Legal Tech Startup Harvey Aims to Raise $250M in New Funding Round, Valuing Company at $5B

Legal tech startup Harvey is in talks to raise over $250 million in a funding round led by Kleiner Perkins and Coatue, which could value the company at $5 billion, according to a Reuters report citing anonymous sources. Sequoia Capital, which led Harvey's previous $300 million Series D funding just three months ago, is also expected to participate in this new round. Investors are particularly drawn to Harvey's rapid market traction and its innovative use of generative AI technology. Harvey has experienced impressive growth as law firms and legal professionals worldwide increasingly adopt AI to streamline their workflows. This includes simplifying legal research, document preparation, and data analysis. The company reported an annualized run-rate revenue of $75 million in April, reflecting its strong financial performance and market demand. Adding to its technological arsenal, Harvey recently announced it will begin using AI models from Anthropic and Google, expanding its existing partnership with OpenAI, one of its early backers. The involvement of multiple leading AI providers underscores Harvey's commitment to leveraging cutting-edge technology to enhance its services. It remains unclear if the OpenAI Startup Fund, which initially supported Harvey, will also participate in this latest funding round. When contacted for confirmation, Harvey, Coatue, Sequoia, and Kleiner Perkins did not immediately respond to the queries. This recent funding round, if finalized, would significantly bolster Harvey's resources, enabling further development and expansion in the legal tech sector. The company's swift rise highlights the growing importance of AI in transforming traditional legal practices and improving efficiency in the industry.