Clio Secures Impressive $900M Funding Round to Drive AI Innovations in Legal Software

Clio Raises $900 Million to Transform Legal Tech with AI

Clio, a Canadian legal software firm celebrating 16 years of innovation, announced today it has secured $900 million in a Series F funding round. This investment was spearheaded by New Enterprise Associates (NEA) and brings the company's valuation to $3 billion, making it the largest transaction in the cloud legal technology sector. Clio plans to utilize this funding to enhance its technology with AI and expand its reach to new markets. Currently, Clio serves over 150,000 users across more than 130 countries, with the majority based in the U.S.

“We’re able to dramatically simplify workflows and unify them into one system,” said Clio’s CEO and Founder, Jack Newton, in a media interview. “We provide law firms with a centralized, secure system of record that they can rely on as their source of truth.”

The Series F round attracted investments from Goldman Sachs Asset Management, Sixth Street Growth, CapitalG, and Tidemark, alongside existing stakeholders such as TCV and JMI Equity.

Innovating with AI and Integrated Solutions

Clio is prioritizing investments in AI and integrated legal payment solutions. The company recently unveiled Clio Duo, a generative AI tool designed to help lawyers streamline routine tasks and enhance practice management through analytics. Clio Duo also includes audit log functionality for court discovery to improve legal operations.

“We’re fully committed to AI,” Newton emphasized. “We’re integrating it across various parts of our product. Our investment in AI started over a year and a half ago and was catalyzed by the launch of ChatGPT in November 2022, which sparked a surge of interest among our customers.”

Newton acknowledged concerns about AI potentially replacing lawyers but emphasized that AI is intended to amplify their productivity and address the existing "justice gap," where 77% of legal issues go unaddressed. He believes AI can enable lawyers to serve underserved populations effectively.

Additionally, Clio offers Clio Accounting for firm finances and a specialized module for personal injury lawyers to provide rapid settlement estimates. The platform also boasts Clio Draft for intelligent document automation and electronic court filing services.

Commitment to Security

With the legal sector's inherent need for confidentiality, security remains a top priority for Clio. Following recent challenges with cloud service outages, concerns about reliance on external providers have escalated. However, Newton reassures users of Clio's robust commitment to security.

“We’ve invested significantly in security and compliance, operating a dedicated security team that outmatches many of our competitors,” Newton stated. “This allows us to provide assurance to our HIPAA-regulated customers.”

A Remarkable Growth Trajectory

Since its Series E funding in April 2021, which raised $110 million, Clio has achieved remarkable growth, exceeding $200 million in annual recurring revenue (ARR) and expanding into the APAC region. The launch of its payments business in 2022 now processes billions of dollars annually in legal transactions. Clio's workforce has also grown to over 1,100 employees, reinforcing its commitment to product development, R&D, and customer success.

Innovating Since 2008

Clio has significantly impacted the legal technology landscape since its founding in 2008. Aiming to empower solo practitioners and small law firms, founders Jack Newton and Rian Gauvreau transitioned legal practice to the cloud. Clio has hosted 10 Clio Cloud Conferences, presented 32 Reisman Awards, and published seven Legal Trends Reports. It is endorsed by over 100 bar associations and law societies and provides free software to more than 55,000 users at over 200 educational institutions through its Academic Access Program.