Legal AI company Legora announced a $550 million Series E on October 21 at an $8.8 billion valuation, according to TechCrunch. Atreides Management led the round, with Baron Capital, Bessemer Venture Partners, General Catalyst and Menlo also in. In April the company was valued at $5.6 billion. Annual recurring revenue has moved from $100 million then to more than $200 million now, and the new money goes toward expanding across North America. Its main rival, Harvey, raised $550 million about a month earlier at $15.5 billion.
What stands out to me is not the size of the check. It is that revenue doubled in roughly six months. That tells me law firms are paying for AI that does finished work, not just answering questions in a chat window. When buyers in a conservative profession move that fast, the demand is real.
As an investor, I also read this as a warning. Legora and Harvey have each raised $550 million within about a month, and Legora is now coming to North America with fresh capital. When I look at founders through ELP Ventures, I would be wary of a third general tool for big law firms. The better opening is in the parts of the legal system these platforms are not built for.
That is where iQuash sits. Most people never hire a law firm for a parking ticket, a fine or a notice with a mistake in it. They pay it or ignore it. iQuash checks those documents for defects and connects people with licensed lawyers when there is something worth fighting. The same technology Legora sells to firms can work for ordinary people, and that side of the market is still wide open.