Crosby is using AI to democratize legal services for individuals and small businesses

happy birthday. Happy birthday, Dan Ratiff. See you. Let's bring in Congratulations. Let's ring the gong. Hit the gong. Hit that birthday. Birthday gong. Thank you for hanging out with us. Thanks for hanging out with us. And let's bring in our next guest. Oh, I missed the sound cure for the soundboard. There he is.

Ryan, what's happening? Ryan, how you doing? Hello, gentlemen. Big day. Great to see you again. Big big day. Excited to get the update. It feels like uh Legal AI is having a moment.

I think we've had uh we've had hundreds of millions of dollars worth of Legal AI fundraisers in the last couple weeks, all in different kind of categories from ambulance chaser agents to Oh, yeah. to to just general firmwide software.

And still you're the you're the only company that uh is actually building the firm itself. So it still feels like a very contrarian bet. And uh I'm excited to get the update. Yeah, it's uh it's a good week for legal. It's a bad week to be a contract.

Uh we're really excited to get on the air and announce our uh 20 million series A with index Bentures and a lot Gil. Here we go. Today's index day. Index day. They're on a They're indexing the market. Except they're not. They're just picking the bangers. They're indexing the bangers. Uh give us give us an update.

You I I saw some numbers on uh on the timeline. You shared you were doing a thousand contracts like a month and now you're doing a thousand a week or something like that. What what's make it sound better?

When we got on the call, when we when we spoke last time in June, we just spent a few months getting our first few design partners up to speed. And as you mentioned, we built this first hybrid AI law firm, right?

And what that means is all of your sales agreements, MSAs, DPAs, NDAs, um, we're doing those as fast as we can. Um, using a mix of our BR attorneys in our licensed law firm and all the different AI tools we're enriching them with and speeding them up with. So, it worked.

Like the the kernel of the idea was there in June and it took us about 170 days to do our first thousand contracts and we've just accelerated over the summer. Now we do a thousand contracts every three weeks and that's going up by the day and we're just so excited.

I was just living I was just living in the future a little bit. Yeah. Thousand week. Yeah. Next time. Next time. Next time. Next time. Um that's awesome. How is how is Crosby How does Crosby fit in with uh with companies that have existing in in-house legal teams and external counsel?

Like how are you guys kind of slotting in? How are other lawyers that aren't you kind of reacting?

Yeah, I mean look, we, you know, some of the fastest growing companies we work with like Poly Market or Curser or Clay have lawyers and we consider ourselves a second set of arms for them and there is just such a backlog of the non-strategic agreements that aren't the most high priority things these lawyers should be doing and that's on us and we should be unlocking all of the speed of that legal department and making um the sales teams and also the procurement teams just love their legal even more.

So we we really consider ourselves um driving both the legal team and the go to market team. Fantastic. Uh that's awesome. What uh what are are are you guys primarily selling into the tech ecosystem?

Is that where like you know are you going to get to the B based on that on that or are you already kind of expanding outside of um you know Silicon Valley? Well, I think what's great is the short answer is we're expanding.

I think what's great is the companies that are building in Silicon Valley today in the AI space in particular and you know with like the 996 cultures just have an intensity and fervor to their growth that pushes us to to just um create unrealistic expectations for how quickly you can review contracts and with great accuracy.

And what that means is now we're getting all this inbound from much bigger companies saying, "Okay, like I want that, right? " Like a year ago, those companies weren't super comfortable with using the AI law firm, but now they're seeing that it's working.

And so I think we're just starting to see if it can work for these incredible companies that have grown to be not just startups anymore, right? Like you know, um some of our earliest clients like like Curser are pretty significant companies. Um it can work for them.

So it's really exciting to just right be at the beginning of that wave. Totally. Last question. Is the company named after Crosby, Stills, Nash, and Young? Uh, Crosby. This is actually the Crosby. Sydney Crosby. Sydney Crosby. Okay. Nice. Nice. Nice. Nice.

So, we have a lot of different Crosby named after probably the street in New York. Okay. Fantastic. Well, congratulations. La last uh very short question because I know we're we're running behind and I always love to ask one more uh one more question. What is I think I lost. Oh, there he is.

He made his hat celebrate today. There he is. Looking sharp. Looking sharp. Um, thank you very much. The uh now the the question I had was when in during the fundraising process when you're talking to investors, I'm sure a lot of people just would push back on like why why be the firm? Why not sell this as software?

What is your kind of updated talk track on why uh you why you're right? Obviously, you think you're you you think you're correct, otherwise you wouldn't build the strategy around this. But what what's the updated kind of push back on that? Yeah, I mean this is this is the big question.

I think we're taking in a really really long bet on the way the models are going to progress and we think that selling software to be a cobalt to lawyers is the limited bet, right? Right?

Like if we really think that AI is going to progress and the models will get good enough to replace lawyers and the hardest thing to do that we're dealing with is orchestrating what kinds of terms and provisions need to go to a human, a senior lawyer, a junior lawyer and what can go to AI then better to run all the orchestration and have lawyers in the loop constantly because every like three four weeks we're changing our orchestration and you can give more and more complex things to models and so I think our really long bet is you can have a law firm that does full stack work.

um and has great, you know, experienced senior lawyers in the loop, but needs to be building and perfecting their own smaller specialized models all inhouse. That collaboration of lawyers and engineers in our office sitting stagger desk by desk can't happen when you're selling software. It's essential.

Makes a lot of sense. Awesome. Well, excited to uh the way you guys are moving. I'm sure you'll be back on uh in no time. And uh thank you for the update and congratulations on the milestone. We hope so. And and happy to do your contracts. We're always here for you. I know. We got to We actually got to get on boarded.

We uh then we'll have a reason for that. Yeah, exactly.