Announced Tuesday, the $120 million Series C funding round has propelled AI law startup Norm to a $1.2 billion valuation, cementing its unicorn status in the legal technology sector. Led by Khosla Ventures, the latest investment brings the nearly three-year-old company total capital raised past $260 million. Norm operates through an AI-native framework via its Norm Law division, deploying proprietary artificial intelligence agents to manage legal workflows. Human attorneys supervise these automated systems, while secondary AI supervisors are being engineered to oversee peer agents during task execution. This architecture enables the firm to abandon traditional hourly billing in favor of outcome-based pricing, directly aligning costs with client results. The model positions Norm within a rapidly expanding cohort of legal AI ventures, including Harvey and Legora, all targeting the automation of administrative and complex legal tasks for enterprise clients. Participating investors in the round include Bain Capital, Craft Ventures, Coatue, Vanguard, New York Life, TIAA, Tony James, former Blackstone president and COO, Jeff Hammes, former chairman of Kirkland & Ellis, and Fenwick LLP. Norm intends to deploy the new capital to accelerate product development and hire additional licensed attorneys. The funding reflects growing institutional confidence in AI-driven legal operations and marks a pivotal scaling phase for the company as it seeks to reshape enterprise legal service delivery.