Lexroom Surpasses €10 Million ARR One Year After Launch
Lexroom has grown its annual recurring revenue from under €800,000 to over €10 million in just 12 months, serving more than 7,000 law firms as it expands its data-driven AI infrastructure across Europe.
Twelve months ago, recurring revenues were just under €800,000. Today, they have exceeded €10 million.
This leap marks the transition from a promising young AI player in the legal sector to an established business: it is no coincidence that only 10% of start-ups globally exceed €10 million in ARR, with the average taking around five and a half years to do so[1]. Lexroom did it in one.
Founded by Paolo Fois, Martina Domenicali and Andrea Lonza, three under-30s with backgrounds in product, law and AI engineering respectively, the company has built its expansion starting from the bottom of the market: small and medium-sized law firms. In just one year, it has multiplied its Annual Recurring Revenue by more than twelve times, positioning itself among the fastest-growing AI Company with SaaS model in the world.
Today, the company serves more than 7,000 active customers, most of which are small and medium-sized law firms. About 6,500 customers are firms with between one and ten professionals, a segment traditionally underserved by enterprise-level legal technology. This is where Lexroom has found its target market.
‘We chose to start with the largest and most widespread segment of the market, small law firms, to build a vertical AI infrastructure for law, with a data-first approach,’ explains Paolo Fois, CEO of Lexroom. ‘If you can create real value for a three-person firm with limited resources and tight deadlines, then you can do it for any business. That's where solid and truly sustainable growth comes from. We aim to close 2026 at €40 million, with a significant portion generated abroad.’
A pure SaaS model with strong usage and retention metrics
Lexroom operates as a pure AI Company with SaaS model: annual subscriptions, modular pricing, and no embedded consulting component. The company reports:
93% gross retention Over 120% net revenue retention
65% daily active users over monthly active users
That last metric is particularly notable. Nearly two out of three monthly users log in daily, a frequency that, according to the company, exceeds that of many general-purpose AI tools.
In software, high usage intensity is often the clearest signal that a product has become workflow-critical.
A “data-first” alternative to LLM-first legal AI
While many start-ups have adopted an LLM-first approach, Lexroom has chosen a different path: building a data-first infrastructure based on over 6 million certified regulatory and case law sources.
Artificial intelligence, therefore, does not generate responses on a purely statistical basis, but operates on a proprietary retrieval system that integrates verified datasets, drastically reducing the risk of hallucinations.
“Our goal is to build a vertical AI infrastructure for law, not a chatbot for lawyers, to become the operating system for legal work in Europe,” explains Andrea Lonza, CTO.
$16M Series A led by Base10 Partners
In 2025, Lexroom closed its €16 million Series A round, led by Silicon Valley venture capital fund Base10 Partners, with participation from Spanish fund Acurio Ventures, Diego Piacentini's View Different (who also took on the role of senior advisor to the company), Riccardo Zacconi, founder of King (Candy Crush), along with other strategic angel investors, current investors such as Entourage, Verve Ventures, and Joe Zadeh and Rexhi Dollaku, General Partner of Base10 (who joined the board and opening a new chapter fort the company’s international scaling strategy). The funding follows an earlier €500K pre-seed and €2M seed round, bringing total capital raised to over €18 million.
Rapid team expansion and international rollout
Over the past 18 months, Lexroom has tripled its headcount from 30 to 90 employees and plans to reach 200 by the end of 2026. Hiring will focus primarily on AI engineering, product development, and international expansion.
The company has already launched operations in Spain and Germany, following a structured expansion playbook: build a local team, integrate national legal datasets, replicate the SME acquisition model and expand into enterprise clients.
“Our objective is to open a new country every quarter across the main civil law jurisdictions in Europe,” says Martina Domenicali, co-founder and CRO.
From bottom-up adoption to European ambition
Lexroom’s early traction came from small firms, but the company is increasingly targeting enterprise law firms and corporate legal departments. Clients include major law firms and corporate players across Italy. The broader ambition is clear: to become the European leader in vertical AI for law.
“Artificial intelligence won’t replace lawyers,” Fois concludes. “But it will fundamentally change how legal work is done. We want to be the infrastructure that enables that transformation. And we’re still at the very beginning.”
