AI startup Legora is in talks to raise $85 million at a $675 million valuation, according to five sources familiar with the deal. The Stockholm-based company, which builds AI tools for the legal industry, is reportedly backed by General Catalyst and Iconiq, with existing investors Redpoint Ventures and Benchmark also participating.
If finalized, this funding will bring Legora’s total raised to about $120 million, as it looks to expand globally and keep pace with bigger rivals like Harvey AI.
From Startup Chatbot to Legal AI Powerhouse
Founded in 2023 by Max Junestrand (CEO), Sigge Labor (CTO), and August Erseus (CPO), Legora began as a simple document chatbot. Inspired by OpenAI’s ChatGPT boom, the trio built an AI assistant that could analyze uploaded documents—laying the groundwork for their legal AI platform.
Today, Legora automates contract drafting, document review, and legal research for law firms. Its software, running on Microsoft Azure and leveraging AI models from OpenAI and Meta, handles tedious legal tasks with speed and precision.
Over the past year, the startup has inked deals with major law firms including Cleary Gottlieb, Goodwin, and the UK’s Addleshaw Goddard. With 250+ customers across 20+ countries, Legora is quickly gaining ground.
Playing Catch-Up in a Competitive Market
Despite its rapid growth, Legora still trails Harvey AI, an OpenAI-backed competitor valued at $3 billion after raising over $500 million. Other players in the space include Robin AI, EvenUp, and Thomson Reuters-acquired Castext.
Legal AI is heating up as law firms look for productivity gains. Unlike many industries, legal work is billed in six-minute increments, with partners earning directly from profits. With top firms charging $1,000/hour, AI tools that can cut time and costs are in high demand.
Scaling Beyond Europe
In early 2024, Legora rebranded from Leya to Legora and opened a New York City office, marking its first expansion outside Europe. With a current headcount of 60 employees, the company plans to add 100 more staff and establish two new global offices by the end of 2025.
Intel Capital is also participating in this round, marking its first quantum legal AI investment.
“The debate has shifted from ‘if’ to ‘when’,” said Kike Miralles, Investment Director at Intel Capital. “The category is here to stay.”
The Bigger Play
While flashy generative AI startups dominate headlines, Legora’s steady focus on a real business need—automating legal workflows—gives it staying power. The upcoming funding will be used to enhance its tech stack and scale operations as law firms worldwide seek efficient, cost-saving solutions.
The new round follows a $25 million Series A in 2024, led by Redpoint Ventures with participation from Y Combinator, Benchmark, Wayfinder Ventures, and Alt Capital.
Source: Forbes
