Legaltech startups raise over $1 billion in 2024, fueling rapid AI-driven growth

Legaltech startups have collectively raised over $1 billion in 2024, signaling a surge in AI-driven innovation within the legal industry.

Among the leaders, Harvey, founded in 2022, has secured more than $500 million in funding. It boasts usage by lawyers at eight of the 10 highest-grossing U.S. law firms, with annual recurring revenue surpassing $70 million as of April.

British-based Luminance, founded in 2015, has raised $165 million and experienced a sixfold increase in annual recurring revenue over two years, driven by soaring demand for its AI-powered legal contract review and drafting platform.

Newer entrants like Eudia and Legora, both founded in 2023, have raised $105 million and $120 million respectively. Eudia's custom AI agents aim to reduce months of legal grunt work to mere days or minutes, while Legora helps lawyers accelerate legal research and drafting, adding 250 clients across 20 markets in just two years.

This influx of capital and rapid adoption of AI tools is transforming legal workflows, enhancing efficiency, and reshaping the competitive landscape for law firms and legal professionals worldwide.

"Lawyers at eight of the 10 highest-grossing US law firms use the platform," highlighting Harvey's market penetration.

"Luminance's core corporate product offering has grown annual recurring revenue 6x in the past two years," underscoring the demand for AI-driven contract review.

"Eudia's custom agents promise to shrink months of legal grunt work down to days, or even minutes," illustrating the potential for AI to streamline labor-intensive tasks.

"Legora has added 250 clients in 20 markets," demonstrating rapid expansion and adoption.

The legaltech sector's robust funding and innovation trajectory in 2024 reflect a broader trend of AI integration across professional services.

Legaltech startups have raised over $1 billion in 2024, driven by rapid AI adoption. Key players like Harvey, Luminance, Eudia, and Legora are expanding their client bases and revenues, revolutionizing legal research, contract review, and drafting with AI-powered solutions.