At two pivotal moments in the company's history, the rising star in legal tech turned to Marks Baughan for help in securing millions.
With its beginnings as a Y Combinator startup, Casetext, Inc. quickly established itself as a leading force in AI-powered legal research and drafting. The company — now part of Thomson Reuters — earned a reputation as one of the most innovative and important players in legal technology.
At two milestone moments in its history, the startup turned to Marks Baughan to shape and guide its trajectory. In 2021, when Casetext needed support securing critical growth financing, it leveraged the firm’s expertise to achieve a highly successful Series C. And in 2023, when an acquisition opportunity arose unexpectedly, leadership called on Marks Baughan to facilitate a watershed deal that captured global attention.
“The second time around, we knew we wanted the support of Marks Baughan because they offered a different level of strategic consideration and negotiation,” former Casetext Cofounder, Chief Operating Officer, and General Counsel Laura Safdie said.
The transactions would demand support that went far beyond advisory. In both instances, Casetext needed a partner that could provide continual analysis, an expert’s outlook, and flawless execution while leadership remained focused on running a fast-growing business. Here’s how that partnership shaped Casetext’s success at its most defining moments.
Forging the Path: Marks Baughan Guides Casetext Through Pivotal Series C Financing
Founded in 2016, Casetext initially managed its fundraising independently — successfully completing Series A and Series B rounds that attracted prominent venture investors. By 2021, however, the process had grown significantly more complex. Leadership knew Series C funding would involve larger investors, deeper scrutiny, and heightened time demands — challenges that threatened to divert their focus from running the business.
“Our day job was running a business that was growing really fast,” Safdie said. “There’s just an enormous amount of work that goes into fundraising. Time spent focusing on fundraising can complicate your ability to focus on the business.”
For Safdie and the Casetext team, bringing in a fundraising expert was the natural next step, but only if the partner had proven expertise in the legal tech landscape. As she evaluated potential collaborators, Marks Baughan stood out — offering the combination of industry knowledge, strategic connections, and hands-on support Casetext knew it needed to maximize its Series C.
“It was not a super favorable market at that time,” Safdie said. “But Marks Baughan had strong experience in our space, plus a great team and a compelling proposition. Through our conversations, I developed a lot of confidence in their ability to navigate tough conditions.”
With Marks Baughan’s guidance, the Casetext team’s early confidence turned into a business-defining win. Casetext secured $25 million in growth capital through a highly successful Series C round led by BuildGroup — a connection sourced and nurtured by the Marks Baughan team.
“Marks Baughan was fabulous to work with, super responsive,” Safdie said. “Strategic guidance wasn’t the only important thing to us. We needed operational firepower, and they gave that to us. We had a small, dedicated team and we could basically ask them for anything: analysis, materials, diligence. They made it smoother, and they took so much of the process off our shoulders that we would’ve had to manage, on top of running the business,” she added.
Navigating a New Offer — and New Challenges — With a Seasoned Expert
2023 brought another landmark growth opportunity for Casetext. This time, the process began with an unexpected proposal from a big name: Thomson Reuters had signaled its intent to make an offer.
With significant inbound fundraising interest from multiple parties, Casetext hadn’t been seeking an acquisition. While leadership was open to exploring such a substantial opportunity, Safdie and her team understood that navigating any potential sale would require highly specialized, strategic expertise. Drawing on their positive Series C experience, the Casetext cofounders reached out to Marks Baughan immediately — initiating the conversation with a Friday-night text as soon as the news arrived.
“We said, want to have fun this weekend?” Safdie recalled.
The acquisition, which enabled Thomson Reuters to integrate Casetext’s AI capabilities across its platforms, brought an overwhelming set of demands. The team needed to satisfy more than 1,100 distinct diligence questions, extensive documentation requirements, and ongoing data requests for investor analysis. Marks Baughan provided operational support to manage the process — helping Safdie and her one-person staff track requests, keep responses on pace, and stay focused on high-priority decisions.
“Once again, Marks Baughan helped guide us through the entire process, start to finish,” Safdie said.
The partnership culminated in a landmark moment in company history. Marks Baughan helped the team land a $650 million acquisition, which brought Casetext’s AI capabilities into the portfolio of Thomson Reuters, a global leader in professional technology solutions. The deal marked one of the most high-profile signals of how the legal industry is being reshaped by AI.
“We were a startup. We didn’t have large teams to support that work while running the business,” Safdie said. “Having Marks Baughan there, and the analysts to help us through the mechanics, was extremely important to getting this deal done.”
Two Turning Points — One Trusted Partner
For Casetext, Marks Baughan was more than an advisor. The firm acted as an extension of the team by providing tenured, strategic insight and deep knowledge of the legal tech landscape on demand. Today, Casetext’s AI innovation continues at Thomson Reuters, where CoCounsel is helping power the company’s vision as a global leader in professional-grade technology.
Casetext’s founders and executives have also taken on leadership roles within Thomson Reuters — ensuring the same vision, expertise, and innovative spirit continue to shape the future of legal technology from inside one of the world’s most influential companies.
“Marks Baughan knows legal tech very well, and they’ve known it for a long time,” Safdie said. “If you’re planning a strategic move, they’re the right partner to have on your side.”
Marks Baughan is a global investment banking firm specializing in legal and compliance. We have completed +125 transactions with an aggregate value of +$10 billion. Get in touch with us here.