At a Glance
Clio, a cloud-based software company that makes law firms operate more effectively, has raised $110 million in a Series E round led by T. Rowe Price Associates Inc. and OMERS Growth Equity. This round of funding elevates the firm to unicorn status, with its evaluation at $1.6 billion.
The British Columbia-based firm claims to be the world’s “first legal profession management unicorn” thanks to the new investment. The investment takes the cumulative amount earned since the company’s founding in 2008 to $386 million. Their most recent funding was in September this year where they raised $250 million in a Series D round.
Jack Newton, CEO, and Co-founder said that he launched Clio and Rian Gauvreau during the 2008 recession after seeing the difficulties faced by solo attorneys and small law firms in operating their businesses.
According to Newton, Legal practice management software has been traditionally limited to server-based applications tailored for enterprises, not independent law firms. Clio was established to bring about a change.
“Similar to how Microsoft Windows defined the operating system for personal computers decades ago, Clio has developed a software platform for law firms and their clients that is cloud-based and client-centric by design.”
The company’s platform, which includes cloud-based legal practice administration, customer intake, and legal CRM tools, seeks to operate as an “operating system” for lawyers. Clio has over 150,000 users in more than 100 countries. Even though small and individual attorneys use Clio, Clio still works for more prominent companies like Locks Law and King Law.
Talking about the impact of the pandemic, Newton stressed,
“Many firms realized that storing client data at the office was no longer an option as teams became distributed during COVID-19.” He added, “Lawyers and legal professionals who had hesitated to adopt technology in the past were suddenly forced to adapt to this new reality rapidly. While this technological change is in response to the crisis, it’s an enduring change.”
Clio, which currently has 600 employees, intends to make some recruiting decisions. It plans to increase its workforce by 40%, or 250 people, emphasizing strengthening its product and innovation departments.
Mark Shulgin, OMERS Growth Equity managing director, said in a written statement that his company has been following Clio for quite some years.
He said, “We believe Clio has clearly established itself as a market-leading legal tech firm and will deliver growth for decades to come.”