Editor’s Note: While not directly tracked as part of the eDiscovery ecosystem, Clio’s announced investment of $250 million from TCV and JMI Equity will undoubtedly indirectly impact the eDiscovery software market and potentially directly impact that market as the company seeks to solve some of the biggest pain points for the legal profession.
Cloud Technology Leader Clio Announces $250 Million Investment from TCV and JMI to Transform the Legal Industry
Clio, the leader in cloud-based legal technology, announced today [September 4, 2019] it has raised US$250 million in Series D funding from TCV and JMI Equity. This growth investment marks one of the largest in legal technology, the largest in Canadian history, and a definitive shift for the future of the legal industry.
According to the US Census data, Americans spent US$261 billion on legal services in 2012. Yet, 77% of legal problems don’t receive legal assistance, according to the World Justice Project.
“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,” said Jack Newton, CEO and Co-founder of Clio. “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’s first 10 years, and its two rounds of funding to date, totaling US$26 million, focused on bringing cloud technology to law firms—a revolutionary step forward from the expensive, outdated, on-premise solutions that were out of reach for most lawyers. With this growth investment, Clio will work 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.
“At TCV, we partner with innovative companies that are leaders in their industry and offer superior value propositions for their customers,” said Amol Helekar, Principal at TCV, and a member of Clio’s board of directors. “Clio has had long-standing success in transforming a vast industry that has been lagging in technology adoption and we are confident the company will continue to lead on a global scale. We are committed to supporting Clio with TCV’s resources and network in order to help them capitalize on their significant growth opportunities,” added Jake Reynolds, General Partner at TCV.
TCV and JMI have been investment partners to innovative technology companies such as Adaptive Insights, Airbnb, Eloqua, Expedia, Facebook, Netflix, PointClickCare, ServiceNow, and Spotify, and have helped these businesses achieve their growth objectives.
“We believe the legal software space presents significant opportunities for continued disruption, and Clio is the clear leader,” said Matt Emery, General Partner at JMI Equity who has joined Clio’s board of directors. “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,” added Sureel Sheth, Principal at JMI.
Clio’s customers can expect to see ongoing investment in the depth and breadth of Clio’s offerings, with even more powerful and flexible tools for legal professionals to manage and grow their practices, making them more efficient and sustainable as businesses. Mark Britton, former Expedia executive and founder of legal marketplace Avvo.com, will be joining Clio’s board of directors to provide his own industry experience as the company brings its vision for the future of legal to market.
Raymond James served as a buyside financial advisor to TCV for this investment.
Clio (Themis Solutions Inc.), the leader in cloud-based legal technology, empowers lawyers to be both client-centered and firm focused through a suite of cloud-based solutions, including legal practice management, client intake and legal CRM software. Clio has been transforming the industry for over a decade with 150,000 customers spanning 100 countries, and the approval of over 66 bar associations and law societies globally. Clio continues to lead the industry with initiatives like the Legal Trends Report, the Clio Cloud Conference, and the Clio Academic Access Program. Clio has been recognized as one of Canada’s Best Managed Companies, a Deloitte Fast 50 and Fast 500 company, and, most recently, Company of the Year, Anchor Success by the British Columbia Tech Association. Learn more at clio.com.
Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. TCV has invested over $12 billion in leading technology companies and has helped guide CEOs through more than 120 IPOs and strategic acquisitions.
TCV’s software and legal technology investments include Alarm.com, Altiris, Ariba, Avalara, Avetta, Avvo, AxiomSL, CCC Information Services, ExactTarget, ETQ, FinancialForce, Genesys, IQMS, LegalZoom, OpenText, OSIsoft, Rapid7, Rave Mobile Safety, RELEX Solutions, Sitecore, SiteMinder, SMT, Splunk, Toast, Xero, and more. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, please visit tcv.com.
About JMI Equity
JMI Equity is a growth equity firm focused on investing in leading software companies. Founded in 1992, JMI has invested in over 145 businesses in its target markets, successfully completed over 95 exits and raised more than $4 billion of committed capital. JMI partners with exceptional management teams to help build their companies into industry leaders. For more information visit jmi.com.
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