First Legal Practice Unicorn Worldwide
The latest funding takes Clio’s valuation to the unicorn territory at $1.6 billion. Before this, the legal company raised $250 million in a Series D round in September 2019. Clio said it is now the “first legal practice management unicorn” in the world, with the $386 million raised in total funding so far.
“This investment is indicative of the explosive demand for legal technology that empowers lawyers to be cloud-based and client-centered,” said Clio’s founder and CEO, Jack Newton.
“The support from T. Rowe Price funds and accounts and OMERS Growth Equity will enable us to continue to create a more equitable and accessible legal system by making it easier for clients and law firms to work together through cloud-based technologies.”
Clio developed a platform that serves as an operating system for lawyers, providing them with cloud law practice management tools, client intake, and CRM software. The company counts over 150,000 business customers from 100 countries, many of which are smaller lawyers and solo practitioners. However, Clio also collaborates with major businesses like Locks Law and King Law.
The company helps lawyers increase productivity, expand their business growth and make legal services more accessible. Additionally, Clio helps business clients find lawyers more easily and the other way around.
Without disclosing specifics, Newton said Clio’s business growth since its last funding round in 2019 has been “explosive,” which was helped by the COVID-19 pandemic and an accelerating shift to digital operations. He views the company’s current valuation as “fair.”
Clio’s cloud technology and business product list grew in an industry that has always relied on pen and paper. The company said it also hopes to make legal technology more affordable to lawyers. The COVID-19 pandemic has prompted lawyers to change the way they manage their companies, the chief executive notes.
“Many firms realized that storing client data at the office was no longer an option as teams became distributed during COVID-19. Lawyers and legal professionals who had hesitated to adopt technology in the past were suddenly forced to rapidly adapt to this new reality. While this technological change is in response to the crisis, it’s an enduring change.”
Clio will use the fresh capital to make new business acquisitions and partnerships, as well as to further enhance its platforms. The company’s first acquisitions came in 2018 when it bought legal tech startup Lexicata.
Clio currently has 600 employees and wants to increase that figure by around 40%, particularly in the product and engineering departments. Clio is currently focused on bolstering growth in the United Kingdom (UK) and Ireland.
Legal cloud business Clio secured $110 million in a Series E round, reaching a valuation of $1.6 billion and becoming a unicorn. The latest funding round was co-led by T. Rowe Price Associates and OMERS Growth Equity, with the company intending to use proceeds to make new acquisitions and partnerships.