Legal software startup Harvey raises $550m at $15.5b valuation

Legal software startup Harvey announced today that it has closed a $550 million funding round at a valuation of $15.5 billion. The financing was co-led by new investors Diffusion and Lightspeed Venture Partners.

The San Francisco-based company said the proceeds would help accelerate its work with law firms, in-house legal teams, and professional-services firms as they look to build and own their intelligence at scale.

Harvey develops legal AI tools used by law firms and corporate legal departments to automate workflows including contract analysis, due diligence, compliance, and litigation.

Existing investors Sequoia, Kleiner Perkins, a16z, Coatue, Conviction, Elad Gil, Evantic, GIC, Goldman Sachs Alternatives, Verified Capital, and WNDR participated in the round. New investors Diffusion, Lightspeed, Sapphire Ventures, and Whale Rock also backed the funding.

Harvey also said today it has acquired Guardrails AI, a San Francisco-based startup providing an AI security platform for agents. The acquisition marks Harvey's fourth deal this year, and the company did not disclose financial terms.

In March, the company raised $200 million at an $11 billion valuation. Harvey said it is now used by 80% of the 100 highest-grossing law firms in the United States.

Legal technology has drawn significant investment interest. Legora raised $550 million at a $5.55 billion valuation in March, and Clio raised $500 million at a $5 billion valuation in November.

A newly launched venture capital fund, backed by a group of corporate general counsels and the law firm Wilson Sonsini, began operations on Tuesday to invest in early-stage legal, regulatory, and compliance technology startups.

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