US Legal Tech Deal Count Fell 28% in a Year

The United States is still home to the most legal tech rounds, but it is closing fewer of them. In the four quarters from Q4 2025 through Q3 2026, the Legal Tech Circle funding tracker logged 38 equity rounds for US companies, worth $1.77 billion. In the four quarters before that, it logged 53 rounds worth $2.02 billion. Round count fell 28% and dollars fell 12%.

Over the same period, total legal tech equity rose 36%. So the US share of the money dropped from 73% to 47%.

We looked at the calendar year split in US vs. Europe vs. the Rest. This piece uses rolling four quarter periods, which smooths out timing and shows the US trend more clearly.

How Much Did US Legal Tech Raise Without Harvey?

Harvey is a big part of the US number. It raised $1.02 billion across five rounds in the latest period, including its $550 million Series H in September 2026. Take Harvey out, and the other US companies raised $750 million across 33 rounds. A year earlier, US companies other than Harvey raised $1.42 billion across 51 rounds. That is a drop of 47% in dollars and 35% in rounds.

Part of that drop is one deal. Filevine’s $400 million raise, announced in September 2025, sits in the earlier period. Even without it, US dollars outside Harvey fell.

The quarterly counts show when the slowdown came. US rounds ran at 17, 12 and 15 in the first three quarters of 2025. They were 14 in Q4 2025 and 15 in Q1 2026, then fell to 4 in Q2 2026 and 5 in Q3 2026.

The rounds that did close were larger. The median US round rose from $7.25 million to $15.0 million. Excluding Harvey, it rose from $6.75 million to $10.0 million.

Where the Growth Went Instead

Outside the US, dollars climbed. European and UK companies raised $1.20 billion across 30 rounds in the latest period, up from $494 million across 33. Most of that is Legora, the Swedish company whose $550 million Series D closed in March 2026. Without Legora, Europe and the UK rose 9%, from $414 million to $451 million. The UK on its own grew, to $254 million across 11 rounds from $203 million across 12.

Canada rose to $553.0 million across three rounds, almost all of it Clio’s $500 million Series G. Funded companies came from 20 countries in the latest period, up from 17.

What Might Explain It

We do not think this is a sign that US investors have lost interest in legal tech. More likely, US money is concentrating in a smaller number of larger rounds, and that is showing up as fewer deals. The seed squeeze we described in our piece on early stage funding hit the US hard: US early stage rounds outside Harvey fell from 39 to 23.

There is also a counting caveat. Small US rounds are sometimes disclosed only in filings, and our tracker may pick up more of them over time. The low Q2 and Q3 2026 counts in particular could rise.

What It Means for Buyers and Founders

For US buyers, fewer new domestic vendors means the market is consolidating around companies that are already funded. European vendors with fresh capital, including Legora, which said its Series D would fund US growth, will be a bigger part of shortlists.

For US founders, the competition for early checks is real, and the bar for a Series A is higher. For European founders, the data shows steady but modest growth outside Legora, with the UK the strongest market.

Common Questions

How many US legal tech rounds were there in the past year?

38 equity rounds from Q4 2025 through Q3 2026, down 28% from 53 the year before.

How much did US legal tech raise?

$1.77 billion in the latest four quarters, of which Harvey raised $1.02 billion.

Is Europe catching up with the US in legal tech funding?

On dollars, yes, mostly because of Legora. On round count, the US still leads, 38 to 30.

Does this include the UK?

The Europe figure in this piece includes the UK. The UK alone raised $254 million.

*Updated Oct 25, 2026 with corrected tracker data: US deal count down 28%.*