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Business Insider
21-05-2025
- Business
- Business Insider
The offers flooded in for red-hot legal tech startup Legora's new $80 million funding round
General Catalyst and Iconiq Growth are co-leading an $80 million funding round into Legora, a startup that makes software to help bogged-down lawyers speed up legal research and drafting. The new funding for the New York, London, and Stockholm-based Legora will value the company at $675 million, following last year's $35 million Series A. Existing investors Redpoint Ventures, Benchmark, and Y Combinator increased their stakes in this Series B round. In an exclusive interview with Business Insider, Legora CEO Max Junestrand said the company wasn't actively seeking funding, but still, the offers flooded in. "I don't think it's a secret that things have been really working," Junestrand said. When Seth Pierrepont heard whispers of Legora's fundraise, he boarded a flight to Stockholm. The Iconiq investor had done dozens of calls with law firms about the tools changing the way their attorneys work. The Legora name kept coming up. "What they're looking for now is a partner," Pierrepont said, "someone that they know will build the features they ask for and will respond quickly to the questions they have. And I think that is the gap that Legora has stepped into." Junestrand declined to provide revenue or growth figures, but said the company's revenue growth is "extremely positive." It has 250 clients in 20 markets, including big-league law firms like Cleary Gottlieb, Goodwin, Bird & Bird, and Mannheimer Swartling, Sweden's largest law firm. Legora builds chatbots and agents — software that can perform basic tasks on their own — for things like redlining a contract, drafting, or filling in a checklist for a transaction. In recent months, it's added a Microsoft Word add-in and other features that large law firms demand. Legora's closest analog is legal-tech heavyweight Harvey. The company works closely with major law firms to craft custom software, offering the agility of a startup with the tailored approach of a high-end consulting firm. Its annual recurring revenue surpassed $70 million in April, according to a spokesperson. Legora's funding is the latest in a string of high-profile legal-tech investments, following companies like Harvey and Supio. General Catalyst, in particular, has been building a strong portfolio of startups reshaping the delivery of legal services. In February, it led a $105 million initial round for Eudia, a platform designed for Fortune 500 legal teams. Mary O'Carroll, Goodwin's chief operating officer, said the firm piloted many tools before signing up with Legora. On the surface, some of the products seem quite similar, she said. But Legora edged out its competition with a clean, easy-to-use interface and a feature called tabular review, which lets users search thousands of files for exactly the information they need all at once. Legora also stood out for its approach to empowering lawyers. The company meets regularly with firm leaders to tightly tailor the product to their needs. "We feel like we're not just adopting the technology," O'Carroll told BI, "we're co-creating with them." The new funding gives Legora fresh firepower to grow its team and chip away at Harvey's dominance. In addition, the company announced that General Catalyst's Jeannette zu Fürstenberg and Iconiq's Pierrepont have joined its board. Investors are betting on the team just as much as the tech to drive growth. Jack Altman, an investor through his venture firm Alt Capital, described Junestrand as an "ambitious, gritty" European founder with a Silicon Valley ethos. Gradient's Darian Shirazi, who wrote an angel check into Legora, praised Junestrand's customer obsession, which he says is matched only by his focus on results. With a team of around 100 employees, Legora is proving that smaller doesn't mean slower, and that being second to market doesn't mean it's out of the race.
Business Insider
29-04-2025
- Business
- Business Insider
Big Law isn't the dream anymore. Young lawyers are betting on startups instead.
Last spring, Laura Toulme made a decision that would have raised more than a few eyebrows on her old litigation team. She left a clear career path at Hecker Fink to join Harvey, an AI-powered legal-tech startup backed by the OpenAI Startup Fund. Now, as an applied researcher at Harvey, she spends her days translating legal workflows into machine-readable algorithms. "It felt like this is a train I had to jump on now or I'd miss it," Toulme explains, recalling how a lively call with an early employee convinced her that the future of law had arrived. She's far from alone. According to an American Bar Association survey released this month, over 6% of 2024's law school graduates have already defected to business and industry employers. While most grads — 54% — landed in law firm positions, others are choosing to put their JD degrees to work at startups, building the next generation of legal software. Startups like Harvey, Legora, and Eudia are capitalizing on this trend, helped by significant funding to expand their teams. With legal-tech fundraising surpassing $2 billion last year, according to PitchBook data, new grads and junior associates now have more opportunities than ever to trade in billable hours for stock options and the chance to influence the future of their industry. If you can't beat 'em, join 'em As a 14-year-old, Jonathan Melke knew he would be a lawyer someday. "I like to argue," Melke joked, in a clipped German accent. After law school, he accepted a spot at Hogan Lovells, a prestigious global law firm. In his role advising tech and consumer electronics brands on European regulations, he came across Legora, a Swedish-born legal startup working to streamline contract review, due diligence, and legal research. Melke sent founder Max Junestrand a LinkedIn request, and within hours, Junestrand replied, inviting him to chat. Junestrand outlined Legora's mission: automate the drudge work so lawyers could focus on big-picture thinking. After the call, Melke applied for a job on Legora's growth team. "I want to build the future," he said, not watch it pass by. Historically, young attorneys steered away from tech jobs because they worried it would hurt their ability to return to working at a law firm, says Omar Haroun, a three-time legal-tech startup founder. He said securing capital and hiring lawyers for his latest startup, Eudia, has gotten easier since the legal-tech gold rush. Going into tech "was probably thought of as a career-limiting move before," said Haroun, "and now, it's starting to become a career-enhancing move." Long viewed as laggards, law firms and lawyers have begun to adopt artificial intelligence to deliver better, cheaper, and faster services. This has led to an explosion of startups taking large language models and repackaging them as apps to assist with legal work. Founders are flocking to legal tech for a reason. "Legal work is perfectly suited to how AI works," said Anna Barber, a venture capitalist at the early-stage fund M13 and a Yale Law School graduate. "It's very logical, it's very rule-based. The best answer can be discerned from looking at documents and facts and prior artifacts." Until recently, big law firms relied on armies of junior associates to scour these artifacts for the information they needed to support their cases or sign off on deals. Increasingly, that research can be supported by artificial intelligence. This is cause for concern among some young attorneys, according to Kristina Subbotina, who left Cooley to start a solo law practice, Lawlace. Her assistant, who's been applying to law schools recently, asked her if becoming a lawyer "even makes sense" anymore. The paradox, several lawyers said, is that the threat of automation is nudging more fledgling lawyers not toward the safety of Big Law but toward the startups where the code is written. Large legal startups Harvey and Eudia say law school grads account for over 20% of their workforces. There are other explanations for this shift. Peggy Gartre, a career counselor specializing in law degree-preferred positions at the Dean School of Law at Hofstra University, thinks many young people are disillusioned with the traditional practice, with its billable hour quotas and heavy workloads. Plus, the number of years it takes to become a partner at a major law firm is getting longer and longer, said Kimberly Kappler Fine, who runs an online platform for lawyers wanting to move from law to industry. Then there's the Trump factor, said Fine. Recently, the White House has taken aim at major law firms over what the president has labeled as "frivolous" lawsuits against his administration. Firms like Kirkland & Ellis and Paul Weiss, among others, have negotiated agreements with the administration to avoid penalties. Fine argues that this capitulation, rather than the "fear factor" around automation, is driving some lawyers out of the profession. Pay cuts and payouts In her second year as an associate at Campbell Teague, Nehan Sethi started getting contacted by friends of friends who were building software for reviewing contracts and tracking billable hours. They asked her to test drive their tools. Sethi realized that, as a lawyer, she had something to offer these startups. Now working in business development at Harvey, she tailors sales demos for lawyers to showcase how the platform can be applied to specific areas of the law. Recently, she helped sign Harvey's first firm-wide customer in India. Sethi said having a lawyer on a sales call changes the nature of each conversation. "They take us seriously," she said. "They understand that we know what they need and the product knows what they need." Startups offer flexible hours, mission-driven work, and a shot at upside. But for all the perks, they still can't compete with the gilded path to Big Law partner in one critical way: compensation. Big Law firms offer massive salaries to offset the high cost of attending law school. Starting salaries top $225,000 and increase significantly with experience. Equity partners in these firms can earn considerably more by receiving a cut of the firm's profits. Toulme, the Harvey researcher, says the company offers generous salaries and stock option grants — yet even a startup with around half a billion dollars in funding could not match her salary as an associate. That helps explain why equity sits at the center of every recruiting pitch. Startup hires receive stock options that, on paper, appreciate each time investors mark up the company's valuation. If Harvey or Legora someday break the IPO tape, early employees could convert those slips of paper into life-changing windfalls. Toulme believes that Harvey's future success will more than cancel out the pay cut she took to get on board. Of course, belief only goes so far. Only a very small percentage of venture-backed companies ever reach a public listing, and even the winners can take over a decade to cash out. During that long slog, founders might reprioritize roles, pivot the product, or sell the business on terms that leave option holders with pennies. "It would almost be naive not to acknowledge that it was a risky move," said Toulme. "I mean, it's a startup, it's a brand new industry, it's a brand new job. There's a lot of brand news." Yet it is precisely that uncertainty that keeps young attorneys engaged. For lawyers tired of billable-hour quotas — and for a profession finally willing to experiment with the tools it once dismissed — the chance to help design the future of legal practice is beginning to outweigh the security of a corner office. Whether the bet pays off in millions or fizzles in a shutdown, Toulme and her peers will at least be able to say they tried to build something new, rather than bill another 10th of an hour watching it happen. Do you have a story to share about leaping into legal tech? Contact this reporter at mrussell@
Yahoo
14-02-2025
- Business
- Yahoo
AI software startup Eudia raises upto $105m in Series A round
Eudia, an AI software startup for legal teams, has raised up to $105m from Series A round that was led by General Catalyst, an investment and transformation company. After 18 months of operating in stealth mode, the startup revealed its name, mission, and platform to the public. The funding round saw participation from B3 Capital, Backbone, Defy, Everywhere Ventures, Firsthand, Floodgate, Hakluyt Capital and Sierra Ventures, in addition to angel investors Gokul Rajaram, Chris Re, Andrew Sieja, Mike Gamson, and Scott Belsky. Eudia will receive $30m upfront, and the remaining $75m will be provided contingent upon the company securing additional acquisition targets, subject to General Catalyst's approval, reported Bloomberg. The startup plans to use much of the initial $30m to expand its product and engineering teams. General Catalyst managing director Marc Bhargava was quoted by the publication: "We're trying to incubate companies that will grow, will go public, where the founders are in the driver's seat." The funding is part of General Catalyst's $1.5bn Creation fund, which focuses on startups building AI tools for businesses such as legal and accounting. Eudia's Augmented Intelligence Platform allows legal departments to take control of their institutional knowledge, leverage AI to enhance it, and empower their in-house legal teams. By combining AI with human expertise, Eudia enables chief legal officers (CLOs) to move beyond simply solving problems—shaping company strategy, improving risk management, and unlocking new value for their business. Eudia co-founder and CEO Omar Haroun said: "Visionary CLOs see AI's potential but understand they cannot compromise on trust, accuracy, or a deep understanding of their organization's unique context." "Eudia combines a proprietary Augmented Intelligence platform with human expertise to supercharge legal professionals, helping organizations scale efficiently, mitigate risk effectively, and unlock billions in unrealized business value." The platform is used by companies, including Cargill, DHL Group, and Duracell. "AI software startup Eudia raises upto $105m in Series A round" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
