Sandstone Announces $30M in Funding to Bring AI Workflow Automation to In-House Legal Teams
New York, June 17, 2026 — Sandstone, the AI-native platform built specifically for in-house legal departments, today announced a $30 million Series A funding round led by Lightspeed Venture Partners. The round, which closed just six months after the company’s $10 million seed led by Sequoia Capital, brings Sandstone’s total funding to approximately $40 million.
The fresh capital will accelerate product development and expand Sandstone’s reach among corporate legal teams at small and mid-sized companies as well as select Fortune 500 organizations.
Solving the Real Pain Points of In-House Counsel
Unlike many legal AI tools that target law firms and focus primarily on research or document generation, Sandstone addresses the fragmented, high-volume workflow challenges unique to in-house legal teams.
Incoming legal requests arrive through a messy mix of Slack messages, emails, Jira tickets, and other channels. Sandstone’s AI agents automatically understand intent, gather relevant context from across the company’s systems, and route work to the right team member — eliminating manual triage.
“ They open up their laptop in the morning, they see all the work that’s come in through different intake channels, whether that’s Slack messages, emails, Jira… AI helps them route and triage that work appropriately, and then they can build custom workflows on top of our platform to actually execute work,” said Jarryd Strydom, Co-founder and COO of Sandstone.
The platform goes further by letting legal teams create and enforce their own playbooks. AI agents can draft, redline, and handle comments while respecting company-specific rules, permissions, and institutional knowledge. It integrates with more than 50 existing tools, including Google Workspace, Microsoft 365, Salesforce, Slack, and Jira, so teams don’t have to change how they already work.
Strong Early Traction and Investor Confidence
Sandstone already serves dozens of paying customers, including several Fortune 500 companies. The rapid follow-on round just months after the seed reflects strong investor belief in the company’s focused approach to vertical AI.
Lightspeed Venture Partners led the Series A, with participation from returning investors including Mantis VC, SV Angel, Operator Partners, Kearny Jackson, Daybreak Ventures, and Litquidity Ventures.
Lightspeed’s conviction in highly specialized vertical AI was a key factor in the investment. The firm believes that deep understanding of domain-specific workflows is essential for AI to deliver real productivity gains in complex environments like corporate legal departments.
Why This Matters for U.S. Companies
In-house legal teams at U.S. companies face growing workloads, tighter budgets, and increasing regulatory complexity. Many still rely on manual processes, shared inboxes, and generic tools that create bottlenecks and risk.
Sandstone aims to transform legal departments from cost centers into strategic assets by reducing cycle times, improving visibility into risk and capacity, and freeing lawyers to focus on high-value work.
The company’s emphasis on using each organization’s own data and playbooks — rather than generic large language models — helps maintain accuracy, consistency, and compliance.
Competitive Landscape
The legal tech AI space has seen significant activity in recent years. Tools like Harvey and Legora primarily serve law firms with research and drafting capabilities. Sandstone deliberately targets the in-house segment, where workflow orchestration and relationship management across internal systems are more critical.
Looking Ahead
With the new funding, Sandstone plans to deepen its product capabilities, expand its engineering and go-to-market teams, and continue building a community of in-house legal leaders.
As more companies adopt AI agents that understand their specific processes and data, Sandstone is positioning itself as the operating system for modern in-house legal departments.
The announcement underscores a clear trend in 2026: AI tools that solve narrow, high-pain vertical problems with deep workflow integration are attracting substantial capital and early enterprise adoption.
For more information, visit sandstone.com.
About Sandstone Sandstone provides an AI-powered workflow automation and legal relationship management platform designed exclusively for in-house legal teams. The platform unifies context across people, documents, past decisions, and business systems to help legal departments work faster, smarter, and more strategically.
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