Money is piling into legal AI, pushing valuations into territory once reserved for far larger software companies.
The latest example: Legora, which is in talks to raise $400 million at a valuation exceeding $5 billion, in a round where venture capital firm Accel is participating, according to sources familiar with the matter. The deal is not finalized and terms could change.
Legora declined to comment. Accel did not respond to a request for comment.
If completed, the financing would mark Legora’s third raise in roughly six months, bringing total capital raised over that period to $600 million. The company raised $150 million in October at a $1.8 billion valuation, and $80 million in September at a $675 million valuation. Forbes first reported both rounds.
The surge mirrors recent fundraising activity at rival Harvey, which Forbes reported last week is in talks to raise $200 million at an $11 billion valuation — just two months after a round that valued it at $8 billion.
This private-market enthusiasm is a stark contrast to the public markets where the parent companies of legal software incumbents LexisNexis and Westlaw have seen their stock price drop roughly 30% this year. The broader enterprise software selloff intensified in February after AI model maker Anthropic released a product it said could automate dozens of office tasks, fueling concerns that AI could erode demand for legacy software tools.
Founded in 2023, Legora develops AI software designed to help lawyers save time on repetitive tasks like document review and contract drafting. It integrates into tools like Microsoft Word and allows users to analyze large volumes of documents, conduct in-depth research across databases and draft and edit contracts.
Cofounder Max Junestrand, a 26-year-old Swedish entrepreneur, was featured on the 2026 Forbes 30 under 30 AI list. The startup serves some 500 law firms, including Cleary Gottlieb, Goodwin and others.
More than $5 billion flowed into legal AI startups in 2025, per PitchBook. Meanwhile, Goldman Sachs has estimated that 44% of legal work could be automated. Venture capital is underwriting that assumption at multibillion-dollar valuations.
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