Battle to become legal AI’s number one platform attracts eye-watering investment
Legal AI platform Legora has secured another bumper funding round, pushing its valuation to a whopping $8.8 billion (£6.6 billion).
The Swedish-founded company has raised a further $550 million (£410 million) in a Series E round, just seven months after securing the same amount at a $5.6 billion (£4.2 billion) valuation. That represents a jump of more than 50% in less than a year.
The latest round was led by Atreides Management, with new investors including Baron Capital, Fidelity and JPMorgan. Existing backers including Accel, Benchmark and General Catalyst also participated, taking Legora’s total funding to more than $1.4 billion (£1 billion) since it was founded in 2023.
The fresh cash comes amid a period of rapid growth for the legal tech company, which says its annual recurring revenue has now surpassed $200 million (£150 million). It took less than 18 months to climb from $1 million (£750,000) to $100 million (£75 million), with the next $100 million (£75 million) arriving in under six months.
Max Junestrand, Legora’s CEO and co-founder, said:
“The opportunity in legal is enormous and we are still early. AI is changing the role of the lawyer, with more time for judgement and advice, and it is reshaping how law firms and in-house legal teams are organised and how their work gets done.”
The funding comes as competition heats up between Legora and rival legal AI platform Harvey, which secured its own $550 million (£410 million) funding round in September, taking its valuation to $15.5 billion (£11.6 billion).
The rivalry recently produced a rather awkward coincidence when the two companies unveiled new products bearing exactly the same name just hours apart. Both offerings, called ‘Intake’, are designed to help in-house legal teams manage requests from across their businesses, with AI handling routine tasks and freeing up lawyers for more complex work.
