Legora raises another $550m, says US is now its biggest market

Legora has raised another $550 million, valuing the legal AI company at $8.8 billion.

The Series E comes just seven months after Legora raised the same amount at a $5.6 billion valuation, meaning its valuation has jumped by more than 50% since March.

The latest round was led by Atreides Management, with new investors including Baron Capital, Capital Group, Fidelity, Glade Brook Capital Partners and JPMorgan. Existing backers including Accel, Benchmark, General Catalyst and ICONIQ also participated.

Legora has now raised more than $1.4 billion since launching in 2023.

Growth push

The company said annual recurring revenue has passed $200 million, having reached $100 million less than 18 months after starting from $1 million.

The US is now Legora’s largest market by revenue, with more than half of the top 50 American law firms using the platform. In-house legal teams are also becoming a bigger part of the business, accounting for more than 40% of new customers in the third quarter.

Legora has been expanding aggressively this year as it battles Harvey for leadership of the legal AI market.

It has announced new offices in Madrid, Milan and Paris, alongside a London engineering base, while continuing to build out its US presence.

The new capital will be used to fund further expansion in North America, Europe and Asia-Pacific, as well as investment in Legora’s AI platform and new products.

$8.8bn valuation

Legora now has more than 1,000 employees across 18 offices and says its software is used by more than 140,000 legal professionals at over 2,400 law firms and in-house legal teams.

Chief executive Max Junestrand said the company intended to “lead the shift” towards AI-driven legal work in the US and globally.

The latest round underlines the speed at which capital continues to flow into the legal AI market, with Legora and Harvey both raising huge sums as they race to sign up major law firms and in-house teams as customers.

Harvey was valued at $15.5 billion after its most recent funding round in September.