- Norm Ai has raised $120 million from investors in a new funding round to help automate legal services and rethink how the industry bills for its work.
- The financing, set to be announced Tuesday, values the startup at $1.2 billion.
- Khosla Ventures led the funding round, with participation from Blackstone Inc., Bain Capital Ventures and Coatue Management, among others.
- Norm has raised more than $260 million in funding to date.
- Founded in 2023, Norm is one of a growing number of startups using advances in AI to help legal professionals draft documents, conduct research and review contracts.
- While competitors sell software to law firms, Norm has created its own law firm that provides AI-powered legal services directly to clients.
- The startup also brings together attorneys and artificial intelligence engineers to build and deliver legal services.
- Norm Law, as the firm is called, charges customers based on outcomes rather than the industry standard of billable hours.
- The new funding will be used to further develop these supervisory AI systems as well as to hire additional engineers and attorneys.
AI legal startup Norm Ai has raised $120 million in a Series C funding round, valuing the company at $1.2 billion. Founded in 2023, Norm is revolutionizing the legal industry by automating services and changing billing practices.15
Khosla Ventures led the funding, with participation from Blackstone Inc., Bain Capital Ventures, and Coatue Management. Norm has now raised over $260 million since its inception.34
Unlike traditional firms, Norm Law charges clients based on outcomes rather than hourly rates, aiming to better reflect the value of services provided.8
Samir Kaul, managing director at Khosla, emphasized that this model instills confidence in clients to utilize AI for complex legal tasks, stating, "You're getting top-class, real human lawyers, as well as terrific AI-based technology to help that along."
The new capital will be directed towards developing supervisory AI systems and hiring additional engineers and attorneys.9
Norm's platform is already utilized by clients representing over $30 trillion in assets, showcasing the growing demand for AI in legal and compliance work.
As the legal industry increasingly adopts AI, Norm stands out by integrating human expertise with advanced technology, positioning itself as a leader in the evolving landscape of legal services.
“Khosla Ventures led the $120 million Series C round, with participation from Blackstone, Bain Capital Ventures, and Coatue Management. Norm has raised over $260 million to date and plans to use the funds to develop supervisory AI agents for regulated industries.”
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