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Clio secures US$900m investment following US$3bn valuation
Based on a US$3 billion valuation, Clio has raised US$900 million in a series F investment round, led by New Enterprise Associates (NEA), in a move it says marks the largest capital raise and equity value for cloud legal software ever.
Lauren Croft
In what is a top five largest capital raise for a vertical market software company in history, Clio, the world’s largest legal technology platform, has raised US$900 million in its latest investment round.
The CEO and founder of Clio, Jack Newton, said this marks a new era in the company’s growth journey. Clio will continue to expand its multi-product platform and accelerate its rapid market expansion upmarket and internationally.
“This historic raise was heavily oversubscribed, further demonstrating the overwhelming demand and confidence in Clio’s future. I’m thrilled to embark on this journey with NEA and our group of exceptional investors,” Newton said.
“The Clio operating system is the undisputed platform of the legal technology sector, engineered to not only meet but anticipate future industry demands. We are pioneering this future for our customers, driven by our mission to transform the legal experience for all. Our commitment to delivering unparalleled value propels every decision we make, and we are inspired by the massive opportunities ahead.”
NEA co-CEO Tony Florence has also joined Clio’s board of directors.
“Clio embodies everything NEA looks for in a growth-stage investment: an exceptional, purpose-driven team, market and product leadership, and stellar business physics. Clio is mission critical to law firms, and the company’s best-in-class retention and NPS are testaments to the team’s ability to continuously innovate, deliver immense value, and meet the dynamic needs of the legal sector,” he said.
“With the right foundation in place for continued market expansion and advanced AI capabilities, we believe the best is yet to come. We look forward to applying NEA’s company-building expertise to partner with Jack and the Clio team on their next phase of growth.”
Since its series E funding round in April 2021, which raised US$110 million, Clio has grown its revenue above US$200 million and expanded internationally to the Asia-Pacific region.
Additionally, Clio’s platform has been expanded to include a proprietary generative AI solution to help lawyers complete routine tasks, an accounting offering to manage firms’ finances and keep them compliant, a module for personal injury lawyers, Legal Aid and non-profit grant billing models, intelligent document automation, electronic court filing services and Google Local Service Ads directly embedded in the Clio platform to generate, screen, and intake local leads.
“While we’re immensely proud of our growth to date, the real opportunity lies ahead of us,” Newton said.
“AI is ushering in an exciting and important new era for legal tech, and Clio is leading that transformation. There’s much to accomplish for the success of our customers so they can thrive in an economy that embraces technology in every interaction.”
Lauren Croft
Lauren is a journalist at Lawyers Weekly and graduated with a Bachelor of Journalism from Macleay College. Prior to joining Lawyers Weekly, she worked as a trade journalist for media and travel industry publications and Travel Weekly. Originally born in England, Lauren enjoys trying new bars and restaurants, attending music festivals and travelling. She is also a keen snowboarder and pre-pandemic, spent a season living in a French ski resort.
