Harvey Explores IPO After $400M ARR and $550M

Harvey is discussing a potential IPO with Latham & Watkins, with no set timeline. The legal AI startup reported $400 million in ARR announced in September, a $550 million funding round in the fall, and over 3,500 clients, while the tech IPO window depends on Anthropic and other filings.

Latham & Watkins has advised on 186 deals and $101 billion since 2016

Latham & Watkins has advised companies on 186 transactions that raised over $101 billion since 2016, according to Deal Point Data, making it the most active firm by number of deals. The firm also signed an agreement last year to deploy Harvey's software across all its lawyers. Harvey and Latham are currently developing customized tools for the firm's fund formation practice.

Market window: record attributed to SpaceX and uncertainties around Anthropic

SpaceX is credited with the largest IPO in history. Anthropic could surpass this record, potentially as soon as the week before Thanksgiving. OpenAI may aim for an IPO in early 2027. A strong performance from Anthropic in the coming weeks could lead to a new wave of companies attempting to go public.

Capital and revenue: $550 million raised and $400 million in ARR announced

In the fall, Harvey raised $550 million in a funding round led by Diffusion and Lightspeed Venture Partners, with participation from Goldman Sachs Alternatives, J.P. Morgan’s Growth Equity Partners, Coatue, and funds advised by T. Rowe Price, all of which frequently invest in companies preparing for an IPO. In September, the company indicated it had surpassed $400 million in annual recurring revenue. This figure is close to the $509 million recorded by Affirm in the fiscal year prior to its IPO in 2020, as well as the $242 million achieved by Snowflake in the first half of 2020 before its own listing that same year. The source mentions an annual revenue of $65 billion for Anthropic. In the same segment, competitor Legora raised $550 million at a valuation of $8.8 billion last month.

IPO discussions with Latham and indicative valuation of $15.5 billion

Harvey has engaged in preliminary discussions with Latham & Watkins regarding a potential IPO, according to its CEO Winston Weinberg. Two people close to the matter mention a recent valuation of $15.5 billion and confirm that the discussions are still in the early stages, with no imminent IPO. The startup may wait for the performance of upcoming tech IPOs before making a decision and is monitoring these filings. Harvey declined to comment, and Latham & Watkins did not respond to a request for comment.

Client base and product: over 3,500 accounts and 80% of the Top 100 US firms

Harvey reports having over 3,500 clients, including 80% of the top 100 law firms in the U.S. and 20% of Fortune 500 companies, with CVS Health and Lockheed Martin among the newly mentioned clients. The company markets an artificial intelligence solution for legal applications. Before the launch of ChatGPT, Winston Weinberg and Gabe Pereyra, a former researcher at Google DeepMind, began using large language models to create a tool capable of reading and writing legal documents. AI has reshaped a market once seen as limited, with about 1.3 million lawyers in the United States, and known for being slow to adopt new technologies. Harvey has structured its leadership team with the arrival of Steve Zad as Chief Revenue Officer, Keith Enright for strategy, Rachel Hepworth for marketing, and Anique Drumright for product, along with the promotions of John LaBarre to General Counsel, Katie Burke as Chief Operating Officer, and the CFO role held since 2024 by Alan Ghelberg.