A startup building the Harvey for patent law has raised $40 million

In a rapidly evolving legal technology landscape, Patlytics has emerged as a key player, securing $40 million in a recent funding round led by SignalFire, alongside contributions from N47, Liquid2 Ventures, and notable industry figures including Jeff Hammes and David Fox. Founded by Paul Lee and Arthur Jen, the startup aims to transform the patent lifecycle management process by offering specialized software that addresses the intricate needs of patent law. Patlytics stands out in a market that is becoming increasingly competitive with companies like AsHarvey and Legora. Unlike these broader platforms, Patlytics focuses on the complexities of patent law, automating tasks from invention disclosures to portfolio management and IP litigation. Lee has recognized the vast, often hidden potential within this sector, noting that most disputes settle out of court, creating a largely undiscovered market. In a recent assessment, TRAC identified Patlytics as a strong contender for tech's next unicorn, leveraging a proprietary AI model that predicts startups with high growth potential. The company has already made significant strides, serving over 40% of the AmLaw 100 law firms and experiencing a tenfold revenue increase in 2025. Notable clients include litigation giants like Quinn Emanuel and corporate powerhouses such as Meta and Ford, who utilize Patlytics to optimize their patent portfolios. The startup's comprehensive software not only facilitates application drafting but also helps firms navigate responses to government inquiries and identifies potential patent infringements. As the patent application landscape grows—evidenced by over 393,000 applications filed in the U.S. last year—Lee believes that the current fragmented market will eventually consolidate, similar to how video communications evolved before the rise of platforms like Zoom. With a clear focus on the unique demands of patent law, Patlytics is poised to redefine how legal professionals manage intellectual property, potentially becoming the go-to solution for patent attorneys in the near future.