Business model of Legora

Aspect	Details
How Legora Started	Founded in 2023 by Max Junestrand and Sigge Labor at Stockholm School of Economics’ Business Lab incubator. Built collaborative AI platform to automate legal document review, research, and drafting. Participated in Y Combinator 2024 batch. Achieved unicorn status in under 2 years.
Present Condition	Valued at $1.8 billion (October 2025). Nearly 200 employees across Stockholm, London, New York, Denver, and Sydney. Serves 400+ law firms in 40+ markets including Linklaters, Cleary Gottlieb, Goodwin, MinterEllison. Annual recurring revenue: $23M (expected $40M by year-end). Total funding: $230M+.
Future of Legora & Industry	Plans to double workforce size and establish additional global hubs. Legal AI market projected for explosive growth as 44% of legal tasks could be automated. Industry attracted $2.4B+ globally in 2025. Legora positioned as Europe’s strongest challenger to Harvey (valued at $8B). Expansion into mid-market firms and corporate legal departments planned.
Opportunities for Young Entrepreneurs	Legal tech represents massive untapped opportunity with 50,000+ law firms and 40,000+ corporate legal departments globally. AI automation in professional services (legal, accounting, consulting) offers billion-dollar potential. Collaborative approach with clients creates stronger product-market fit. Deep industry expertise combined with AI capabilities is highly valuable.
Market Share of Legora	Specific market share unavailable, but Legora is #2 player in legal AI behind Harvey. Competes with Ironclad ($150M ARR), Luminance, Spellbook, Robin AI, and Noxtua. Growing faster than competitors—60% customer growth in 5 months. Dominates Nordic/European markets while expanding aggressively in US and Asia-Pacific regions.
MOAT (Competitive Advantage)	Client Collaboration Model: Partners with elite law firms as co-developers, not just customers, ensuring deep adoption. Speed of Execution: Unicorn in under 2 years with 60% growth in 5 months. Enterprise Integration: Deep integration with Microsoft Word, iManage, SharePoint, and legal databases. Global Scaling: Multi-market presence with 40+ markets vs competitors’ regional focus. Elite Client Base: Reference customers like Linklaters accelerate peer adoption.
How Legora Makes Money	Subscription-based B2B SaaS model with enterprise pricing for law firms and corporate legal departments. Land-and-expand strategy: Starts with small pilot teams, expands to firm-wide licenses (10-20x seat multiplication). Average revenue per customer: ~$280,000 annually. Potential premium modules for e-discovery, expert witness analysis, and market benchmarking. Recurring revenue model ensures steady cash flow.