Law firm SaaS company Clio raises $110 million, reaches "unicorn" status
The Canadian startup had seen explosive growth amid the pandemic
Legal technology company Clio has raised $110 million in a new funding round led by T. Rowe Price Investment Management and OMERS Growth Equity, bringing its valuation to $1.6 billion.
Clio envisions its software platform as an "operating system" for law firms providing cloud-based legal practice management software, client intake, and customer relationship management (CRM) services.
The Vancouver, British Columbia-based firm raised $250 million in a Series D round led by TCV and JMI Equity in September 2019. Clio has increased its valuation and risen to unicorn status with the latest funding. The total capital raised since the company's inception in 2008 now totals $386 million. The firm plans to use its new capital to continue investing in its platform and for strategic partnerships.
For years, legal administration software has been limited to server-based software for large firms — not small law firms, according to Jack Newton, Clio founder and CEO.
According to Newton, his SaaS makes it easier for attorneys to be more productive, develop their practices, and make legal services more accessible. Clio also makes it easier for consumers to find legal professionals.
In response to the pandemic’s impact on growth, Newton noted Clio has experienced explosive development since 2019. Though change has been slow, Newton explained COVID-19 forced legal professionals to reevaluate how they administer their law firms and deliver legal services to their clients.
“Many firms realized that storing client data at the office was no longer an option as teams became distributed during COVID-19. Lawyers and legal professionals who had hesitated to adopt technology in the past were suddenly forced to rapidly adapt to this new reality. While this technological change is in response to the crisis, it’s an enduring change,” stated Newton.
EMEA markets are growing for Clio, especially in the United Kingdom and Ireland. Providing details on Clio's hiring plans, Newton said Clio plans to attract around 250 new employees, with a focus on developing its product and engineering teams.
OMERS Growth Equity managing director, Mark Shulgan, stated, “We believe Clio has clearly established itself as a market-leading legal tech firm, and will deliver growth for decades to come.”
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