Relativity, Which Helps Law Firms Analyze Large Datasets, Acquires Text Iq, an Ai Startup That Helps Businesses Identify Sensitive Data, Reportedly for $100m+ (Relativity Iq Ai 100m Dallke Chicago Businessjournal)

Relativity Iq Ai 100m Dallke Chicago Businessjournal: The creators of TextIQ, a startup that uses artificial intelligence to identify sensitive data, have agreed to sell the company to big data analytics company Relativity Iq. The terms of the deal were not disclosed. The acquisition is part of Relativity’s long-term strategy of moving into the legal space and consolidating its position in government contracts, according to the Chicago Business Journal.

Relativity previously acquired electronic discovery app LawNet in 2015. The company’s main product is a tool called eDiscovery Manager, which is a software suite used by law firms and corporations to analyze large data sets and build legal cases. The acquisition of TextIQ is expected to enhance Relativity’s products.

The founders of TextIQ set out to build an AI-powered service that could help businesses identify data that needed to be redacted from a document in case it was disclosed in court. Since the product is still relatively new, it hasn’t been widely adopted so far.

The company’s data-mining approach has been compared to that of LegalVision, an AI startup acquired by Google in 2013. The technology uses machine learning to scan a document, compare it to previously scanned documents as well as legal dictionaries and court decisions, and identify areas where sensitive information is unwittingly leaking out.

The idea for TextIQ emerged from the founder’s experience at eDiscovery software provider LexisNexis and his desire to apply similar technology to other fields beyond the legal sector. At some point, he joined forces with a former law student, Matt Johnson, and the two co-founders started TextIQ.

Johnson previously worked as an Data Scientist at IBM while studying at the University of Chicago. The company had raised $3 million in funding from investors including the University of Chicago’s seed fund and GV (formerly Google Ventures).

TextIQ has raised $5 million in funding since it launched in 2015, according to Crunchbase data. The latest round of funding was led by the University of Chicago’s venture fund, and other investors included GV, Chicago Ventures and Hyde Park Venture Partners.

In a statement, Relativity said the acquisition will more than double the size of its workforce and strengthen its legal technology offerings. TextIQ’s HQ will move to Relativity’s Chicago offices.

Last year, Chicago Business Journal named Relativity as one of the fastest-growing private companies in Illinois and the company is currently ranked #17 on Deloitte’s Technology Fast 500™ list. It was also a Crain’s Chicago Fast 50 honoree.

The company has received substantial funding from some of the best-known investors in the technology industry, including Matt Cohler, Reid Hoffman, Jeremy Liew and Patrick McGregor of Greylock Partners. It was recently named one of The Seattle Times’ 100 Smartest Companies in Washington State.