Third Chair: Legal AI agents for media and entertainment IP infringement — $100K ARR, second-time exited YC founders
Jun 11, 2025
Key Points
- Third Chair, founded by second-time YC exits Yooav and Shuria, automates IP infringement detection and demand letter generation for in-house legal teams at media and entertainment companies.
- The company stacks contingency revenue from settlements with seat-based licensing fees, aligning incentives with customers while securing recurring revenue.
- Third Chair has crossed $100K ARR and is expanding beyond IP enforcement into marketing compliance workflows for brands, positioning itself as a vertical AI law firm.
Summary
Third Chair builds AI agents for in-house legal teams at media and entertainment companies. The platform automates IP infringement detection, evidence collection, and demand letter generation. Customers see results without exposure to the underlying agent infrastructure.
The founders, Yooav and Shuria, are both second-time YC exits. One previously built a fintech company; the other built a social media analytics platform. They met through the YC network and combined their experience on legal tech.
Third Chair combines software licensing fees with contingency revenue on settlements. This dual model aligns incentives with customers while maintaining recurring revenue. The company has crossed $100K ARR and works with major media and entertainment companies.
The founders are expanding beyond IP enforcement into adjacent verticals. Brands now use the platform for marketing compliance workflows. The long-term strategy is to become a vertical AI law firm serving multiple practice areas.