Legora in Talks to Raise Over $100 Million at $1.7 Billion Valuation as Legal AI Funding Surges

Legora Eyes $1.7B Valuation as It Seeks $100M+ for AI-Powered Legal Workflows

Legora, a Stockholm-based AI company focused on routine legal work, is in discussions to raise more than $100 million at a valuation of about $1.7 billion, according to people familiar with the talks. Bessemer Venture Partners is set to lead the round; Legora declined to comment.

The funding would more than double Legora's valuation since May, when it raised $80 million at $675 million. The company lists Deloitte LLP, Harbottle & Lewis LLP, and Mishcon de Reya LLP as clients.

What Legora Offers

Legora provides tools for contract review, letter drafting, and case summarization. Its stack now uses models from Anthropic, Google, and Mistral, moving beyond a single-model approach to improve coverage and reliability.

The company was co-founded in 2023 by CEO Max Junestrand and CTO Sigge Labor after seeing how much junior legal work centers on summarizing cases. The release of ChatGPT in late 2022 helped trigger demand for AI-driven workflow tools.

Why It Matters to Legal Teams

• Throughput: Offload first-pass review and drafting so lawyers focus on analysis and strategy.
• Cycle time: Faster turnarounds on NDAs, engagement letters, and routine correspondence.
• Consistency: Standardized templates, playbooks, and prompts reduce variance across matters.
• Cost control: Automation helps support fixed-fee and value-based pricing.

How to Evaluate Tools Like Legora

• Data security: Confirm data residency, retention, encryption, and training policies (no vendor training on your documents by default).
• Accuracy: Test on your clause libraries; measure precision/recall for issue spotting and benchmark against senior associate review.
• Auditability: Require citation trails, version history, and explainability for every output.
• Integrations: Validate performance with your DMS, CLM, eDiscovery, and timekeeping systems.
• Governance: Set prompt libraries, approval gates, and role-based access before rollout.
• ROI: Track hours saved, write-offs reduced, realization rates, and client satisfaction.

Market Context

Legal AI is crowded with peers such as US-based Harvey and UK-based Luminance. Harvey raised $300 million at a $5 billion valuation in June.

Legal tech startups have already raised a record $2.4 billion this year, according to Crunchbase. Expect sharper differentiation around specialty workflows, multilingual support, and compliance.

What to Watch Next

• Round closure and terms, including any strategic investors from major law or Big Four firms.
• Performance on multilingual contract review across EU jurisdictions and cross-border matters.
• Expansion from drafting assistance to end-to-end matter workflows, including intake and approvals.

Quick Actions for Firm Leaders

• Run a 60-day pilot on one workstream (e.g., NDAs or vendor contracts) with clear KPIs and error thresholds.
• Publish an AI usage policy and client disclosure language before scaling.
• Upskill teams on prompt patterns and review protocols; consider structured resources such as AI courses by job function.

Background

Legora emerged from the Y Combinator network and is based in Stockholm. Its clients and valuation step-up signal sustained demand for tools that reduce the rote parts of legal work while keeping expert judgment at the center.