Swedish legal AI outfit Legora today said it has raised $550 million at an $8.8bn valuation, just six months after completing its last funding round.
The Series E funding round was led by Boston-based investment firm Atreides Management, a new invetstor, and brings on board a slew of other new investors.
It propels Legora’s valuation to $8.8bn from $5.6bn six months ago when it completed its $600m Series D funding round.
New investors coming on board in the round include Baron Capital, Capital Group, Fidelity, Glade Brook Capital Partners, and JP Morgan.
Existing investors taking part in the round include Accel, Benchmark, Bessemer Venture Partners, General Catalyst, Iconiq, Insight Venture Partners, Redpoint Ventures, Salesforce Ventures, and Sands Capital.
Legora said it built the round around investors with a long term view, bringing together long-term holders with strategic investors, and institutions that work with law firms and in-house legal teams every day.
Legora, along with Lovable, is one of the most hyped startups emanating from Sweden.
Its AI technology supports lawyers in researching, reviewing and drafting legal work. Legora is competing against US rival Harvey as they look to disrupt the legal market.
Legora said that its tech was meeting the demand as legal teams move beyond AI assistants toward AI agents that carry out multi-step work.
It said that in-house legal teams, which represented only a small fraction of Legora's customer base a year ago, made up more than 40 per cent of new customers in the third quarter.
It said the US was now Legora’s biggest market.
Legora said it will use the funds to expand in North America, where Legora has offices in New York, Denver, Chicago, Houston, San Francisco, Toronto and Mexico City, as well as in its markets across Europe and Asia-Pacific.
It will also use the funds to further invest in its agentic operating system, it said.
Max Junestrand, CEO and co-founder of Legora, said: "The opportunity in legal is enormous and we are still early. AI is changing the role of the lawyer, with more time for judgment and advice, and it is reshaping how law firms and in-house legal teams are organized and how their work gets done.
“We intend to lead that shift in the US and globally. We chose investors who share our long-term view and know what it takes to build a lasting company. They are the right partners for the years ahead.”