Legora, the legal technology company co-founded by Max Junestrand, has raised $550 million in a Series E funding round at an $8.8 billion valuation, as it seeks to expand the use of AI across law firms.
The round was led by Atreides Management. Junestrand said the company now has more than 2,400 customers and annual recurring revenue of more than $200 million, three years after it was founded.
Legora develops software that helps lawyers work with documents and manage legal tasks. Rather than training its own general-purpose legal model, the company uses leading external models and directs different tasks to the system it considers most suitable.
Junestrand said the decision had allowed Legora to concentrate on the infrastructure surrounding the models, including security, privacy, document processing and the handling of large collections of files.
Legora bets on customer-led growth
The company says it has built its product alongside law firms, beginning with Mannheimer Swartling, one of the largest firms in the Nordic region. Legora initially established an office in one of the firm’s conference rooms while developing the technology with its lawyers.
Junestrand said that approach remained central to the business. In one example, a legal engineer who had previously worked as a lawyer travelled from New York to Stockholm to help engineers develop a feature required by a large US law firm.
Legora employs more than 150 legal engineers, who work with customer teams on complex matters and help firms incorporate the software into their practices. The company says it now has more lawyers than software engineers, while daily active users spend more than two hours a day on the platform.
Its pricing is based partly on consumption, meaning customers’ bills rise and fall according to the amount of work carried out by the software. Junestrand said the model was intended to ensure that Legora grows when it is delivering value to clients.
He said the company had initially delayed selling the product until lawyers could rely on it, and chose not to compete primarily on lower prices. “We win on the product and the service, so we don’t chase lower prices to close a deal,” he said.
Funding to expand legal AI agents
Legora plans to use the new funding to develop what it calls an “agentic operating system” for legal work. The system is designed to bring together a firm’s procedures, training methods and approval processes, which the company says are often spread across individuals and separate tools.
Its agents are intended to carry out complete tasks, such as due diligence on a transaction or document discovery in a dispute, while lawyers intervene when professional judgement is required. The system is designed to work within tools lawyers already use, including Microsoft Word, as well as in law offices.
Legora says information taught to the system remains the property of the relevant firm, while the underlying models can be changed as newer systems become available.
Junestrand said the company believed AI would increase the amount of legal work available rather than simply reduce demand for lawyers. He said some firms using Legora were hiring more lawyers and that users had told the company the technology had renewed their enjoyment of the profession.
