Harvey Hits $3B Valuation with $300MSeries D
Monocular Weekly #5: Harvey's $3B Rise and Smartsheet's $8.4B Take-Private Signal New Tech Shift
Hello from the Monocular Team! 👋
Welcome to this week’s edition of Monocular’s newsletter, where we bring you high-impact insights on investment banking, financial advisory, and innovative business models shaping the US, Mexico, Colombia, Chile, and Spain.
Our promise is that the newsletter will get better every week. Let’s dive into this week’s spotlight!
Quick Take: Harvey Hits $3B Valuation with $300M Series D 💼
On February 12, 2025, legal AI scaleup Harvey secured a $300 million Series D investment led by Sequoia Capital, with participation from Coatue, Kleiner Perkins, OpenAI Startup Fund, GV, Conviction, Elad Gil, and RELX Group’s venture arm, REV. This round brings Harvey’s valuation to $3 billion, following a 4x growth in annual recurring revenue (ARR) over the past year.
Valuable Insights
AI is scaling through niches: Industry-specific AI, like Harvey’s legal tech, is proving more scalable and defensible than general-purpose AI models.
Strategic investors signal M&A: REV’s involvement suggests that major legal data players see AI as essential, opening doors for future acquisitions and integrations.
AI is reshaping enterprise software: With 235 customers (including top US law firms), Harvey’s growth highlights how AI-native platforms are starting to compete with—or complement—traditional SaaS models.
Beyond legal tech: Harvey’s model signals that AI-driven automation could expand into other compliance-heavy industries like financial services and insurance.
Blackstone & Vista Take Smartsheet Private for $8.4 Billion💻
On January 22, 2025, private equity giants Blackstone and Vista Equity Partners completed an $8.4 billion acquisition of Smartsheet, a leading enterprise work management platform serving 85% of the 2024 Fortune 500. Smartsheet has now delisted from the NYSE, allowing it to focus on long-term strategic growth.
Valuable Insights
Private equity doubles down on SaaS: Blackstone and Vista are prioritizing cash-flow-positive, high-retention SaaS, and Smartsheet’s ARR strength made it an ideal target.
Going private = Strategic freedom: Without quarterly earnings pressure, Smartsheet can accelerate AI-driven automation, pursue acquisitions, and expand globally.
AI is reshaping productivity software: Investment in productivity AI signals that automation, workflow orchestration, and data-driven collaboration remain top priorities for enterprises.
LBO playbook in motion: Expect cost optimizations, new pricing strategies, and potential bolt-on acquisitions before an eventual resale or IPO.
Why It Matters for Latin America
These deals signal key shifts that will shape opportunities for LatAm tech founders, investors, and corporations:
AI-driven SaaS is in demand: The scale of these transactions highlights investor interest in the sector.
Vertical-specific solutions gain traction: Harvey's success in legal tech highlights opportunities for LatAm founders to build AI solutions for region-specific regulated industries, like in Brazil's tax system and Mexican fintech compliance.
PE appetite signals exit opportunities: Smartsheet's acquisition by Blackstone and Vista indicates that well-executed SaaS platforms in Latin America could attract major PE buyers.
The Big Debate: AI vs. SaaS🏅
This week, we’re looking at two major deals—one in AI-driven legal tech and another in enterprise SaaS. So, what does this mean for SaaS as a whole? We’re keeping a close eye on the growing debate:
Is AI making SaaS less relevant? Traditional SaaS relies on subscriptions, but AI-powered enterprise tools are moving toward usage-based pricing. Will that force a shift in how software businesses scale?
Who are AI’s biggest rivals? While platforms like ChatGPT and Claude offer broad AI capabilities, sector-focused AI like Harvey is proving more defensible and scalable. Are we heading toward AI consolidation or a specialized AI ecosystem?
👀We’ll be following this closely—expect more insights soon.
Want More Details?
📖 Harvey: Raises $300M Series D Led by Sequoia
📌 Blackstone and Vista Equity Partners Close $8.4B Smartsheet Acquisition
Something to Get You Thinking 💭
"Our industry does not respect tradition. It only respects innovation." – Satya Nadella
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