Home Web-first software company Clio announces $900 million investment
Practical Techniques
Software company Clio announces $900 million investment
July 23, 2024, 3:05 PM CST
Clio, a cloud-based practice management software company, raised $900 million in a Series F round, the largest single investment in legal tech to date. (Image via Shutterstock)
Clio, a cloud-based practice management software company, raised $900 million in a Series F round, one of the largest single investments in legal tech to date.
The Canadian software company is valued at $3 billion, nearly double the $1.6 billion valuation it received in 2021, TechCrunch and Law360 reported. Since 2008, when Clio was conceived, the company has raised nearly $1.3 billion.
“We are pioneering this future for our clients, driven by our mission to transform the legal experience for all. Our commitment to delivering unparalleled value drives every decision we make, and we are inspired by the tremendous opportunity ahead,” Clio co-founder and CEO Jack Newton said in a statement.
With the new funding round, Clio plans to expand its global footprint and make its solutions available to more global law firms. The company’s platform includes practice management, client relationship management and client onboarding software.
The company began offering generative artificial intelligence tools in 2023 and has focused on integrating payments into legal-focused transactions. According to Clio’s 2024 Mid-Size Law Firm Legal Trends Report, average lawyers at mid-size firms are earning more than ever before. Mid-size firms are generating roughly 60% more billable hours than they did in 2016. However, despite the increase in billable hours, they still struggle to bill and collect.
Clio’s new cash flow metric, Lockup, introduced earlier this year, seeks to solve this problem by supporting online payments, customer-facing apps and consolidated billing. And while the report found that the average collections lockup for mid-sized businesses is 52 days, Clio Payments reduces realized lockup by 2 days, collections lockup by 6 days and total lockup by 13 days.
“Legal professionals who use Clio will continue to enjoy added benefits from partnering with the world’s leading legal technology provider,” Newton said in a blog post.
Those benefits include enhancements to Clio Manage, Clio Grow, Clio Draft and Clio Payment, as well as the release of a dedicated module for personal injury firms, he said. Clio Duo, a new generative AI solution aimed at helping lawyers with their day-to-day work, will also be released.
The round was led by New Enterprise Associates, with other investors including Goldman Sachs Asset Management, Sixth Street Growth, Tidemark and CapitalG contributing more than $500 million.
