AI law startup Norm announced a $120 million Series C funding round, propelling its valuation to $1.2 billion. The investment, led by Khosla Ventures, signals strong market confidence in AI's disruption of the legal sector.

Norm operates an AI-native law firm, Norm Law, leveraging proprietary AI agents supervised by human attorneys. This model aims to automate routine legal tasks for enterprise clients. Notably, Norm charges clients based on outcomes, deviating from traditional hourly billing, a move that could pressure established legal service providers.

This latest funding, bringing Norm's total raised to over $260 million, will fuel product development and attorney recruitment. The company competes in a growing field of legal AI startups like Harvey and Legora, all seeking to automate legal work. Investors include Bain, Craft Ventures, and Coatue, alongside notable figures from finance and law.