Swedish legal AI company Legora is in early-stage talks with investors seeking a valuation of at least $10bn, a figure that more than doubles its previous assessment from four months ago. The potential financing could involve a mix of new capital injections and sales of existing shares, though the terms remain preliminary and subject to change.
Legora reported a 50 per cent increase in annual recurring revenue to $150mn in the second quarter compared with the first. Customer numbers also grew by a quarter to 1,500 over the same three-month period. This period of expansion includes plans to more than double the workforce from 700 to 1,500 employees by the end of the year.
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The firm develops artificial intelligence tools for lawyers and in-house legal teams. Its technology is designed to review and draft documents, speed up due diligence and help legal teams keep track of regulations. Its customers include Linklaters, Deloitte and Heineken.
While the Swedish company positions itself as a European AI champion, the sector is dominated by American firms. Its main rival, US legal AI start-up Harvey, is reportedly in talks to raise funds at a valuation of about $15bn. That number is nearly double Legora’s target, setting the stage for a competitive race in the professional services AI market.
Law firms are adopting different strategies for the technology. Kirkland & Ellis, a major US firm, said in May that it would build its own AI platform rather than rely on tools available to competitors. The firm has partnered with technology groups including Palantir. Legora’s chief executive, Max Junestrand, has argued against treating the issue as simply a choice between buying or building technology, instead favouring the use of the best available tools. This position places the Swedish company alongside law firms developing their own systems as competition over AI in professional services develops.
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Sweden has become one of Europe’s AI hotspots recently. Lovable, a Swedish “vibe-coding” start-up, raised $400mn this week at a valuation of $13.3bn. Elsewhere in the sector, Workday bought enterprise AI company Sana for $1.1bn last year. The broader business community, led by the Wallenberg family, also signed a deal with Nvidia last year to build new AI infrastructure including a supercomputer and technology centre.
Legora counts Benchmark, Accel, Bessemer, Iconiq and General Catalyst among its investors. For the company, the immediate development remains the financing discussions and the terms that may ultimately emerge. If they result in a transaction, the structure could combine new capital for the company with sales of existing shares while Legora pursues its plan to increase employee numbers from 700 to 1,500 by the end of the year. The financing comes as the company continues to increase both its recurring revenue and customer numbers.
