Legal tech startup Steno announced the successful closure of a $15M Series B funding round led by Left Lane Capital, raising its total funding to $38.5M.
The firm, co-founded by Greg Hong, Dylan Ruga, and Dan Anderson, is reinventing the traditional court reporting agency model.
Steno’s primary product, DelayPay, solves a chronic cash flow issue by allowing law firms to defer service costs until their case concludes.
Ruga, a law firm owner himself, shared that he conceived the idea when all of his working capital was tied up in case costs, thus restricting the growth of his business.
“We discovered a real solution here to significantly improve the way lawyers operate their firms by providing highly reliable services supported by purpose-built technology and a financing layer. It was a massive opportunity to construct a top-tier service layer in this traditionally analog $17B market,” said CEO Greg Hong.
Steno also revealed a strategic investment from Clio Ventures, the direct investment arm of Clio, the world’s largest legal technology platform.
Hong said they were excited to welcome Clio as a strategic partner, and their integration within Clio’s platform will enable shared customers to monitor all their case activities in real time.
Steno’s rapid growth was spurred by the pandemic, which prompted an industry-wide reassessment of its relationship to technology for legal proceedings.
The firm swiftly expanded from 20 to over 100 employees and advanced from offering remote deposition technology with Steno Connect to providing a suite of products designed to enhance law firms and court reporters’ focus on essential work.
With the Series B funding, Steno plans to expand into new markets, develop adjacent service channels, and enlarge its tech team to further its mission of transforming the consumption of legal support services.
Left Lane Capital, the firm leading this funding round, invests globally in consumer-oriented internet and technology companies. Its investments include GoStudent, M1 Finance, Wayflyer, Bilt, Masterworks, Blank Street, Talkiatry, Tovala, among others.