Clio, the cloud-based legal technology company that helps lawyers manage their firms, has raised a $330 million CAD ($250 million USD) Series D from US-based investors, TCV and JMI Equity.
“It’s clear something needs to change when the majority of legal problems don’t receive legal assistance.”
– Jack Newton, co-founder and CEO
A growth equity firm, JMI Equity is focused on investing in leading software companies, while TCV is an investment firm that provides growth-stage capital. The two firms have previously partnered for deals that include Netflix, Airbnb, Facebook, PointClickCare, and Spotify. According to The Globe and Mail, with the $330 million investment, the two firms have received a minority equity stake in Clio, though it was not disclosed how much of the capital will go towards buying out existing shareholders.
The Series D funding round marks the largest growth stage investment in a Canadian company since 2000. Clio also called the round one of the largest ever for a legal tech company. The $330 million surpasses Sonder’s $274 million CAD ($210 million USD) Series D funding round, earlier this year, which at the time marked one of the largest rounds in Canadian tech history.
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“Clio is not only solving some of the biggest pain points for the legal profession, it is 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.
Clio was founded in 2008 by lifelong friends Jack Newton and Rian Gauvreau, who developed the idea for a legal tech SaaS company after speaking with the Law Society of British Columbia about the struggles independent lawyers and small firms face running their businesses. The Burnaby-based company’s goal is to revolutionize “expensive, outdated on-premise solutions” with cloud technology that makes it easier for lawyers to manage firms, cases, and clients.
With this Series D investment, Clio said it hopes to “transform the practice of law, for good, by creating cloud-based solutions designed to help law firms deliver client-centered experiences and make legal services more widely accessible.” The company also plans to further develop its current offerings, while also creating more tools to help legal professionals make their businesses more efficient and sustainable.
“It’s clear something needs to change when the majority of legal problems don’t receive legal assistance,” said Newton, Clio’s CEO and co-founder. “To assist lawyers in bridging that gap, we intend to completely redefine the way legal services are delivered, and democratize access to legal assistance by way of the cloud over the next decade. This is a monumental moment for us and the Canadian tech scene. More than that, this investment allows us to continually reimagine what’s possible for the future of legal services and that’s an exciting moment for all.”
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The current funding round brings Clio’s total funding to date to more than $367 million CAD. With a $6 million USD round closed in 2012, the company also raised a $20 million USD Series C led by Bessemer Venture Partners, with participation from Acton Capital Partners, Point Nine Capital, and Version One Ventures, in 2014. The funding rounds were followed by Clio opening offices in Dublin, Calgary, Toronto, and Los Angeles. Clio was also named to Deloitte’s list of fastest-growing Canadian tech companies in 2015 and 2016.
The legal tech company currently serves 150,000 customers spanning 100 countries and has the approval of over 66 bar associations and law societies around the world. Clio stated that it plans to remain Canadian owned and keep its headquarters in the Vancouver area.
As part of the investment Matt Emery, general partner at JMI Equity has joined Clio’s board of directors. Mark Britton, a former Expedia executive and founder of legal marketplace Avvo.com and current principal at Brolawa LLC, will also be joining Clio’s board of directors.
Image courtesy Clio