Banyan AI Fund Invests in Lexroom.ai: Transforming Legal Research with Vertical Generative AI

We’re excited to announce that Banyan AI Fund has participated in Lexroom.ai’s seed round, supporting the company’s mission to revolutionize legal research in Italy using AI.

Why We Invested in Lexroom.ai

Lexroom.ai is an AI-powered legal research platform designed specifically for Italian law. Unlike broad AI solutions, Lexroom.ai delivers highly accurate, domain-specific insights tailored to Italy’s complex legal landscape. By leveraging a Large Language Model (LLM) trained on locally relevant sources, Lexroom accelerates legal workflows, saving lawyers over five hours per week on research and drafting.

In just one year since launch, Lexroom.ai has:

•  1,000 clients (law firms and businesses)
•  Nearly €1M in ARR in under a year
•  A lean team of just 15 employees

Market Opportunity

Italy has one of the highest lawyer-to-population ratios in the world, with 403 lawyers per 100,000 residents. Lawyers in Italy spend an average of 80 hours per month on legal research, an inefficient process that Lexroom.ai streamlines with AI.

With 240,000 lawyers in Italy alone, Lexroom.ai has a clear path to:

• Capture 4 percent of the market, translating to more than $10 million ARR in Italy, 40% market share is a $400M ARR business 
• Expand into Spain and other European markets

Competitive Advantage

While global AI legal tools like Harvey AI (valued at $1.5 billion) dominate the enterprise segment, Lexroom.ai wins by focusing deeply on the Italian legal ecosystem:

• Localized expertise: Specializes in Italian case law, which global competitors struggle to translate
• Bottom-up strategy: Targets solo practitioners and small firms first, creating a strong foothold for future enterprise expansion
• High retention: over 80 percent of users use the product weekly

The Founding Team

Lexroom.ai is led by a strong team with deep expertise in AI, legal technology, and startup growth:

• Andrea Lonza (CEO): Scaled a previous startup to €7M ARR, expert in AI and computer vision
• Paolo Fois (COO): Legal specialist with an LLM from King’s College, ensuring the product aligns with real-world legal needs
• Martina Domenicali (CTO): AI engineer with more than eight years of experience in building AI-powered products

The company is backed by strategic investors, including former executives from Airbnb, Apple, and EY, as well as prominent law firms.

Future Outlook

Lexroom.ai is positioned to achieve escape velocity, with a clear path to scaling beyond $100M ARR within the next five years.

We are excited to support Lexroom.ai as it reshapes the future of AI-powered legal research.

For those interested in learning more, we encourage you to follow their journey.