Harvey AI, The Darling of LegalTech, Eyes Massive Round and $2B Valuation

AI has left no stone unturned. It is now revolutionizing the legal world and could be the catalyst to bring legal tech out of its slight malaise.

Despite a slow start with legal tech startups raising just $356 million so far this year, down from $871 million last year, there's a game-changer on the horizon:

Harvey AI is set to raise a whopping $600 million. 

There’s a new era in legal tech developing in front of us.

Let’s take a look at startups in this sector that are contributing to its growth.

Ironclad, an all in one contract management tool that was founded in 2014 has raised the most funds. As they say, old is gold. But it’s also important to adapt with the changing times. The company has done exactly this, incorporating AI in its offerings.

You might say they have raised the most funding because of their longevity. Well then, let’s take a look at the fastest growing firms in this space:

Remember when we said old is gold? That might not entirely be the case. It’s the new shiny toys that are expanding rapidly. 4 of the 5 fastest growing firms in this space have only existed for half a decade.

Harvey AI: The Legal World’s Disruptor

Harvey is expanding at an exponential rate. No, not Harvey Spectre from ‘Suits’; Harvey AI. This is a startup that is disrupting the AI legal tech sector. Having raised $80 million last December (2023), the startup’s looking to raise another massive $600 million.

It’s like the ChatGPT of the legal world. Everyone seems to be talking about it - atleast all the lawyers are. Backed by OpenAI themselves, this startup is one you should keep your eye out for. 

However, it’s not fair to harp on about Harvey. Before we move on to the most valuable graph, let’s give Robin AI and Darrow their spotlight.

Robin AI: Innovating M&A Due Diligence

Founded in the UK in 2019, Robin AI recently announced its most disruptive tool yet - Robin AI reports. This could be the golden egg for Robin AI. Solving the unmet need of handling M&A due diligence with this tool, the startup might become the next big thing in the Legal Tech AI space.

Darrow AI: Justice at Your Fingertips

With 113 employees and 24% headcount growth, having been founded only in 2020, Darrow AI is another name to remember if you are looking to invest in this sector.

It is a tool designed to help lawyers find important legal cases. It uses AI to look through tons of real-world and legal information to identify harmful events and legal violations. It estimates the number of affected people, predicts the chances of winning, and calculates the potential case value, enabling lawyers to focus on providing justice rather than finding new cases.

Investment Insights and Future Growth

Now, here’s the most valuable graph as promised. As an investor, you want to know when a company would potentially raise its next funding round. For this purpose, we looked into our employee dataset and the last funding round data of companies:

Harvey’s very recent funding round and a 227.5% headcount growth over the past year indicates the intention to expand rapidly. Although not as bold with their expansion, Robin AI and Lexion who have raised fundings in the last year have solid headcount growth rates of approximately 50%, signaling that they might be in a growth phase.

We have laid these numbers out for you and we rest our case. This is proof that if you are an investor, the Legal Tech AI space is one to keep an eye out for. Although it’s a niche market, the value these firms can provide to their target market and the high rates of expansion shows promise.

About the data

The data seen above is from Crustdata - the most accurate realtime LinkedIn data source for growth and private equity investors. It indexes billions of public data points on companies every week to provide an edge over the private market.