Legora has raised $550m in its latest funding round, which also saw the company valued at $8.8bn – a 60% increase on its last valuation.
The Swedish legal tech firm is in a race for market share with rival Harvey, which saw its own injection of new capital in September, in a round that valued the company at $15.5bn.
Legora’s Series E round, announced today (21 October), will be help grow the company’s presence in the US legal market, and further its investment in its latest agentic offering, Legora aOS.
In March, Legora raised $550m at a $5.5bn valuation, though the company extended its raise with a further $50m a few weeks later.
‘The opportunity in legal is enormous and we are still early,’ said Legora CEO and co-founded Max Junestrant. ‘AI is changing the role of the lawyer and reshaping how law firms and in-house legal teams are organised and get their work done.’
Earlier this month, just 24 hours apart, both Harvey and Legora launched products targeted specifically at in-house legal teams, in a sign that both companies see significant growth opportunities outside of law firms.
Both Harvey and Legora’s products are called ‘Intake’ – a name they share with a product launched in August by UK legal AI startup Wordsmith, which also focuses on in-house teams.
Legora’s latest round was led by Boston-based investor Atreides Management, and included at least four new investors, alongside every major existing shareholder, who also deployed more capital. The round was built around investors with a long time horizon, the firm said in a statement.
In the last couple of years, Legora’s annual recurring revenue (ARR) has climbed from $1m to over $200m, with the last $100m added in just six months.
‘Growth only counts if the business underneath it holds up,’ said Legora CFO David Eckstein (pictured). ‘We have passed $200m in ARR and we want every dollar to be a durable one. That means health gross margins, high retention, and a cost structure that gets stronger as we scale.’
Legora has begun to diverge from Harvey in its strategy, announcing over the summer that it will shift towards a consumption-based pricing model alongside the release of its Legora Agent.
Harvey, despite the increasing consumption of tokens from rapidly improving models, has said the company continues to ‘offer both seat-based pricing and pricing tied to customer usage.’
This strategy is backed by the Harvey’s belief that its post-training of Chinese open-weight model Kimi K3 can deliver what the company called in an August update ‘both performance and cost-efficiency.’
Last week, Hogan Lovells Cadwalader announced new partnerships with both Harvey and Legora, while Microsoft announced Copilot for Legal – making it the fourth frontier lab to release specific legal products this year after Anthropic, Alphabet and OpenAI, which launched Astra for Law last month.
