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

Norm, an almost three-year-old startup in the AI legal space, announced on Tuesday that it has raised $120 million in a Series C funding round led by Khosla Ventures. The round values the company at $1.2 billion, granting it unicorn status.

The company has built an AI-native law firm called Norm Law, which uses its own AI agents supervised by human attorneys to provide legal services to enterprise clients. Unlike traditional law firms, Norm charges based on outcomes rather than hourly billing. It is also developing AI agents that can supervise other AI agents as they perform tasks.

Norm is among several legal AI startups, such as Harvey and Legora, that have emerged in recent years to capitalize on automating tedious work. Other investors in the 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), and Fenwick LLP.

The fresh capital will be used to further develop the product and hire more attorneys. To date, Norm has raised more than $260 million in total funding.