Crosby

Crosby is a New York-based, registered law firm that combines AI agents with licensed attorney oversight to review and negotiate commercial contracts. Clients submit a document or legal question via Slack, email, or a CLM trigger; custom legal agents built to each client's playbook process the document, and Crosby lawyers weigh in on judgment-heavy issues and verify the AI's output. Deliverables include redlined versions, commentary tables, and drafted email responses for negotiation, typically returned within hours. Document types include NDAs, MSAs, DPAs, vendor contracts, and customer agreements.

The company frames its target market as the "dead zone" of legal work between $1,000-per-hour large law firms and manual review by overstretched in-house operators — high-volume, comparatively low-complexity contracting work that is important but does not justify heavyweight legal bills. Sources describe this demand as roughly $18B and growing. Crosby positions itself as an execution layer rather than a document-organization tool, and states it is a registered law firm carrying malpractice insurance so it stands behind its work.

In 2026 Crosby launched Crosby Intelligence, a dedicated internal research organization focused on legal AI. Its stated activities are publishing benchmarks (including Crosby RedlineBench, an evaluation of how frontier models perform senior commercial lawyers' workflow in live contract negotiations), running a monthly speaker series with researchers and practitioners, and funding open frontier research through grants and a fellowship. The announcement, authored by co-founder and CTO John Sarihan, argues that legal work lacks the verifiable-reward structure that drove AI gains in code and math, and that defining quality across a spectrum of acceptable answers is the core open problem.

Founding story

Crosby was founded in 2024 by Ryan Daniels (CEO) and John Sarihan (CTO). Daniels, the son of two law professors, studied at Penn, attended Stanford Law School, and began his career as an associate at Cooley before serving as a founding team member and general counsel at early-stage startups including HiredScore (later acquired by Workday) and A.Team; he was also part of the founding of The L Suite between 2021 and 2024 and spent about five months as an entrepreneur in residence at Bain Capital Ventures before starting Crosby. Sarihan also graduated from Penn, in the M&T program, was a Google software engineering intern, and spent four years at Ramp rising from engineer to manager and tech lead, where he managed money licenses and observed how poorly served fast-growing companies were by existing legal and regulatory support. During formative research, Daniels traveled to India to observe legal process outsourcing workers. An early experiment in which Sarihan built an overnight data pipeline to mirror Daniels' manual contract review showed the AI was faster on many aspects but missed nuanced edits, convincing the pair that AI with a human in the loop was the right model; the pairing cut initial review times from 24 hours to 12.

Business model

Crosby operates as a law firm rather than a software vendor, selling legal services delivered by a mix of AI agents and employed attorneys. Rather than billing by the hour, it charges predictable, volume-based fixed rates per document, which it argues aligns incentives with clients and converts legal spend from a variable expense into a fixed operating function. One source cites pricing of $250–$1,000 per contract, and the firm offers liability guarantees backed by malpractice insurance.

Fixed per-document fees based on the number of contracts reviewed, rather than hourly billing.

Traction

As of the Series B announcement, Crosby reported over $1B in negotiated contract value, up from roughly $30M when it came out of stealth about 283 days earlier. Reported figures include 13,000 contracts reviewed, 400% revenue growth since October 2025, a median turnaround of 58 minutes, clients reporting 50% faster processes, and roughly 2,000 contracts handled for Cursor. Earlier coverage noted thousands of customer contracts reviewed for companies including Cursor, Clay and UnifyGTM.

Latest developments

In March/April 2026 Crosby announced a $60M Series B co-led by Lux Capital and Index Ventures, with Sequoia, Bain Capital Ventures, 01 Advisors and Elad Gil participating, reported at a $400M valuation, to fund AI R&D, customer support and NYC hiring. Announced roadmap items include counterparty response simulation, voice negotiation agents, and a client oversight platform. In June 2026 the company launched Crosby Intelligence, a research organization publishing the RedlineBench benchmark, hosting a monthly speaker series with guests including Peter Henderson (Princeton Polaris Lab), Rahul Sengottuvelu (Ramp Labs), Neel Guha (Columbia University), and Parag Agrawal (Parallel Web Systems), and funding external research via a fellowship and grants. The careers page lists roughly seventeen open roles across engineering, legal, marketing, operations and sales.