The revolutionary legal tech startup, Harvey AI, announced exciting news recently - it has raised a whopping $300 million in a Series E funding, which sets their valuation at an impressive $5 billion. This news was shared in an article by Fortune. Both Kleiner Perkins and Coatue led this funding round, which also saw contributions from existing investors like Conviction, Elad Gil, OpenAI Startup Fund, and Sequoia.

This smashing success comes close on the heels of another great accomplishment - just four months ago, Harvey announced a $300 million Series D funding round, led by Sequoia, at a valuation of $3 billion.

Unlike many AI companies that prefer to run lean operations, Harvey AI is eager to expand. Despite being just three years young, this dynamic startup has already hired 340 employees and aims to double that count with support from its new investment. Part of this expansion plan involves diversifying into areas beyond law, like tax accounting. This aligns naturally with Harvey's mission to develop AI tools that streamline professional services - their current range of solutions assists lawyers in document reviews and contract drafting and boasts 337 legal clients.

The company has already shown remarkable growth, with its annual revenue run rate rocketing to $75 million in April, a significant leap from $50 million earlier this year, as Reuters reported last month.

However, the road ahead is not entirely free of obstacles. Established players in the legal tech space, such as the decade-old Ironclad and 17-year-old Clio are also strong contenders. No strangers to raising substantial funds, Clio secured a $300 million round at a $3 billion valuation last year.