Harvey AI has raised $300 million at a $5 billion valuation — just four months after closing its last $300 million round. The Series E round was co-led by Kleiner Perkins and Coatue, with participation from the usual suspects: Sequoia, OpenAI Startup Fund, and others who've been riding Harvey's rocket ship since it launched three years ago.
Key Points:
- Harvey's $5 billion valuation is now the highest among legal AI startups, surpassing competitors Ironclad ($3.2B) and Clio ($3B)
- The company's revenue is growing fast — hitting $75 million in annual recurring revenue in April, up 50% from $50 million earlier this year
- Harvey plans to double its 340-person headcount and expand beyond legal into professional services like tax accounting
The startup now has clients in 53 countries and counts major law firms like Paul, Weiss plus corporate legal departments at KKR and PwC among its customers. That client base has grown to 337 legal clients, all using Harvey's AI to review documents, draft contracts, and handle the kind of tedious legal work that usually requires armies of junior associates billing by the hour.
But here's where it gets interesting — and potentially disruptive. Law firms make money from hours billed to clients, so lawyers finding efficiencies with Harvey could lead to enormous revenue loss for these firms. It's the classic innovator's dilemma: the very firms paying for Harvey's services might be funding their own disruption.
Goldman Sachs analysts estimated that about 44% of legal work could eventually be automated, which explains why investors are throwing money at this space like it's 2021 all over again. AI startups received 57.9% of global venture capital dollars in Q1 2025, compared to just 28% in the same period last year. Harvey is riding that wave hard.
The legal AI market has become a proper battleground. Competitors include Casetext (acquired by Thomson Reuters), Andreessen-backed Eve, Spellbook, Robin AI, and others all fighting for a piece of what Harvey describes as a $1 trillion legal market. But Harvey's secret sauce isn't just the technology — it's built on leading large language models like OpenAI's ChatGPT and Anthropic's Claude, combined with data and workflows designed for and by lawyers.
Now Harvey is looking beyond law firms. The fresh capital will fund expansion into other professional services — think tax accounting and consulting — where the same document-heavy, knowledge-intensive work could benefit from AI automation. It's a logical move, but one that puts Harvey on a collision course with even more established players.
With AI adoption among legal professionals jumping from 19% in 2023 to 79% this year, Harvey is betting its $5 billion war chest can make it the go-to AI solution for knowledge workers across multiple industries.