Harvey AI's $5 Billion Valuation: What a Legal AI Unicorn Tells Us About Startup Hype, Venture Capital Strategy, and Market Reality

This week, legal AI startup Harvey announced a massive $300 million Series E financing, at a valuation of $5 billion.

To be clear, that number—five billion—is extraordinary. Harvey's $5 billion valuation represents a significant milestone in the legal AI space, especially considering Harvey closed $300 million in Series D financing in February (4 months ago) at a $3 billion valuation.

So what gives? Or is this another case of private market exuberance racing ahead of fundamentals? Let's break down how Harvey got here, what this valuation really means, and what it tells us about the broader startup and VC landscape.