Legal A.I. Start-Up Legora Raises $550 Million at an $8.8 Billion Valuation

Seven months, one more giant round, and a much bigger price tag. Swedish legal AI startup Legora has closed a $550 million Series E, pushing its valuation to $8.8 billion from $5.6 billion in March.

The money comes from Atreides Management, Gavin Baker’s firm, with new backers including Baron Capital, Fidelity Management & Research, Glade Brook Capital Partners and J.P. Morgan. Existing investors such as Accel, Benchmark, Bessemer Venture Partners, General Catalyst, ICONIQ, Insight Venture Partners, Redpoint Ventures, Salesforce Ventures, Capital Group and Sands Capital also came back.

Legora says the fresh capital will mostly fuel North American expansion, where it already has offices in New York, Denver, Chicago, Houston, San Francisco, Toronto and Mexico City. It will also support growth in Europe and Asia-Pacific, plus new tools for its Legora aOS platform, including features for incoming requests, early regulatory alerts and legal research.

The numbers behind the raise are the real eye-catcher. Legora says annual recurring revenue went from $1 million to $100 million in less than 18 months, then doubled again in under six months. It now says ARR is above $200 million. Founded in Stockholm in 2023 and launched in October 2024, the company says it now has more than 1,000 employees in 18 locations and more than 140,000 legal professionals using its software across more than 2,400 law firms and legal departments.

The U.S. is now its biggest market by revenue, and more than half of the 50 largest U.S. law firms are customers. Corporate legal teams are becoming more important too, making up more than 40 percent of new customers in the third quarter. One of those customers is Strabag, where a legal and contract management unit of about 400 employees is doubling its licenses from 200 to 400 this year. The company says the software saves up to 80 percent of time on data processing agreements.

And the race with Harvey is getting sharper. Harvey raised $550 million in September at a $15.5 billion valuation, so Legora is still behind on price, even if the gap is closing in product speed and market attention. Last week, both companies even launched nearly identical tools called Intake within a day of each other. The overlap got laughs in the industry, but it also shows how badly both want the same prize: corporate legal departments, not just law firms.