Harvey AI Secures $300M Funding, Reaching $5B Valuation in Legal Tech Boom

Four months after a $3B valuation, Harvey AI grows to $5B | TechCrunch

Harvey AI, a startup that provides automation for legal work, has raised $300 million in Series E funding at a $5 billion valuation, the company told Fortune. The round was co-led by Kleiner Perkins and Coatue, with participation from existing investors, including Conviction, Elad Gil, OpenAI Startup Fund, and Sequoia. The financing comes just four months after Harvey announced that Sequoia led a $300 million Series D round at a $3 billion valuation. While many AI companies aim to keep headcount low, Harvey is rapidly expanding its staff. The three-year-old startup already employs 340 people and plans to double that number with its fresh funds, Fortune reported. Some of the new staff will be hired to help Harvey build AI products for professional services beyond legal, including tax accounting. The company's AI solutions, which assist lawyers in reviewing documents and drafting contracts, are used by 337 legal clients. Harvey has been growing at a rapid clip, reaching an annualized run-rate revenue of $75 million in April, up from $50 million earlier in the year, Reuters reported last month. Some of Harvey's competitors include older legal startups, such as 10-year-old Ironclad and 17-year-old Clio, which raised a $300 million round at a $3 billion valuation last year.

Harvey raises $300 million at $5 billion valuation to be legal AI for lawyers worldwide

PwC partner Bivek Sharma (center) and Harvey CEO Winston Weinberg (right) speak to AI editor Jeremy Kahn at Brainstorm AI this week. Today, we're sharing news that legal LLM Harvey raised a $300 million Series E at a $5 billion valuation. The company, which sells lawyers AI solutions, lists large law firm customers like Paul, Weiss as well as in-house legal departments at major corporations, including KKR and PwC. With the fresh funding, Harvey plans to double its headcount to expand its global presence and diversity into new professional services like tax accounting. "If you expand as quickly as we are, you just need to do raises like this," says Winston Weinberg, who is the company's CEO, cofounder and a lawyer. Though Harvey is only about three years old, it has clients in 53 countries and boasts a 340-plus person headcount. The Series E is co-led by Kleiner Perkins and Coatue. It counts Sequoia, GV, DST Global, Conviction, Elad Gil, Open AI Startup Fund, Elemental, SV Angel, Kris Fredrickson and REV (the VC group LexisNexis owner RELX Group) as participants. On Friday, I had the pleasure of visiting Harvey's swanky Park Avenue NYC headquarters. And it was filled with lawyers. Lawyers in the kitchen. Lawyers spinning in ergonomic chairs. Lawyers smiling and waving at me. Though CEO Weinberg notes that the lawyer-workforce is unique to the company's New York office, and that only 18% of its headcount is lawyers, he believes that these attorney-employees are essential to achieve Harvey's goal of "partnering" with the industry. So far the strategy is working: Harvey boasts 337 legal clients. Long before OpenAI released its first ChatGPT bot, entrepreneurs have been trying to make AI lawyers a thing. These companies have largely failed. Harvey, by its investors' accounts, is not failing. "We've seen the company perform incredibly well across all facets," Kleiner Perkins' partner Ilya Fushman, who co-led this round as well as Harvey's Series B and C, tells me. "It sets the blueprint for how a vertical AI enterprise company can build and execute." Still, Harvey is just one solution in the crowded field of AI lawyers that aim to disrupt the $1 trillion legal market. Though it could be meaningless in the long-run, with this funding, Harvey has nabbed the highest public valuation of any legal AI startup. Competitors Ironclad raised a 2022 Series E at a $3.2 billion valuation and Clio raised a 2024 $900 million Series F at a $3 billion valuation. Harvey's technology is built atop leading large language models -- OpenAI's ChatGPT, Claude's Gemini and so on and combined with data and work flows designed for and by lawyers. It also customizes its models on firm-specific data by feeding the tech proprietary documents that remain private to the firm. While the security and privacy of client data is obviously critical in legal matters, Harvey says it meets industry-recognized security standards, engages in regular third-party testing and maintains that over 10% of its organization is security professionals. Juan Pablo Sandoval Celis, a lawyer/MBA, who works on the company's business development team says that customers have used Harvey to reduce legal processes from weeks to minutes. Of course, law firms make money from hours billed to clients. So lawyers finding efficiencies with Harvey could lead to an enormous revenue loss for these law firms. Weinberg notes that certain legal work is increasingly billed via fixed fee, though certain specialized work will forever be billed hourly. He also believes that widespread use of AI will increase work for lawyers. Says Weinberg, "I think it'll get to a certain point where you aren't able to compete -- or able to support large corporations -- unless you are using tools like this."

Harvey raises $300M in funding for its legal AI assistant - SiliconANGLE

Harvey, a developer of artificial intelligence software for legal professionals, today announced that it has raised $300 million in fresh funding. The Series E investment was led by Kleiner Perkins and Coatue. They were joined by more than a half dozen other backers including Alphabet Inc.'s GV investment arm, the Open AI Startup Fund and Sequoia. The funding round values Harvey at $5 billion, up from $2 billion following its previous raise earlier this year. Harvey, officially Counsel AI, develops AI tools that promise to make legal teams more productive. The company says that its platform is used by more than 330 law firms and other organizations in 50-plus countries. Harvey reportedly generated $75 million in annualized recurring revenue from those customers as of April, up from $50 million a few months earlier. Attorneys often start the process of drafting a new legal document by researching relevant laws and court decisions. Harvey's flagship AI tool, Harvey Assistant, can automate the task. It enables legal teams to aggregate information from court filings and other sources using natural language prompts. The tool includes citations in its prompt responses to help legal teams verify the accuracy of the output. After collecting the documents necessary for a project, Harvey Assistant can automate the document drafting process. From there, it checks the draft against an organization's internal guidelines for legal filings. Harvey Assistant can also proofread newly created documents, translate them to other languages and, in the case of contracts, autofill the required information into each field. Complex legal agreements often go through dozens of revisions before they're finalized. Attorneys indicate that a section should be deleted or modified with a red strikethrough, which is why the editing process is commonly known as redlining. Harvey says that its platform can automatically summarize such document changes to streamline the revision management process for users. The company built a custom AI model to power its redlining capabilities. It features about 100,000 parameters and uses a convoluted neural network architecture, which is commonly used for image processing tasks. Before inputting a contract into the AI model, Harvey Assistant turns the PDF file that contains it into an image. The software then applies a grayscale filter. According to the company, its engineers have determined that this arrangement increases the AI model's accuracy and speeds up inference. Harvey's other features are powered by off-the-shelf large language models from providers such OpenAI. Going forward, it also plans to use AI models from LexisNexis, a provider of legal document databases and software tools for attorneys. LexisNexis parent RELX plc participated in Harvey's newly announced funding round through its REV venture capital arm. According to Fortune, Harvey will use the proceeds from the investment to double its more than 340-strong workforce. The company also plans to expand into new market segments beyond the legal profession.

AI legal assistant Harvey now valued at $5B

Harvey, officially Counsel AI, secured $300 million in Series E funding led by Kleiner Perkins and Coatue, valuing the company at $5 billion. This funding round marks a substantial increase in Harvey's valuation, which stood at $2 billion earlier in the year following its previous fundraising effort. Additional investors participating in this Series E round included GV, the investment arm of Alphabet Inc., the OpenAI Startup Fund, and Sequoia. RELX plc, the parent company of LexisNexis, also contributed through its venture capital arm, REV. Harvey specializes in developing artificial intelligence software specifically designed for legal professionals. The company's platform is currently utilized by over 330 law firms and various other organizations across more than 50 countries globally. This extensive adoption has contributed to Harvey's financial performance. As of April, Harvey reportedly generated $75 million in annualized recurring revenue. This figure represents a significant increase from $50 million in annualized recurring revenue recorded just a few months prior, indicating accelerated growth in its customer base and service utilization. A core offering from Harvey is its flagship AI tool, Harvey Assistant, which aims to enhance the productivity of legal teams. The tool automates several time-consuming tasks traditionally performed by attorneys. When drafting new legal documents, lawyers typically begin by researching relevant laws and court decisions. Harvey Assistant streamlines this initial research phase, allowing legal teams to aggregate information efficiently from diverse sources such as court filings using natural language prompts. A key feature of this tool is its inclusion of citations within its prompt responses, enabling legal teams to verify the accuracy and origin of the generated output. Beyond information aggregation, Harvey Assistant also automates the document drafting process itself after necessary documents have been collected. Following the initial draft, the tool checks the newly created document against an organization's specific internal guidelines for legal filings. It also offers proofreading capabilities for these documents and can translate them into different languages. For contracts, Harvey Assistant can automatically populate required information into each designated field, further expediting the creation process. The process of revising complex legal agreements, commonly known as redlining, often involves numerous iterations before finalization. Attorneys traditionally indicate sections for deletion or modification using a red strikethrough. Harvey's platform introduces automation to this process by summarizing document changes automatically, thereby streamlining revision management for users. To power these redlining capabilities, Harvey developed a custom AI model. This model features approximately 100,000 parameters and utilizes a convoluted neural network architecture, a design commonly employed in image processing applications. Prior to processing a contract, Harvey Assistant converts the PDF file containing the contract into an image. Subsequently, the software applies a grayscale filter to this image. The company indicates that its engineers have determined this specific arrangement enhances the AI model's accuracy and improves the speed of inference. While Harvey's redlining functions rely on a custom-built AI model, other features within its platform are powered by off-the-shelf large language models, including those from providers like OpenAI. Moving forward, Harvey intends to integrate AI models from LexisNexis, a prominent provider of legal document databases and software tools tailored for attorneys. The participation of RELX plc, LexisNexis's parent company, in Harvey's recent funding round through its REV venture capital arm underscores this planned collaboration.

OpenAI-Backed Legal A.I. Startup Harvey Reaches $5B Valuation

With $300 million in fresh capital, Harvey AI is transforming the legal landscape and eyeing global dominance. Generative A.I. is shaking up the traditionally slow-moving legal world. San Francisco-based Harvey AI is one of the startups leading the charge. With a fresh $300 million in funding from investors including OpenAI's Startup Fund, the three-year-old company is now valued at $5 billion. Sign Up For Our Daily Newsletter Sign Up Thank you for signing up! By clicking submit, you agree to our <a href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime. See all of our newsletters The latest funding round, announced yesterday (June 23), was co-led by Kleiner Perkins and Coatue Management. In addition to OpenAI's Startup Fund, venture capital powerhouses like Sequoia Capital, GV and DST Global also participated. This follows another $300 million raise in February, which valued Harvey at $3 billion. Founded in 2022, Harvey develops A.I.-powered tools for law firms and corporate legal departments, aiming to streamline repetitive tasks and boost efficiency. The company currently serves 337 legal clients in 53 countries and plans to continue expanding into key international markets. "Fueling global growth is top of mind for us," Katie Burke, Harvey's chief people officer, in told Observer. She noted strong traction in the U.K., Australia and India. For now, Harvey's focus remains squarely on the legal sector, with top-tier clients like Paul, Weiss and A&O Shearman using the platform to shift away from administrative work and toward more strategic tasks. However, Harvey is also eyeing a broader footprint across professional services -- including M&A and tax accounting -- areas already reflected in its work with in-house legal teams at firms like PwC. "The best way to think about it is: first step, legal; long-term, broader professional services," Burke said. As the legal industry embraces generative A.I., instances of hallucinations -- when systems produce inaccurate or fabricated information -- have proliferated across court cases. Harvey addresses this through a dual strategy: engineering for accuracy and training clients to "trust but verify." "Part of what we're doing is teaching our customers how to think about responsible A.I. use," said Burke. Harvey faces competition from more established legal tech players like Ironclad and Clio, each valued above $3 billion. Burke believes Harvey's edge lies in its high level of customization and strong emphasis on enterprise-grade trust and security. As part of that strategy, the company today unveiled a new Workflow Builder, a feature that enables firms to create tailored A.I. agents adaptable to specific legal workflows. The latest funding will also support team growth. Harvey currently has more than 340 employees and recently added two senior executives: Siva Gurumurthy, formerly of Motive, as chief technology officer, and John Haddock, a Stripe alum, as chief business officer.