Four months after a $3B valuation, Harvey AI grows to $5B

San Francisco, CA – Harvey AI, the pioneering startup revolutionizing legal work through advanced automation, has announced a significant milestone: securing $300 million in Series E funding, catapulting its valuation to an impressive $5 billion. This rapid ascent comes just four months after the company was valued at $3 billion, underscoring the explosive growth and demand for its AI-powered legal solutions.

The latest funding round was co-led by prominent venture capital firms Kleiner Perkins and Coatue. Existing investors, including Conviction, Elad Gil, the OpenAI Startup Fund, and Sequoia, also participated, reaffirming their confidence in Harvey AI’s trajectory and market leadership. The news was first reported by Fortune.

Harvey AI’s remarkable growth is not limited to its valuation. In an industry where many AI companies prioritize lean operations, Harvey is actively expanding its workforce. The three-year-old startup currently employs 340 professionals and intends to double its headcount with the newly acquired funds, as reported by Fortune. A substantial portion of these new hires will be dedicated to developing AI products for professional services beyond the legal sector, including specialized areas like tax accounting, signaling a strategic diversification of its offerings.

The company’s AI solutions are already making a significant impact, assisting lawyers in critical tasks such as document review and contract drafting. Harvey AI currently serves a robust client base of 337 legal entities, solidifying its position as a go-to platform for legal automation.

Financially, Harvey AI has demonstrated exceptional performance, reaching an annualized run-rate revenue of $75 million in April. This marks a substantial increase from $50 million earlier in the year, as revealed by Reuters last month, highlighting its strong revenue generation capabilities.

While Harvey AI stands out for its rapid expansion, it operates within a competitive landscape. Established legal tech companies like 10-year-old Ironclad and 17-year-old Clio, which secured a $300 million round at a $3 billion valuation last year, continue to innovate. However, Harvey AI’s accelerated growth and ambitious expansion plans position it as a formidable force poised to redefine the future of professional services through AI.