterized by highly trained individuals performing repetitive tasks, further underscoring the potential for AI to bring about significant improvements.
Sandstone’s product development has been rapid, with Fleisher and Strydom building a minimum viable product (MVP) within weeks of their initial discussions. Their ability to quickly engage with prospective customers demonstrates the founders’ drive and execution capabilities. The palpable energy in Sandstone’s Brooklyn office reflects their commitment to transforming the legal landscape, with anecdotes of late-night work sessions serving as testament to their dedication.
Sequoia’s confidence in Sandstone has grown, leading to their decision to lead the company’s seed round after already backing other legal AI ventures like Harvey, Crosby, and Ironclad. These previous partnerships have provided Sequoia with insights into the rapidly evolving legal tech market, bolstering their belief in the potential of Sandstone to redefine how legal teams operate.
As Sandstone continues to develop its solutions, the founders remain focused on transforming the business of law. The convergence of AI with legal technology not only offers the prospect of enhanced efficiency but also signals a significant shift in how legal work is conducted. The future of legal operations may very well hinge on innovations brought forth by companies like Sandstone, marking a pivotal moment for the industry.
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