Harvey might be the giant everyone’s talking about in legal AI, but it’s not the only one making their way in legal tech. While Harvey grabs headlines with big funding rounds, Aracor AI is quietly carving out its own space. Instead of trying to dominate the entire industry, Aracor is laser-focused on fixing a specific problem: helping in-house legal teams buried under mountains of paperwork. Miami-based legal tech startup Aracor AI has successfully raised $4.5 million in pre-seed funding to address the growing challenges legal teams face in high-growth industries like private equity, venture capital, and technology. The round was led by Coconut Grove-based Fuel Venture Capital, with the goal of accelerating the development of AI-powered tools designed to streamline contract review and due diligence.
Traditional legal workflows are often slow, expensive, and susceptible to human error. Aracor AI’s platform helps in-house legal teams manage thousands of pages of legal documents with greater speed and precision. By leveraging its proprietary language model, the company ensures data privacy while offering automated contract analysis, customizable contract review rules, and seamless integrations with Microsoft Word. This approach reduces the time and cost associated with legal processes while maintaining accuracy and security.
Maggie Vo, managing general partner and chief investment officer at Fuel Venture Capital, emphasized Aracor AI’s impact. “As an early adopter, I’ve seen firsthand how Aracor AI supports our fund by expediting contract review, streamlining due diligence, and providing greater insight into negotiations,” she stated. Vo also highlighted the importance of backing a female-led startup in the AI space. “Championing diversity in tech and innovation is critical, and I’m excited to be part of Aracor AI’s journey.”
Fixing a Broken System
In-house legal teams, especially in private equity, venture capital, and tech, are drowning in paperwork. There’s constant pressure to close deals fast while maintaining accuracy, and most AI tools on the market just weren’t built to handle the sheer complexity of legal contracts. Fisher, who has spent 15 years as an attorney including six years as in-house counsel at Constructor Group saw this gap firsthand.
“We deal with volumes and volumes of deal documents. AI tools existed, but none of them really worked for our world,” she explained. That’s where Aracor AI comes in. The platform automates contract analysis, due diligence, and document review, cutting down legal costs and eliminating the need for outside counsel in many cases. Fisher’s own legal team at Constructor has saved “at least a few hundred thousand dollars in legal fees” by bringing due diligence in-house.
Introducing 1-Click Summary
Aracor AI recently launched 1-Click Summary, an AI-powered legal assistant feature that generates concise document summaries in seconds. Unlike traditional AI tools that require specific prompts or user configurations, this system automatically processes key details, identifies crucial clauses, and delivers structured summaries instantly.
This feature is particularly valuable for legal teams, compliance officers, and business professionals who need quick insights from contracts, regulatory filings, and other legal documents. By eliminating the need for manual review, 1-Click Summary significantly enhances efficiency and allows professionals to focus on strategic decision-making rather than time-consuming document analysis.
A Female-Led AI Startup Making Its Mark
Fisher being a female founder in AI, is in an industry still largely dominated by men. “It feels great to have support from both sides, but it was especially exciting to secure funding from a female investor,” she said, referencing Fuel Venture Capital’s Maggie Vo. Aracor AI itself maintains a 50/50 gender split across its engineering, legal, marketing, HR, and finance teams something Fisher hopes will encourage more women to break into deep tech and AI.
“When I was growing up, I didn’t really have role models who fit the mold of what I wanted to be,” Fisher reflected. “Now, the idea that I could be inspiring other women to get into AI, raise capital, and build transformative companies is fantastic.”
CEO Katya Fisher on Aracor AI’s Growth and Vision
Katya Fisher, CEO of Aracor AI, described the funding as a pivotal moment. “Fuel Venture Capital started as a user of our product. Their investment validates our vision and product-market fit,” she said. With the new funding, the company plans to expand its team, enhance AI capabilities, and reach more businesses worldwide.
As a seasoned attorney with 15 years of experience, including six years as in-house counsel for Constructor Group, Fisher understands the inefficiencies that in-house legal teams face daily. “We deal with overwhelming volumes of deal documents, and there’s constant pressure to close deals efficiently without sacrificing accuracy. Existing AI tools didn’t fully address these needs, so we built Aracor AI to bridge that gap.”
For Fisher, the real win is the fact that VC firms and private equity teams are actually using Aracor AI in their own workflows. “I built this product because I needed it. I wasn’t an engineer—I was an attorney trying to solve a real problem. Now, having a fund invest in us because they love the product? That’s the best validation we could ask for.”Aracor AI’s impact is already evident. Fisher’s own legal team at Constructor Group has used the platform to bring due diligence in-house, eliminating the need for external counsel in many cases and saving the company hundreds of thousands of dollars in legal fees. “We’re half human, half AI now,” she joked, emphasizing the efficiency gains her team has experienced.