March 25 (Reuters) - Legal software firm Harvey has raised $200 million at an $11 billion valuation and will use some of the funds to expand its artificial intelligence agent as investor appetite for AI tools accelerates.
AI agents, which plan, decide and act autonomously, have become venture capital's most sought-after bet as professional services companies focus on streamlining offerings and improving efficiency.
Harvey's latest round, which brings its total funding to more than $1 billion, was co-led
by returning investors GIC and Sequoia, with participation from existing backers including Andreessen Horowitz and Coatue, among others, the company said on Wednesday.
San Francisco-based Harvey develops legal AI tools for law firms and corporate legal departments, helping automate complex legal workflows such as contract analysis, due diligence, compliance and litigation.
The fresh capital will be used to expand its AI agent and grow its legal engineering teams, the company said.
"AI isn't just assisting lawyers. It's becoming the system through which legal work gets done," said Winston Weinberg, CEO and co-founder of Harvey.
"The law firms and in-house teams leading the way are building agents that execute complex workflows so lawyers can focus on judgment, strategy and outcomes."
The legal AI market is in the midst of a funding frenzy, with rivals Clio raising $500 million and Eve raising $103 million last year.
In December, Harvey had raised $160 million at an $8 billion valuation in a Series F round led by Andreessen Horowitz.
(Reporting by Pragyan Kalita and Prakhar Srivastava in Bengaluru; Editing by Sahal Muhammed and Jonathan Ananda)
