Steno Agency Inc. raises $49M in Series C

Steno Agency Inc., a provider of tech-enhanced court reporting and litigation support services, has secured $49 million in Series C funding. The funding round was led by Savano Capital Partners, with participation from existing investors, First Round Capital and The Legal Tech Fund, among others. This capital injection is intended to further develop Steno's advanced Artificial Intelligence (AI) capabilities within its court transcript technology.

Steno's latest funding round highlights its ambition to enhance its AI-enabled tool, Transcript Genius, which analyzes legal transcripts to provide customized insights and expedited summary generation. This tool allows for more rapid identification and interrogation of crucial information within case transcripts, providing a technological edge to legal professionals by enhancing their ability to engage with case data as if under a cross-examination scenario. The strategic use of generative AI aims to streamline legal workflows by providing lawyers with concise information retrieval, ultimately enabling a more efficient litigation process.

The company's strategic position as both a technology provider and a service entity allows it to deliver solutions that are integrated directly into legal workflows, a point of differentiation emphasized by CEO Greg Hong. He noted that the dual nature of Steno's operations allows it to develop AI capabilities that are difficult for pure software companies to match. This integrated model has been a cornerstone in building strong partnerships across the legal profession, from attorneys to court reporters.

Steno's activities occur against a backdrop of increasing digitization within the legal sector, where remote and AI-driven tools have become more ingrained following the COVID-19 pandemic. Despite a stabilization post-pandemic, a significant portion of legal professionals anticipate continued growth in remote legal activities, with 44% expecting increased usage through 2026 due to efficiency and flexibility benefits. Steno’s offerings such as Steno Connect for remote depositions cater to this ongoing trend, further embedding digital solutions in traditional legal practices.

Looking ahead, Steno plans to allocate its new funds towards the further development of its AI technology and aims to expand its market presence by providing unified platforms for litigation support. This strategic push positions Steno to potentially influence broader changes in legal practice efficiency, pending the successful integration and scaling of their AI capabilities as envisaged.