Legal AI startup Legora reaches $5.6B valuation after Nvidia investment

In short: Legal AI company Legora says it is now valued at $5.6 billion after a new funding round that includes Nvidia’s investment arm.

What happened

Legora, a legal software startup founded in Sweden, announced a $50 million extension to its Series D funding round. The new investors include NVentures, which is Nvidia’s venture fund, plus Atlassian and other backers.

This extension follows a larger $550 million Series D round that Legora raised about a month earlier. Legora also said it has now passed $100 million in annual recurring revenue, which is a common business metric that shows how much subscription revenue a company expects to bring in each year.

Legora sells AI tools that help lawyers work faster, for example by summarizing documents and drafting text. The company says its product, launched about 18 months ago, is used by more than 1,000 law firms and in-house legal teams across 50 markets.

Legora is competing with U.S. rival Harvey, which confirmed an $11 billion valuation last month. Both companies are expanding into each other’s main regions, with Legora focusing on the U.S. and Harvey pushing into Europe.

They are also competing for attention through marketing. Harvey signed a brand partnership with actor Gabriel Macht, and Legora launched an ad campaign featuring Jude Law.

Why it matters

More legal teams are buying AI tools, which could change how quickly some legal work gets done and how much it costs. At the same time, Legora and Harvey rely on large language models (the text prediction engines behind many chatbots), and those model makers could also build competing legal products.

Source: TechCrunch AI