Harvey said on Wednesday it raised $550 million in a new financing round that sets the legal AI company's valuation at $15.6 billion. The funding is directed toward the development of proprietary artificial intelligence models, according to the firm.
The round was co-led by Lightspeed Venture Partners and Diffusion. Diffusion was co-founded by Kris Fredrickson, a former Coatue Management investor who has been an established backer of Harvey. Sapphire Ventures and Whale Rock Capital Management also joined the new tranche alongside Harvey's prior investors.
To date, Harvey has secured in excess of $1.5 billion in total financing, a level the company states makes it the highest valued and best funded legal AI startup. Harvey sells AI-driven services to major law firms, including Latham & Watkins, and to corporate legal departments at companies such as Microsoft Corp. (NASDAQ:MSFT).
The company said it has surpassed $400 million in annual recurring revenue and that its client list encompasses 80% of Am Law 100 law firms as well as legal teams at five of the Fortune 10 companies.
Harvey's co-founders, Winston Weinberg and Gabe Pereyra, framed the new funding as following two product milestones: the release of the company's first post-trained open-weight model and the introduction of Harvey LAB, the Legal Agent Benchmark.
The latest round included participation from a range of existing backers: Sequoia, Kleiner Perkins, a16z, Coatue, Conviction, Elad Gil, Evantic, GIC, Goldman Sachs Alternatives, Verified Capital, and WNDR.
Contextual notes
- Harvey has positioned the new capital for internal model development rather than for other corporate purposes; the announcement does not provide further detail on allocation beyond that stated aim.
- The company highlights deep penetration of elite law firms and several large corporate legal teams as evidence of commercial traction.
Disclosure
The article presents the company's announcement and reported metrics without additional commentary on valuation methodology or future performance.