Legal AI startup Legora is planning a new funding round with a target valuation roughly double the $5.6 billion valuation it achieved just four months ago. This trend clearly reflects the high market enthusiasm for artificial intelligence companies empowering professional services. Multiple sources familiar with the matter revealed that Legora has begun preliminary discussions with investors, targeting a valuation of no less than $10 billion. This funding round will include both newly issued shares and existing share sales to the market.
The Swedish startup provides intelligent tools for practicing lawyers and in-house legal teams, covering contract review, document drafting, accelerating due diligence efficiency, and helping legal professionals stay updated on regulatory changes. Its client roster includes law firm Linklaters, consulting firm Deloitte, and Heineken. The company's primary competitor is the US legal AI startup Harvey, which is reportedly in talks for a funding round valued at approximately $15 billion.
Major law firms are racing to gain an edge in the AI sector, with some opting to develop their own large language models instead of purchasing third-party tools. Kirkland & Ellis, the world's largest law firm by revenue, announced in May plans to build its own proprietary AI platform, moving away from using generic competitor tools. The US firm has partnered with technology companies like Palantir. However, Legora's CEO, Max Juhnstrand, stated in a June interview that law firms do not need to choose between "building it themselves" and "buying it," and should simply select the best mature products available on the market. Facing a landscape dominated by large US AI companies, he aims to position Legora as a benchmark European AI company.
Legora's business growth has been rapid: its annualized recurring revenue surged 50% quarter-over-quarter in the second quarter to $150 million. Over the past three months, the number of clients, including law firms and corporate legal departments, grew by a quarter to 1,500. The company plans to more than double its workforce from 700 to 1,500 by the end of the year.
Sweden has emerged as a hotbed of Europe's AI industry. Lovable, a startup specializing in vibe-coded programming that claims to allow users to develop applications with just a few lines of text, completed a $400 million funding round this week at a valuation of $13.3 billion, driven by explosive growth. Local Swedish investors reveal that top Silicon Valley venture capital firms like Sequoia and Andreessen Horowitz have recently visited Stockholm to seek quality AI investment opportunities. A Swedish investor commented, "Sweden has suddenly spawned a large number of decacorns (startups valued at over $10 billion), and it's now one of the hottest startup regions in Europe." An executive with experience at several Stockholm-based startups added, "Back when Spotify and Klarna were rising, venture capital firms swarmed into Sweden. After a few years of cooling down, major investment institutions are now setting up a permanent presence here again."
Founded in 2023, Legora's investors include Benchmark, Accel, Bessemer Venture Partners, Iconiq Capital, and General Catalyst. The company declined to comment on the matter. Sources say the funding round is still in its early stages and deal terms are subject to change. Some investors estimate the final valuation could range between $11 billion and $12 billion. Swedish local investors predict that large US tech giants are likely to consider acquiring quality local AI startups. For example, Workday acquired Swedish enterprise AI company Sana for $1.1 billion last year. One investor noted, "Lovable and Legora are now so large that only the top tech giants have the financial resources to acquire them." Last year, the Swedish mainstream business community, led by the Wallenberg industrial family, signed a cooperation agreement with the world's most valuable company, Nvidia, to jointly build new AI infrastructure, including supercomputers and technology research and development centers.