Legal technology startup Athena has raised $2.5 million in pre-seed funding to expand its AI-powered legal services platform, which focuses on automating commercial real estate transactions.

The round was led by Andreessen Horowitz's accelerator programme, a16z Speedrun. The company did not disclose any other participating investors.

Founded by Cem Ucan and Kieran John Keenan, alongside founding engineer José Braz, Athena is taking a different approach to legal AI adoption. Rather than selling software tools directly to traditional law firms, the startup provides legal services through an affiliated law firm, using AI agents to automate routine work while experienced attorneys handle legal judgment and negotiation.

A different business model for legal AI

Athena is addressing a commercial challenge facing the legal technology industry: the conflict between AI-driven efficiency and the traditional hourly billing model used by many law firms.

When AI tools reduce work that previously took several hours to just a few minutes, law firms billing by the hour may see their revenue decline. This can create a financial disincentive to adopt automation, even when it improves productivity.

Athena's model is designed to address this problem. Instead of charging law firms for software, the company delivers legal services through its affiliated law firm and charges clients a fixed fee per transaction.

According to Athena, its fees are typically 30% to 50% lower than standard rates. The model aligns its revenue with the delivery of faster legal services rather than the number of hours spent on a transaction.

Co-founder Cem Ucan said the company combines AI automation with a law firm designed around the technology from the beginning. Experienced attorneys remain responsible for the judgment and negotiation required to move transactions forward.

Automating commercial real estate transactions

Athena initially focuses on commercial real estate acquisitions, sales and financing.

Its AI agents are designed to handle several parts of the transaction process, including:

• Drafting and reviewing purchase agreements.

• Preparing and reviewing loan documents.

• Conducting due diligence.

• Identifying inconsistencies in transaction documents.

• Supporting administrative work required to close deals.

• Preparing contract redlines and client communications.

The platform begins with an incoming agreement, which its AI agents analyse and compare against standard deal sheets. The system identifies inconsistencies, prepares proposed changes and drafts communications for review.

Athena also uses information from historical transactions to help its agents adapt to individual clients' negotiating styles and preferences.

However, human attorneys remain involved throughout the process. They review AI-generated work, make strategic decisions and approve deliverables before anything is sent to clients.

Chief Technology Officer Kieran John Keenan said the company's focus is not simply generating legal drafts quickly, but reducing the time attorneys need to review and approve AI-generated work.

22 legal firms signed up within two months

Athena says it has signed up 22 legal firms as clients, just two months after launching its service.

The company also reports that its AI agents have reduced document review times by an average of 70%, learning from attorneys' edits and client preferences.

One customer, Mox Living, a Texas-based multifamily real estate and property management firm, reported a positive experience with the platform.

Its CEO, L. Miguel Arce, said Athena delivered a complete purchase agreement in less than 48 hours, describing it as the fastest turnaround he had experienced.

The company says its system learns from individual transactions, including attorney revisions and client preferences, with the goal of improving both speed and the quality of legal work.

Funding to support expansion

The $2.5 million pre-seed round was led by a16z Speedrun, Andreessen Horowitz's accelerator programme.

The funding comes as Athena looks to expand its legal services business. The company plans to enter new markets and property classes, while also exploring opportunities in additional legal domains.

The startup is targeting commercial real estate activity that could increase as properties financed through short-term loans in 2021 and 2022 reach refinancing deadlines, potentially creating demand for transaction and legal services.

Athena's approach reflects a broader shift in legal AI: moving beyond software that assists lawyers towards service models that combine automation with professional legal oversight.

Its ability to scale will depend on maintaining legal quality and attorney oversight while delivering the cost and speed advantages promised by AI.