Software company Clio announces $900M investment
Clio, a cloud-based practice management software company, has clinched $900 million in a Series F round—one of the largest single investments in legal technology to date. (Image from Shutterstock)
Clio, a cloud-based practice management software company, has clinched $900 million in a Series F round—one of the largest single investments in legal technology to date.
The Canadian software company is valued at $3 billion, which is almost double the $1.6 billion valuation that it received in 2021, TechCrunch and Law360 report. It has raised nearly $1.3 billion since 2008, when Clio was conceived.
“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,” said Jack Newton, the co-founder and CEO of Clio in a statement.
With the new funding round, Clio plans on expanding its global footprint, making its solutions accessible to more global law firms. Its platform includes practice management, customer relationship management and client intake software.
It began offering generative artificial intelligence tools in 2023 and has been focusing on integrating payments in legal-specific deals. According to Clio’s 2024 Legal Trends for Mid-Sized Law Firms report, the average lawyer in a midsize firm is earning more than they did previously. Midsize firms are capturing about 60% more billable hours than they did in 2016. Despite the increase in billable hours, though, they’re still struggling with billing and collection.
Lockup, Clio’s new cash-flow metric introduced earlier this year, attempts to solve this issue by helping with online payments, client-facing apps and bulk billing. And while the median collection lockup is 52 days for midsize firms, Clio Payments reduces realization lockup by two days, reduces collection lockup by six days, and reduces total lockup by 13 days, according to the report.
“If you’re a legal professional who uses Clio, you’ll continue to see more benefits from partnering with the world’s leading legal technology provider,” Newton said in a blog post.
These benefits, he said, include enhancing the features of Clio Manage, Clio Grow, Clio Draft and Clio Payment—in addition to launching a dedicated module for personal injury firms. Clio Duo, a new generative AI solution aimed at helping attorneys with routine tasks, is also being launched.
Leading this round was an investment of over $500 million by New Enterprise Associates, along with investors Goldman Sachs Asset Management, Sixth Street Growth, Tidemark and CapitalG, among others.
