Legal spend analysis specialist Brightflag has raised €23m in a growth equity investment round led by One Peak.

Brightflag provides a legal spending and matter management platform aimed mostly at corporate legal departments, and plans to use the money to to expand its international footprint and accelerate product innovation.

The company says that data from Gartner suggests that corporate legal officers have seen their role in coordinating law firm billing and tracking outside counsel spending grow by 53% and 32% respectively, making it a key priority fro businesses.

However, says Brightflag, enabling tools are not keeping pace with these evolving priorities. Nearly half of survey respondents cited technology solutions and adoption rates as the most prominent operational weakness revealed during the Covid-19 crisis.

Chief executive Ian Nolan  (pictured) said: “For the second time in the last 15 years, companies are grappling with the legal and financial implications of a global recession. Brightflag is providing corporate legal departments with unparalleled visibility into their operations as they work to maximise the strategic value of their spending.”

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The company’s solution relies on AI to give “a data-based perspective of not only the rates and subtotals billed within a legal invoice, but the specific tasks and activities performed as well”. 

The resulting insights have already helped brands like Dropbox, Volvo, and AccuWeather better evaluate law firm performance, refine resourcing strategies, and sharpen financial forecasts, the company says.

Dropbox vice president of legal Dan Cook added: "Brightflag has transformed the way we manage our legal spend. We've automated away several time-consuming processes, gained complete visibility on how we're tracking against budget, and been supported by top-notch customer service at every step.”

One Peak managing partner Humbert de Liedekerke commented: “We are incredibly excited to back Brightflag and its founders, as we see enormous potential in accelerating digital transformation within the legal department and redefining its role from cost centre to essential business partner.”

Brightflag says it will add at least 60 new employees to its US and global teams over the next year.