Clio Gets $250 Million for Cloud-Based Legal Solutions
Company aims to make law firms easier to run and more accessible
Legal software vendor Clio is getting a $250 million infusion to build out cloud-based technology solutions aimed at making managing modern law firms easier and more profitable.
The Lowdown: The Series D funding came from investment firms TCV and JMI Equity, which have backed such well-known companies as Facebook, Airbnb, Spotify, Netflix, Expedia, and ServiceNow.
The Details: The $250 million is almost 10 times more than the $26 million that Vancouver, Canada-based Clio had raised in two rounds of funding during its first 10 years. That money was focused on bringing cloud technology to legal firms that had been using on-premises solutions that were beyond the reach of most lawyers. The new money will be used to create cloud-based offerings that enable law firms to better deliver client services and make them more widely accessible.
Clio offers a number of solutions, including Clio Manage, software for law firms to help them manage cases, contacts, documents, and online payments, as well as do billing and time and expenses. Clio Growth includes customer relationship management (CRM) capabilities – including client intake and management – and document and workflow automation, e-signatures, and reporting. Clio Suite includes all of the company’s capabilities.
The Impact: The investment in Clio is another example of leveraging modern technologies and models like cloud computing and analytics to solve problems in particular verticals. Clio co-founder and CEO Jack Newton noted that 84% of legal professionals have told Clio that increasing revenue is important, but that according to the World Justice Project, 77% of legal problems get no legal assistance.
Clio’s goal is to close that gap by creating cloud-based solutions that will enable law firms to offer current and prospective clients services that are available via the same technology they use every day to interact with other people and organizations.
Background: Clio, which has offices in Canada, Los Angeles, and Dublin, Ireland, is not alone in trying to address challenges in the legal field. IBM earlier this year announced a collaborative partnership with law firms in the United States and United Kingdom to create tools leveraging artificial intelligence (AI) to automate legal services.
The Buzz: “Over three-quarters of legal problems don’t receive legal assistance, yet lawyers are struggling to find new clients — it’s clear that something in the system is broken,” Clio co-founder and CEO Newton said. “Clio is committed to building the essential operating system for lawyers, one that focuses relentlessly on unlocking new efficiencies and entry points to legal services. This will allow legal professionals to easily deliver exceptional client experiences, increase their productivity, grow their firms, and make legal services more accessible. This investment from experienced growth software investors will accelerate our ability to realize this vision.”
“Clio has had long-standing success in transforming a vast industry that has been lagging in technology adoption, and we’re confident the company will continue to lead on a global scale,” said Jake Reynolds, general partner at TCV. “We’re committed to supporting Clio with TCV’s resources and network in order to help them capitalize on their significant growth opportunities.”
“Clio is not only solving some of the biggest pain points for the legal profession, it’s creating a platform for the future of legal services, and we look forward to partnering with the team in the company’s continued growth and success,” said Sureel Sheth, principal at JMI.
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