Harvey reportedly in discussions to raise $250M at $5B valuation

Legal tech startup Harvey is in discussions to raise more than $250 million in a funding round led by Kleiner Perkins and Coatue that would value it at $5 billion, Reuters reported, citing anonymous sources.

Sequoia Capital, which led the startup’s $300 million Series D just three months ago, is also expected to invest in this new round, Reuters reported, adding that investors are mostly drawn to the startup’s quick traction in the market.

Harvey has enjoyed fast growth as lawyers and legal firms around the world find ways to use generative AI tech to simplify research, documentation, and quickly examine their data. The company recorded annualized run-rate revenue of $75 million in April, Reuters reported.

The news comes just a couple days after Harvey said it would start using AI models from Anthropic and Google, adding to the models it uses from its backer, OpenAI.

The report did not mention if the Open AI Startup Fund, which backed Harvey early in its life, would also invest in this round.

Harvey, Coatue, Sequoia, and Kleiner Perkins did not immediately return requests for comment.