Clio announces US $900M investment at US $3B valuation to transform the legal experience for all
NEA-led investment, the largest transaction ever in cloud legal technology, includes participation from Goldman Sachs Asset Management, Sixth Street Growth, CapitalG, and Tidemark
- New Enterprise Associates (NEA) leads Clio's Series F funding round with a US $500M+ equity investment, along with participation from Goldman Sachs Asset Management, Sixth Street Growth, CapitalG, and Tidemark
- This marks the largest capital raise and equity value for cloud legal software ever, and a top five largest capital raise for a vertical market software company in history
- Marking a new era in its growth journey, Clio will advance its industry-leading operating system for the legal sector and deepen its global market presence
NEW YORK, July 23, 2024 /PRNewswire/ -- Clio, the global leader in legal technology, announced it has raised US $900 million, based on a US $3 billion valuation, in a Series F investment round led by New Enterprise Associates (NEA). The round also includes new partners Goldman Sachs Asset Management, Sixth Street Growth, CapitalG, and Tidemark, who join current investors TCV, JMI Equity, funds and accounts advised by T. Rowe Price Associates, Inc. and by T. Rowe Price Investment Management, Inc., respectively, and OMERS. Marking a new era in its growth journey, Clio will continue to expand its multi-product platform, including further investments in its burgeoning AI portfolio and integrated legal payments. It will also accelerate its rapid market expansion upmarket and internationally, deepening its organic growth to more than 130 countries across the globe.
For 16 years, Clio has been at the forefront of creating innovative, cloud-based solutions tailored to the unique needs of the legal industry. Clio is the operating system for law firms, powering every aspect of the legal process. It simplifies law firm management by centralizing client intake, case management, document management, legal payments, and more. With more than 250+ legal technology software integrations, Clio is also the world's largest legal technology platform, endorsed by more than 100 law societies and bar associations worldwide, including all 50 state bar associations in the United States.
"This historic raise was heavily oversubscribed, further demonstrating the overwhelming demand and confidence in Clio's future," said Jack Newton, CEO and Founder of Clio. "I'm thrilled to embark on this journey with NEA and our group of exceptional investors. 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."
Tony Florence, Co-CEO at NEA, has joined Clio's Board of Directors. Mr. Florence commented, "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. 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."
Clio raised its Series E funding in April 2021, a US $110M growth equity round. Since then, Clio has grown its revenue beyond US $200M ARR and has expanded internationally to the APAC region, as well as upmarket to become the leader in mid-market cloud legal practice management software, serving more than 1,000 mid-sized firms in the United States alone. Clio's all-in-one payments business has skyrocketed since its launch in 2022, now processing billions of dollars annually in legal-specific transactions. Additionally, Clio's platform has been expanded to include:
- Clio Duo proprietary generative AI solution to help lawyers complete routine tasks, and leverage their firm analytics to run a more efficient practice; including audit log functionality for court discovery (available in 2024)
- Clio Accounting to manage firm finances in one system of record, designed to help keep law firms compliant
- Module for personal injury lawyers with distinct litigation needs, and procedures for medical recordkeeping, this add-on offers rapid settlement estimates for high volume case assessments
- Clio Draft intelligent document automation and court form libraries in 50+ jurisdictions
- Electronic court filing services available directly in Clio to streamline court interactions
- Legal Aid and nonprofit grant billing models, eligibility calculators, and dashboards
- 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," continued Newton. "AI is ushering in an exciting and important new era for legaltech, 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."
Clio has more than 1,100 employees located across hub locations in North America, EMEA, and APAC regions. The company is actively hiring across all areas of its business including product, R&D, sales, marketing, and customer success.
Law firms Osler, Hoskin & Harcourt LLP and Wilson Sonsini Goodrich & Rosati served as legal counsel to Clio. William Blair acted as Clio's exclusive financial advisor.
For more information, please visit clio.com.
About Clio
Since its inception in 2008, Clio has revolutionized the landscape of legal technology, emerging as the undisputed leader of innovation and integration. By offering advanced yet intuitive legal software, Clio has redefined efficiency and client service, setting the standard for legal professionals across the globe. With an unwavering commitment to groundbreaking innovation and customer success, Clio stands as the preeminent authority in legaltech, continuously pushing the boundaries of the sector's evolution. Explore the future of legal technology with Clio at www.clio.com.
About NEA
New Enterprise Associates, Inc. (NEA) is a global investment firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors, and geographies. Founded in 1977, NEA has over $25 billion in assets under management as of December 31, 2023, and invests in technology and healthcare companies at all stages in a company's lifecycle, from seed stage through IPO. The firm's long track record of investing includes more than 270 portfolio company IPOs and more than 450 mergers and acquisitions.
NEA's dedicated $3.2 billion growth fund aims to back high-growth, market-leading companies generating over $25 to $50 million in revenue. NEA's growth investing practice has a flexible mandate, can invest $50 to $300 million or more, and seeks to tailor transactions to align with a company's long-term goals, including minority investments to fuel growth, majority buyouts, recapitalizations, and more.
For more information, please visit www.nea.com.
Media contact: Pamela Smith, media@clio.com, 1-800-347-8314
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