Robin AI Reduces Workforce by One-Third Amid Funding Challenges

Robin AI, a legaltech startup based in London, is reducing its workforce by one-third as it faces difficulties in finalizing a $50 million funding round. Sources familiar with the situation confirmed to Sifted that the company is in the process of making dozens of staff redundant, marking a significant shift in its operational strategy.

The company, which specializes in applying artificial intelligence tools to the legal sector, has previously raised approximately $70 million from a range of investors, including Nik Storonsky‘s family office Quantumlight, Plural, SoftBank, and Episode 1. As of February 2025, Robin’s headcount was around 200, but that number has since decreased to approximately 150, following a series of layoffs and employee departures.

Details on Layoffs and Funding Struggles

In the past month, Robin AI has conducted layoffs in its New York office while currently undergoing a consultation process in London. UK law mandates a formal consultation when making 20 or more layoffs. The latest round of job cuts is expected to affect around another 50 roles, further diminishing the company’s workforce.

Despite its previous success in attracting investment, Robin AI has not yet secured the additional $50 million it has been targeting. The startup declined to provide comments on the situation, leaving uncertainty regarding its future funding prospects.

Founded in 2019, Robin AI has garnered attention from several high-profile investors, including Tom Blomfield, the founder of Monzo, as well as Singapore’s sovereign wealth fund, Temasek, and PayPal Ventures.

A Growing Legaltech Landscape

The legaltech sector has seen a surge of investment in 2025, with European startups raising a total of €610 million so far this year, surpassing the €418 million raised throughout 2024. Notable funding rounds in the industry include Sweden’s Legora, which secured $80 million in May and another $100 million at a valuation of $1.7 billion shortly thereafter. Other companies such as London-based Luminance and Edinburgh’s Wordsmith AI have also attracted significant investments, with Luminance raising $75 million in February and Wordsmith AI obtaining $25 million in June.

As Robin AI navigates this challenging period, the broader legaltech landscape continues to evolve, emphasizing the demand for innovative solutions within the legal sector. The outcome of Robin AI’s funding efforts and restructuring will play a crucial role in determining its position in this competitive market.