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

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

The San Francisco-based company stated the latest round will accelerate its efforts to help law firms, in-house legal teams, and professional services firms build and own their intelligence at scale.

Harvey develops legal AI tools for law firms and corporate legal departments, automating legal workflows such as 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 latest round. New investors Diffusion, Lightspeed, Sapphire Ventures and Whale Rock also joined the funding.

Harvey also announced today that it acquired San Francisco-based startup Guardrails AI, an AI security platform for agents, marking its fourth acquisition this year. The company did not disclose financial terms of the deal.

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

Legal tech companies have attracted millions from investors. 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 new venture capital fund with backing from a group of corporate general counsels and law firm Wilson Sonsini launched on Tuesday to invest in early-stage legal, regulatory and compliance tech startups.

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