675 Million to $6 Billion: How Legora Became Europe’s Fastest-Growing Company

The Stockholm-founded company has tripled its valuation in four months and grown nearly 9x in under a year, as law firms race to embed artificial intelligence into their workflows before competitors do it first

Legora, the Swedish legal AI startup, is in talks to raise a new funding round that would value the company at $6 billion — tripling its valuation just four months after its last raise, according to Bloomberg.

The round has not been finalised and the amount being raised remains unclear, but it is expected to be led by an existing investor. If it closes, it would cap one of the most extraordinary growth trajectories in European startup history: Legora was valued at $675 million in May 2025, hit $1.8 billion by October, and now stands at $6 billion — a nearly ninefold increase in under a year.

Founded in 2023 by Max Junestrand, August Erseus, and Sigge Labor, Legora builds a collaborative AI platform designed to help lawyers research, review, draft, and advise. The platform now serves more than 600 law firms and in-house legal teams across 50 markets, up from 250 firms in 20 markets as recently as May. Its client list includes some of the world’s most prestigious firms, among them Linklaters, Bird & Bird, and Cleary Gottlieb.

The company has raised $266 million to date across six rounds, backed by a roster of top-tier investors including Bessemer Venture Partners, ICONIQ Growth, General Catalyst, Andreessen Horowitz, Benchmark, Redpoint Ventures, and Y Combinator.

The speed of Legora’s ascent reflects the extraordinary pace at which legal AI is being adopted. Law firms, traditionally among the slowest industries to embrace technology, are now racing to integrate AI into their workflows — driven partly by client pressure, partly by competitive anxiety, and partly by the sheer productivity gains the tools offer. Contract review, due diligence, legal research, and document drafting — tasks that once consumed thousands of billable hours — can now be completed in a fraction of the time.

But the valuation also raises questions. Analysis from Best Practice AI estimates that Legora’s $6 billion price tag would represent roughly 260 times its current annual recurring revenue of approximately $23 million — or around 150 times even if the company hits its reported $40 million ARR target for this year. For context, best-in-class SaaS companies typically trade at 10 to 15 times revenue. The gap suggests investors are pricing in explosive future growth, but also that the valuation is heavily dependent on strong renewal rates and continued expansion within existing accounts.

The timing of the raise is notable. It comes less than two weeks after Anthropic, the AI company behind Claude, launched a legal plugin that rattled public markets. The announcement triggered a sharp sell-off in shares of data and legal services companies, with Swedish legal information provider Karnov falling by double digits in a single session. A Barclays survey subsequently identified the legal services sector as particularly vulnerable to AI-driven disruption.

For Legora, the Anthropic move appears to have been more catalyst than threat. CEO Junestrand responded on LinkedIn by drawing a distinction between a standalone plugin and what he described as a collaborative, matter-centric, production-grade platform — suggesting that depth of integration, not raw AI capability, is what matters in legal workflows.

Legora is not alone in the space. Rival Harvey, also backed by top-tier venture capital, is reportedly raising $200 million at an $11 billion valuation. Between them, the two companies now account for a combined $17 billion in anticipated valuation — a remarkable figure for a sector that barely existed three years ago.

Whether these valuations prove justified will depend on whether legal AI can move from pilot programmes to firm-wide adoption, and whether clients renew once the novelty fades. For now, the money is betting they will.

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