Legal AI platform Legora has raised $550m in fresh funding to finance its ongoing US expansion, valuing the company at $5.5bn.
The Series D round was led by Accel alongside existing investors Benchmark, Bessemer Venture Partners, General Catalyst, ICONIQ, Redpoint Ventures and Y Combinator and new investors including Alkeon Capital, Bain Capital, Firstmark Capital, Menlo Ventures, Salesforce Ventures, Sands Capital and Starwood Capital.
The Legora fundraising round comes amid a boom in legaltech and legal AI investment more broadly. In the UK, the number of new legaltech start-ups jumped 17% last year to 315.
Sweden-based Legora’s latest capital injection follows the company’s announcement that it is opening two new offices in the US in Houston and Chicago, adding to its existing presence in New York and Denver. Speaking to Global Legal Post earlier this month, Legora CEO and co-founder Max Junestrand said the US is quickly becoming its largest market by revenue.
Commenting on the funding round, Junestrand said: “Over the past year, the pace of adoption in the US has exceeded our expectations, as leading firms and in-house teams move decisively from experimentation to embedding AI across their organisations.
“This funding enables us to accelerate our US growth – investing in talent and infrastructure, strengthening our presence in key markets and ensuring we can support customers on the ground as they integrate AI into their core workflows.”
The company said it plans to open additional local US hubs and grow to more than 300 employees across its US offices by the end of this year. Since launching in the US a year ago, Legora’s global footprint has rapidly expanded from 40 to 400 team members in Stockholm, London, New York, Denver, Sydney and Bengaluru, India. It now has 800 customers using its technology in more than 50 markets.
Arun Mathew, a partner at Accel, said: “Max and team are relentlessly focused on building the AI operating system for the legal industry. As in other service industries, work is quickly shifting to end-to-end workflows run by agents, and more of that work is happening on Legora. We’re excited to partner with Legora as they enter this next stage of growth.”
Last week, legaltech business Intapp said it was partnering with AI-specialists Anthropic and Harvey to help enhance its products.
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