Cooley LLP
Law firm that guides startups and VC funds from formation through IPO or sale.
On the record
Checkpoint: China tightens rules on offshore listing vehicles, a possible hit to Cooley's cross-border IPO pipeline
The call
Cooley keeps its lead in venture legal work through relationships and liability that AI tools cannot yet replace, while rivals and a shaky IPO market press on the edges.
Cooley LLP specializes in legal work for venture-backed startups, from formation documents to IPO preparation, and has built deep relationships with thousands of private companies over 60+ years. Competitors like Gunderson Dettmer and Wilson Sonsini also serve this market, and AI tools can now handle routine paperwork like NDAs and investment contracts faster and cheaper, which could erode Cooley's entry-level client connections. The real question is whether Cooley can shift clients toward higher-value legal work (like securities advice and IPO execution) fast enough to offset the commoditization of routine documents, while also weathering cyclical downturns when startups stop funding and going public.
Why
01
AI pressure: Legora-class legal-AI drafting platforms. AI drafts NDAs, SAFEs and diligence fast but can't sign off as bar-admitted counsel or carry the liability. Could AI do the core job? Unlikely.
02
Bigger players: Gunderson Dettmer and Wilson Sonsini. Both rivals post higher per-firm VC deal volume and revenue growth, squeezing Cooley's claim on startup formation work. Could a giant copy it? Probably.
03
What protects it. Regulatory liability that only bar-admitted lawyers can carry, plus decades-deep ties to 7,000+ private companies and 240+ public issuers.
What would change this call
Am Law 100 2027 report shows Cooley's FY2026 revenue growth versus Gunderson Dettmer and Wilson Sonsini. Would show whether rivals are actually taking VC-deal share or Cooley keeps leading.
PitchBook's 2026 venture-law-firm ranking (published ~March 2027). Would show if Cooley keeps its 6-year #1 spot for venture-backed company representation.
Adoption rate of Cooley GO Lab after its June 2026 broader rollout beyond YC. Would show if Cooley's owned distribution channel is holding startups against AI-native entrants.
PitchBook's 2026 venture-law-firm ranking (published ~March 2027). Would show if Cooley keeps its 6-year #1 spot for venture-backed company representation.
Adoption rate of Cooley GO Lab after its June 2026 broader rollout beyond YC. Would show if Cooley's owned distribution channel is holding startups against AI-native entrants.
Key numbers
- FY2025 revenue $2.4B, up 10.3% year over year
- Profits per equity partner hit $4.57M, up 18.3%
- Ranked #1 for VC-backed company deals, 6th year running
Named risks
- Revenue tied to fragile 2026 IPO market window, only 8 of 27 tech IPOs trading above offer.
- Stricter Chinese scrutiny of offshore listing vehicles could shrink tech and biotech IPO pipeline.
- AI commoditization of templated startup formation docs could compress margins on volume work.
- Cyclical boom-bust hiring exposed firm to 150 layoffs in 2022 during demand slowdown.
- Public litigation role against Trump administration law firm sanctions could affect recruiting or profile.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Gunderson Dettmer | contesting | #1 VC deal volume for 12 straight years through 2025 vs Cooley's #1 venture-backed company rank |
| Wilson Sonsini | contesting | ~$1.43B revenue in 2024 and #1 company-side venture rounds ranking in 2025 |
| Fenwick & West | gaining on | Posted 19% profit growth in 2025 amid renewed tech-sector activity |
| Kirkland & Ellis | losing to | $8.8B 2024 revenue dwarfs Cooley's ~$2.4B, though not a direct VC-boutique competitor |
| Legora-class legal-AI platforms | contesting | Cooley partnered with Legora for Cooley GO Lab launch in June 2026 rather than being displaced |
Questions people ask
- Is Cooley LLP profitable in 2025?
- Yes. Cooley reported profits per equity partner of $4.57 million in fiscal 2025, up 18.3% year over year, alongside record gross revenue of approximately $2.4 billion, up 10.3% from FY2024, according to Law.com reporting dated March 13, 2026.
- Who is Cooley LLP's biggest competitor?
- Gunderson Dettmer is Cooley's closest rival in venture-backed law, ranked #1 globally by PitchBook for VC deal volume for 12 straight years through 2025 and posting $567.5 million revenue, up 13% YoY, per an April 7, 2026 Gunderson report. Wilson Sonsini also contests the space.
- Could AI replace Cooley LLP's lawyers?
- Not entirely. AI is commoditizing templated work like NDAs, SAFEs and diligence, but bar-admission and liability rules block AI from practicing law or bearing risk. Cooley launched Cooley GO Lab with Legora in June 2026 to orchestrate AI rather than be replaced by it.
- Has Cooley LLP had layoffs recently?
- Cooley laid off 150 US employees, 78 lawyers and 72 staff, in late November 2022 amid a post-pandemic demand slowdown, per Bloomberg Law. Since then the firm has resumed growth, absorbing about 25 lawyers and staff from Willkie Farr's San Francisco office in June 2025.
- Is Cooley LLP a safe firm to join in 2026?
- Cooley posted record FY2025 revenue of roughly $2.4 billion, up 10.3% YoY, and has been actively hiring laterally, including a Willkie Farr team in June 2025 and former US Solicitor General Elizabeth Prelogar in August 2025, though the firm cut 150 jobs in 2022 during a downturn.
- Who owns Cooley LLP?
- Cooley LLP is a private limited liability partnership with no external investors or parent company, standard for large US law firms. It is led by CEO/Chair Rachel Proffitt and operates as a partner-owned firm, per Cooley's own site as of 2026.
Timeline
- 2026-06-23Cooley launches Cooley GO Lab, an AI workspace built with Legora, exclusive to YC Summer 2026 cohort
- 2026-03-13Cooley reports FY2025 record revenue of ~$2.4B, up 10.3% YoY, and PEP of $4.57M
- 2026-03-06Cooley named #1 firm for venture-backed company representation for sixth straight year
- 2026-03-02DOJ formally drops appeals in Jenner & Block v. DOJ case, which Cooley litigated
- 2025-10Cooley appears as merits counsel in four US Supreme Court cases
- 2025-08Cooley hires former US Solicitor General Elizabeth Prelogar, builds 18-lawyer SCOTUS group
- 2025-06Cooley absorbs ~25 lawyers and staff, including 7 partners, from Willkie Farr's SF office
- 2025-03-25Cooley reports FY2024 gross revenue of $2.15 billion
- 2022-11-30Cooley lays off 150 US employees, 78 lawyers and 72 staff
- 2014Cooley launches free Cooley GO self-service legal resource for startups
Revision history
23 July 2026
First assessed. Defensible for now. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Strong Corporate, Litigation Practices Led to Record Revenues at Cooley (2026-03-13)
- Cooley Continues Upward Trajectory as Revenue Hits $2.15B (2025-03-25)
- Cooley LLP, USA 2026
- Cooley Solidifies Market Leadership in Representing Venture-Backed Companies (2026-03-06)
- About Cooley // Cooley // Global Law Firm
- Cooley Lays Off 150 Attorneys and Staff Across US Offices (2022-11-30)
- Cooley Bets Big on Litigation, and So Far, It's Paying Off (2026-07-08)
- ACLU Comment on the Trump Administration Dropping Its Defense of Law Firm Sanctions (2026-03-02)
- Cooley Launches Cooley GO Lab, Powered by Legora, for Y Combinator Startups (2026-06-23)
- Gunderson Dettmer Reports 13% Revenue Growth... (2026-04-07)
- Wilson Sonsini · LSD.Law
- 'Outrunning the Bear,' Cooley Posts Revenue High Amid Head Count Decline (2024-03-13)