Legal technology startup Harvey AI is in advance stage of discussions to raise more than $250m in a fresh funding round, potentially valuing the company at $5bn, reported Reuters citing sources familiar with the matter.

The round could be led by venture capital firms Kleiner Perkins and Coatue, with existing investor Sequoia Capital also anticipated to increase its commitment.

The reported valuation marks a sharp increase from the company’s previous $3bn valuation attained a few months earlier.

Investor interest in Harvey AI is said to be driven by rapid revenue growth. The startup’s annualised run rate reached $75m in April, up from $50m earlier this year, representing a 50% increase.

This growth has been attributed to partnerships with firms such as PwC and direct sales to large companies for internal legal operations.

Harvey, Coatue and Sequoia did not respond to Reuter’s requests for comment, while Kleiner Perkins declined to comment.

Founded in 2022, Harvey AI provides technology that aids legal professionals with tasks including document review, contract creation, and legal research.

The company is focused on developing tools for large law firms and corporate legal departments, with custom modules for areas like M&A compliance.

The forthcoming funding round would represent a renewed commitment from Kleiner Perkins, which previously co-led the startup’s $80m Series B round in December 2023.

In February 2025, Harvey completed its Series D round led by Sequoia. Other participants included Coatue, Kleiner Perkins, OpenAI Startup Fund, GV and Conviction, alongside Elad Gil, and REV, the venture arm of RELX Group, which owns LexisNexis Legal & Professional.

At the time, Harvey AI in a statement said: “This investment enables us to continue improving our platform, scaling agentic workflows, building out integrated enterprise use cases, and growing our team.”