One of legal's hottest AI startups says it's cracked a way for law firms to get richer

In the rapidly evolving sector of AI-driven legal tools, a competitive landscape is emerging. Harvey, the standout startup backed by OpenAI, has established itself as a frontrunner, but now faces formidable competition from Legora, a Swedish company that offers law firms innovative avenues to safeguard and profit from their intellectual property. Harvey has quickly reached an impressive $100 million in annual recurring revenue and boasts an $8 billion valuation, transforming the AI legal market into a lucrative venture. In contrast, Legora recently raised $150 million to promote its unique workspace software, designed to facilitate collaboration between law firms and their clients while providing secure access to documents and templates. Legora's mission is clear: to enhance profit margins for law firms. With the rise of generative AI, there are concerns that corporate legal departments may increasingly handle tasks traditionally outsourced to external counsel. Legora posits that its software not only improves the client experience but also boosts revenue potential. The company's latest innovation, Portal, is set to revolutionize how firms operate by offering a branded workspace that clients can access for a fee. This platform aims to streamline legal processes, minimize reliance on email communication, and ensure that sensitive data remains protected from AI training by default. Max Junestrand, Legora's CEO and a former professional gamer, emphasizes the importance of user-friendly solutions tailored for legal professionals. "To serve lawyers effectively, we must prioritize client needs, as they are accustomed to doing the same for their clients," he stated during a recent interview. Junestrand underlined the company's commitment to the success of its clients, saying, "Our purpose is to ensure you win; your success translates to our success." As law firms race to adopt new technologies in response to client demands for improved efficiency, Legora has gained momentum, recently closing a Series C funding round at a valuation of $1.8 billion. The company has expanded its customer base from 250 to over 400 across 40 markets. A critical question remains: will corporate legal teams invest in a software portal that operates on a metered basis? Large organizations are particularly cautious about data management, especially when their legal partners may also serve their competitors. Legora must address how it navigates potential conflicts of interest when dealing with proprietary knowledge. Junestrand is confident in Legora's ability to meet these challenges. "We are acutely aware that we depend on our clients' work demands," he remarked. While Legora is not the first to introduce a client portal for law firms, it aims to offer more than the traditional file-sharing systems like Thomson Reuters' HighQ or iManage Share. Legora envisions Portal as a monetizable platform for law firms' intellectual property and workflows, allowing clients to manage their processes independently while Legora's legal engineers handle the technical aspects. Specific details on pricing models for clients or Legora’s own subscription fees remain undisclosed. Meanwhile, Harvey continues to collaborate with law firms to create tailored software solutions that clients can utilize, retaining a portion of the revenue generated. Unlike Harvey, which integrates with existing platforms like iManage and Microsoft SharePoint, Legora has partnered with prestigious firms to refine its offering, including Linklaters and Deloitte. General availability of Portal is anticipated in early 2026.