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You are at:Home»Startups»Legal AI startup Legora hits $5.6 billion valuation, and its battle with Harvey just got hotter
Startups

Legal AI startup Legora hits $5.6 billion valuation, and its battle with Harvey just got hotter

techtost.comBy techtost.com1 May 202603 Mins Read
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Legal Ai Startup Legora Hits $5.6 Billion Valuation, And Its
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Nvidia has laid a new brick in its AI empire. NVentures, its corporate VC fund, has backed Legora, according to information its first legal investment in artificial intelligence.

Harnessing artificial intelligence to help lawyers streamline their work, the Swedish-born legal tech startup is taking on American player Harvey.

Along with Atlassian and other new financial investors, NVentures joined Legora’s table as part of a $50 million Series D expansion which comes a month after the startup’s $550 million Series D.

During this time, this Y Combinator alum exceeded $100 million in annual recurring revenue (ARR) — a milestone that contributed to its new $5.6 billion post-money valuation.

That puts Legora’s valuation a bit closer to Harvey’s, which reached $11 billion last month when Sequoia tripled its investment. Andreessen Horowitz, Coatue, Conviction Partners, Elad Gil, Matt Miller’s Evantic and Kleiner Perkins also participated in this round.

Legora, too, is backed by high-profile VCs, but puts even more emphasis on the big names it has secured as clients, including Bird & Bird, Cleary Gottlieb and Linklaters. Launched just 18 months ago, the platform is now used by more than 1,000 law firms and in-house legal teams in 50 markets, according to the company.

Harvey has game in that area as well. The claims 100,000 lawyers at 1,300 client organizations, ranging from global law firms like Hengeler Mueller and Latham & Watkins to corporate legal teams at companies like T-Mobile and Bridgewater.

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With the ultimate goal of world leadership, the Harvey v. Legora is the one they intend to play on each other’s court. Legora has opened several offices around the world with the US being a key focus for its expansion. On the contrary, Harvey pushes towards Europe.

With a lot of capital being spent on both sides, this battle has turned into public opinion. Not long after Winston Weinberg’s company Harvey signed a partnership with the brand with actor Gabriel Machtwho plays a powerful lawyer in the TV series “Suits”, Legora launched an advertising campaign with movie star Jude Law under the slogan “Law just got more attractive”.

Both companies may be right to bet big on marketing. Beyond the competition, they are built on large language models built by AI giants that could well become their competitors. When Anthropic released a legal plugin for Claude some time ago, several publicly traded legal software companies they saw their stocks fall.

Legora CEO Max Junestrand says he’s not worried.

“Foundation models are improving rapidly, but the real value lies in how they are implemented,” he wrote in a statement. It also shows how the startup is instilling FOMO in its target users, stating that “legal teams that effectively integrate AI today will shape the way the industry evolves.”

NVentures’ investment is also a signal that Legora may have enough of a moat to protect it from model makers and its biggest rival.

However, Nvidia is also known for hedging its bets — after all, it invested in both Anthropic and OpenAI before deciding it had probably had enough.

When you purchase through links in our articles, we may earn a small commission. This does not affect our editorial independence.

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