Solve Intelligence Raises $12M for AI-Powered IP Workflows

The Evolution of Legal Technology and the Rise of Solve Intelligence

While significant advancements have been made in legal tech, many intellectual property and patent lawyers still rely heavily on traditional tools like spreadsheets, word processing software, and PDF documents for their daily tasks. Solve Intelligence, a Delaware-based startup, is aiming to change this by leveraging the power of generative AI to streamline these processes, recognizing the unique demands of patent law which requires both specialized domain knowledge and legal expertise.

Solve Intelligence's AI-Powered Document Editor

Solve offers an in-browser document editor, functioning similarly to Google Docs, but enhanced with an AI model designed to assist attorneys with the complex drafting and writing involved in intellectual property work and patent filings. The company asserts that its AI capabilities can significantly aid in areas such as patent drafting, responding to office actions, creating claim charts, and generating and refining invention disclosures.

Series A Funding and Growth

The startup has recently secured $12 million in a Series A funding round, spearheaded by 20VC, to accelerate its growth trajectory. This investment follows a period of increasing customer adoption and revenue generation.

Expanding Customer Base and Revenue

According to Chris Parsonson, co-founder and CEO of Solve, the company’s product is currently utilized by 200 IP teams across the United States, Europe, and Asia. Notable clients include manufacturers like Siemens and Avery Dennison, alongside prominent law firms such as DLA Piper and Finnegan. This expansion has been achieved without any dedicated sales or marketing personnel.

Financial Performance and Team Expansion

“We have achieved millions of dollars in Annual Recurring Revenue (ARR),” Parsonson stated, “with revenue experiencing approximately 25% month-over-month growth since our launch.” He refrained from disclosing the precise ARR figure. The company has assembled a team of highly skilled patent attorneys, AI researchers, and software engineers.

Profitability and Early Success

Solve has already reached profitability, having accumulated more capital than the $3 million seed funding it received in 2023 prior to the Series A round.

The Role of AI Advancements

The startup’s success is attributed not only to increasing enterprise acceptance of AI tools but also to recent breakthroughs in AI development that have enabled the creation of more sophisticated software for patent workflows.

Bridging the Gap Between AI and Legal Content

“Developing software for patent workflows was previously unfeasible just eighteen months ago,” explained Sanj Ahilan, co-founder and chief research officer. “We have developed evaluations and algorithms to effectively connect the output of general AI models, like ChatGPT, with professional-level legal documentation.”

Future Plans and Investment Allocation

The Series A funding will be used to scale the product, expand the team, and establish a new office in New York City this year. Currently employing 15 individuals, Solve plans to add approximately 20 more employees over the next twelve months. Additional investors in the round included Microsoft’s Venture Fund (M12), Thomson Reuters Ventures, and Y Combinator, bringing the total capital raised to $15 million.

Expanding into Life Sciences

A portion of the funding will also be dedicated to research and development focused on life science applications. Solve is collaborating with major pharmaceutical companies and law firms to enhance its patent drafting and prosecution capabilities, specifically addressing sequence listing and patent-related tasks.

Expanding Product Functionality

“We will intensify our R&D investments to incorporate more features for life science clients,” Parsonson clarified. “Furthermore, we will significantly invest in broadening our product beyond drafting and prosecution to encompass freedom-to-operate analysis, claim chart licensing, litigation support, and patent portfolio analysis and management tools for internal IP teams.”

Competitive Landscape

Solve operates within a competitive legal tech market, facing competition from companies like PatSnap, IPRally, HarveyAI, and Casetext (acquired by Thomson Reuters for $650 million in 2023).

Differentiating Factors

Parsonson believes Solve distinguishes itself through the superior quality of its AI output, its adaptability, and its user experience (UX).

Customization and User Preferences

“Patent attorneys each have a distinct style when drafting applications and responding to office actions,” Parsonson noted. “A key feature of our product is the ability to customize the AI to match an individual user’s unique style, and to seamlessly switch between different styles for various jurisdictions, technology areas, and clients. Users and IP teams can create their own proprietary libraries of customized AI styles.”

Strategic Partnerships and Integrations

He also highlighted that Solve’s partnerships with investors like Microsoft and Thomson Reuters will facilitate the expansion of its offerings and the delivery of AI systems specifically designed for patents on a large scale. “Legal workflows are deeply integrated with Microsoft products, such as Microsoft Word. Our partnership with Microsoft will allow us to enhance our integrations with Word.”