AI law startup Norm raises $120M, hits unicorn valuation

AI law startup Norm has raised a $120 million Series C round led by Khosla Ventures, valuing the startup at $1.2 billion.

Funding Details

AI law startup Norm on Tuesday said it has raised $120 million in a Series C funding round led by Khosla Ventures, valuing the almost three-year-old startup at $1.2 billion.

Business Model

Norm has built an AI-native law firm, called Norm Law, that uses the company's own AI agents, employs human attorneys to supervise them, and offers legal services to enterprise clients. It's also building AI agents that can supervise other AI agents as they go about their tasks. The company charges based on outcomes rather than billing its clients hourly, in contrast to the rest of the industry.

Market Context

Norm is one of the many legal AI startups that have popped up in the past few years, such as Harvey and Legora, looking to capitalize on the need to automate tedious work.

Investors

Other investors in Norm's Series C include:

• Bain
• Craft Ventures
• Coatue
• Vanguard
• New York Life
• TIAA
• Tony James (former president and COO of Blackstone)
• Jeff Hammes (former chairman of Kirkland & Ellis)
• Fenwick LLP

Use of Funds

The fresh capital will be used to help build out the product and hire more attorneys. The company has raised more than $260 million in funding to date.