Harvey AI in Talks to Raise $250M at $5B Valuation, Signaling Rapid Growth in Legal Tech

Harvey reportedly in discussions to raise $250M at $5B valuation | TechCrunch

Legal tech startup Harvey is in discussions to raise more than $250 million in a funding round led by Kleiner Perkins and Coatue that would value it at $5 billion, Reuters reported, citing anonymous sources. Sequoia Capital, which led the startup's $300 million Series D just three months ago, is also expected to invest in this new round, Reuters reported, adding that investors are mostly drawn to the startup's quick traction in the market. Harvey has enjoyed fast growth as lawyers and legal firms around the world find ways to use generative AI tech to simplify research, documentation, and quickly examine their data. The company recorded annualized run-rate revenue of $75 million in April, Reuters reported. The news comes just a couple days after Harvey said it would start using AI models from Anthropic and Google, adding to the models it uses from its backer, OpenAI. The report did not mention if the Open AI Startup Fund, which backed Harvey early in its life, would also invest in this round. Harvey, Coatue, Sequoia, and Kleiner Perkins did not immediately return requests for comment.

Exclusive: Legal startup Harvey AI in talks to raise funding at $5 billion valuation

May 14 - Harvey AI, a fast-growing legal startup, is in advanced talks to raise over $250 million in a new round of funding at a valuation of $5 billion, sources familiar with the matter told Reuters. The funding round, led by venture capital firms Kleiner Perkins and Coatue, would mark a significant leap in Harvey's valuation from $3 billion in just a few months. Sequoia Capital, an existing backer, is also expected to increase its investment in this round. Investor interest in Harvey is driven by the company's revenue growth, according to people with knowledge of the company's numbers. Its annualized run rate reached $75 million in April, up from $50 million earlier this year. This 50% increase in a matter of months has been fueled by strategic partnerships with major consulting firms like PwC as well as direct sales to large corporations for in-house general counsel use, said the sources, who requested anonymity to discuss private information. Harvey, Coatue and Sequoia did not respond to requests for comment. Kleiner Perkins declined to comment. Harvey, founded in 2022, has become one of the most high-profile legal startups in the age of generative AI. The company uses AI models and machine-learning algorithms to assist lawyers and legal professionals in various tasks, including document review, contract drafting and legal research. It has focused on selling to elite law firms and the biggest corporations, and building specific modules for tasks such as M&A compliance. The startup, which began by partnering with OpenAI to build a custom-trained model for legal professionals, announced this week that it expanded its offerings by adding foundation models from Anthropic and Google to its platform. The round, once finalized, would mark a doubling down in Harvey for Kleiner Perkins, which co-led Harvey's $80 million Series B in December 2023. The adoption of AI technology has fueled surging interest from venture capital investors in the legal sector, which used to be overlooked by VCs for not having a growing addressable market and being dominated by a handful of big players. In 2024, global investments in legal technology startups reached $2.1 billion, according to data from Crunchbase. The enthusiasm has grown, with February 2025 seeing one of the highest investment totals in U.S. legal tech history. This surge in funding reflects the increasing adoption of AI and other advanced technologies in the legal industry, as firms seek to improve efficiency, reduce costs and enhance the quality of their services in an increasingly competitive market. Goldman Sachs analysts estimated last year that about 44% of legal work could eventually be automated. Reporting by Krystal Hu in New York and Anna Tong in San Francisco; Editing by Mark Porter Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence Anna Tong Thomson Reuters Anna Tong is a correspondent for Reuters based in San Francisco, where she reports on the technology industry. She joined Reuters in 2023 after working at the San Francisco Standard as a data editor. Tong previously worked at technology startups as a product manager and at Google where she worked in user insights and helped run a call center. Tong graduated from Harvard University. Krystal Hu Thomson Reuters Krystal reports on venture capital and startups for Reuters. She covers Silicon Valley and beyond through the lens of money and characters, with a focus on growth-stage startups, tech investments and AI. She has previously covered M&A for Reuters, breaking stories on Trump's SPAC and Elon Musk's Twitter financing. Previously, she reported on Amazon for Yahoo Finance, and her investigation of the company's retail practice was cited by lawmakers in Congress. Krystal started a career in journalism by writing about tech and politics in China. She has a master's degree from New York University, and enjoys a scoop of Matcha ice cream as much as getting a scoop at work.

Exclusive-Legal startup Harvey AI in talks to raise funding at $5 billion valuation

-Harvey AI, a fast-growing legal startup, is in advanced talks to raise over $250 million in a new round of funding at a valuation of $5 billion, sources familiar with the matter told Reuters. The funding round, led by venture capital firms Kleiner Perkins and Coatue, would mark a significant leap in Harvey's valuation from $3 billion in just a few months. Sequoia Capital, an existing backer, is also expected to increase its investment in this round. Investor interest in Harvey is driven by the company's revenue growth, according to people with knowledge of the company's numbers. Its annualized run rate reached $75 million in April, up from $50 million earlier this year. This 50% increase in a matter of months has been fueled by strategic partnerships with major consulting firms like PwC as well as direct sales to large corporations for in-house general counsel use, said the sources, who requested anonymity to discuss private information. Harvey, Coatue and Sequoia did not respond to requests for comment. Kleiner Perkins declined to comment. Harvey, founded in 2022, has become one of the most high-profile legal startups in the age of generative AI. The company uses AI models and machine-learning algorithms to assist lawyers and legal professionals in various tasks, including document review, contract drafting and legal research. It has focused on selling to elite law firms and the biggest corporations, and building specific modules for tasks such as M&A compliance. The startup, which began by partnering with OpenAI to build a custom-trained model for legal professionals, announced this week that it expanded its offerings by adding foundation models from Anthropic and Google to its platform. The round, once finalized, would mark a doubling down in Harvey for Kleiner Perkins, which co-led Harvey's $80 million Series B in December 2023. The adoption of AI technology has fueled surging interest from venture capital investors in the legal sector, which used to be overlooked by VCs for not having a growing addressable market and being dominated by a handful of big players. In 2024, global investments in legal technology startups reached $2.1 billion, according to data from Crunchbase. The enthusiasm has grown, with February 2025 seeing one of the highest investment totals in U.S. legal tech history. This surge in funding reflects the increasing adoption of AI and other advanced technologies in the legal industry, as firms seek to improve efficiency, reduce costs and enhance the quality of their services in an increasingly competitive market. Goldman Sachs analysts estimated last year that about 44% of legal work could eventually be automated. (Reporting by Krystal Hu in New York and Anna Tong in San Francisco; Editing by Mark Porter)