Harvey has just raised $550m at a $15.5 billion valuation. Legora is understood to be hoping to raise another major round at a $10 billion valuation – but that is unconfirmed.
So, where do they both stand on the valuation ladder race and how did we get here? AL asked ChatGPT to make a table, then asked it two more times because it messed it up. But, hopefully this ‘valuation ladder’ race combo image is correct.
As you can see below, Harvey has had a head start and Legora has been racing behind. The valuation jumps have also been huge, although for Harvey they have reduced recently – but only because the level they are at now is so gargantuan.
The truth is that both companies have incredible growth stories and that in turn reflects the demand for legal AI tools.
Now, as discussed with Zach Abramowitz the other week, all of this eventually has to convert not just into uptake, but market change – at least that’s AL’s view. That said, no matter what one wants to see, these numbers are extraordinary.
–
Meanwhile, both Harvey and Legora are acquiring smaller startups or doing acquihires. Harvey’s latest is Guardrails AI, and Legora’s was Wexler.
With all the new cash we can expect more M&A, because ….why not? With that money they can buy small, but useful companies with point solutions, and also bring in new tech talent, plus perhaps even bring in a few new clients along the way, which are affiliated with those targets.
There are also a lot of companies out there dreaming of getting bought. It’s a buyer’s market now for sure. And these guys have the cash!
–
Overall, they are not going to stop. This pattern of growth may accelerate, or slow a little, but really in the long-term that will not matter so much. What is clear is that both Harvey and Legora are on the road to becoming giants.
Now….do they have the revenues to match today..? Well. Harvey now works with 80% of the AmLaw 100 and has dozens of major inhouse teams. Legora has plenty of clients too – and seems to be expanding outside of legal, or at least that’s what a piece with OpenAI said.
But, in a $1 trillion global legal market, there is room to grow. And they have the cash to drive that. This is not going to stop.
Congrats to both teams on their stellar work.
—
Legal Innovators New York – Nov 17 and 18
See you at Legal Innovators New York – Nov 17 and 18 – join us at the intersection of legal AI and the business of law in New York for the most important legal innovation event of the year! Day One: law firms, Day Two: inhouse. Top speakers from across the legal AI world, leading law firms, and major companies. All for one purpose: to describe and explore the frontier of legal technology. See you there!
UK and New York event links are here:
Discover more from Artificial Lawyer
Subscribe to get the latest posts sent to your email.