Legal AI startup Legora hits $5.6B valuation and its battle with Harvey just got hotter

Legora, a Swedish-born legal AI startup, closed a $50 million Series D extension on top of its $550 million Series D from last month, pushing its post-money valuation to $5.6 billion. The round was led by Nvidia's corporate VC arm NVentures – reportedly the chipmaker's first legal AI investment – alongside Atlassian and other investors. Legora crossed the $100 million annual recurring revenue (ARR) milestone in the same period, with its platform now used by over 1,000 law firms and in-house legal teams across 50 markets, including Blue-chip clients like Bird & Bird, Cleary Gottlieb, and Linklaters.

The funding intensifies Legora's rivalry with U.S.-based Harvey, which reached an $11 billion valuation last month after Sequoia led a new round. Both startups are vying for global market share: Legora is expanding in the U.S. while Harvey pushes into Europe. The competition has spilled into marketing – Harvey signed a partnership with 'Suits' actor Gabriel Macht, while Legora launched a campaign starring Jude Law. However, both face potential competition from foundation model makers like Anthropic, which recently launched a legal plugin for Claude. Legora CEO Max Junestrand dismissed the threat, stating that real value lies in application, not just models.