Harvey, the leading legal AI startup, has acquired Harvey Hexos — a two-year-old startup that creates tools for creating demos, videos, and product guides — as the company continues its aggressive expansion amid fierce competition in the legal tech market.
Hexus founder and CEO Sakshi Pratap, who previously held engineering roles at Walmart, Oracle, and Google, told TechCrunch that her San Francisco-based team has already joined Harvey, while the startup’s India-based engineers will come once Harvey sets up an office in Bangalore. Pratap adds that she will lead an engineering team focused on accelerating Harvey’s offerings to in-house legal departments.
“What we bring to Harvey is deep expertise in building enterprise AI tools in adjacent problem spaces,” Pratap said. “This experience helps Harvey move faster in a market that is becoming increasingly competitive.”
Hexus raised $1.6 million from Pear VC, Liquid 2 Ventures and angel investors prior to the acquisition. While Pratap declined to share the terms of the deal, she said the structure was centered around “long-term team incentives.”
The acquisition comes as Harvey looks to strengthen its position as one of the most important startups in the field of artificial intelligence. The company confirmed last fall that it is now valued at… 8 billion dollars After raising $160 million, its funding by 2025 will reach $760 million. Andreessen Horowitz led that new round, and was joined by new investors T. Rowe Price and WndrCo, along with existing backers Sequoia Capital, Kleiner Perkins, Conviction, and angel investor Elad Gil. (The year began with $3 billion valuation After Sequoia led a $300 million Series D round in the company.)
Harvey now claims more than 1,000 clients in 60 countries, including the majority of the 10 largest US law firms.
When TechCrunch spoke with co-founder and CEO Winston Weinberg in November, he traced Harvey’s origin story to a cold email sent to OpenAI CEO Sam Altman. Weinberg, then a first-year partner at O’Melveny & Myers, and co-founder Gabe Pereira, a researcher who worked at Google DeepMind and Meta and was Weinberg’s roommate at the time, tested GPT-3 on landlord-tenant law questions from Reddit. When they showed the AI-generated answers to lawyers, two out of three said they would send 86 out of 100 responses without any edits.
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“That was the moment we said, ‘Wow, this entire industry can be transformed by this technology,'” Weinberg said.
They emailed Altman on July 4, 2022, received a call that same morning, and received their first check from the OpenAI Startup Fund shortly after. According to Weinberg, the OpenAI Startup Fund remains the second-largest investor in Harvey.
