This investment establishes Clio as the first legal practice management unicorn globally.
Clio, the leader in cloud-based legal technology, announced a new valuation of US$1.6B after raising US$110M in its Series E. The funding round was led by funds and accounts advised by T. Rowe Price Associates, Inc. and also included OMERS Growth Equity. This growth investment signals a historic moment in the growth of legal technology, with Clio becoming the first legal practice management unicorn globally.
“This investment is indicative of the explosive demand for legal technology that empowers lawyers to be cloud-based and client-centered,” said Jack Newton, CEO and Founder of Clio. “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.”
The legal industry is in the midst of a swift and massive transformation to cloud technology due to the need for law firms to find new ways to deliver services to clients. Although these needs were brought on by the events of the past year, the move to digital-first law firms is a permanent one as consumer expectations and behaviors change.
To spearhead this new era of legal services, Clio will use the funding to further invest in its platform, strategic acquisitions, and partnerships aligned with the company’s mission to transform the legal experience for all. The funding will also expedite Clio’s plans to grow its workforce by 250 employees—an increase of 40 percent—in 2021, with a focus on bolstering its product and engineering teams to continue innovating and evolving its product offerings.
“We are excited to invest in Clio on behalf of our clients. Clio has significant growth opportunities given the company’s innovative product offerings and leading market position in the legaltech space. We look forward to collaborating with the team and working to accelerate the company’s efforts to improve technology offerings to the legal industry,” said Andrew Davis, Director of Private Investments at T. Rowe Price Associates, Inc.
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“OMERS Growth Equity is thrilled to become an investor in Clio. We have followed Clio for a number of years, and remain impressed by the continued ability of Jack Newton and his team to execute, innovate, and deliver an amazing experience to their customers. We believe Clio has clearly established itself as a market-leading legaltech firm, and will deliver growth for decades to come,” said Mark Shulgan, Managing Director and Head of OMERS Growth Equity.
Having secured US$6.6B across over 900 companies globally, legaltech is one of the fastest-growing sectors for investors. Funding has grown exponentially over the last few years, with total investments skyrocketing from US$1B to US$2.2B between 2018 and 2019. Clio’s 2019 Series D, led by TCV and JMI Equity, was an integral part of that growth as the largest investment in legaltech, accounting for over 20 percent of the entire industry’s funding. In 2021, that trajectory continues to soar, with Clio at the forefront.