(Bloomberg) --Legal software provider Clio clinched a US$3 billion valuation in a funding round that brings in Goldman Sachs Asset Management and Alphabet Inc.’s venture arm as new investors.
Headquartered in a suburb of Vancouver, the company raised $900 million in a Series F round led by venture capital firm New Enterprise Associates, according to a statement Tuesday. New Enterprise Co-CEO Tony Florence has joined Clio’s board.
Clio’s cloud software helps lawyers manage their practices by automating processes such as client intake, accounting and document management. The company, which has more than 1,100 employees, plans to use the money to expand its current AI portfolio and legal payment technology and to grow internationally to more than 130 countries.
“This historic raise was heavily oversubscribed, further demonstrating the overwhelming demand and confidence in Clio’s future,” Jack Newton, its founder and chief executive officer, said in the statement. The company billed it as the largest transaction ever in cloud legal technology.
The software firm, operates as Clio but has a corporate name of Themis Solutions Inc., said it has gained momentum since raising $110 million in a previous round in April 2021 at a $1.6 billion valuation.
“We saw growth just explode over the course of the last two years,” Newton said in an interview on BNN Bloomberg Television, leading to a near-doubling of the valuation.
Newton praised Canada’s innovation ecosystem and its research capabilities, while cautioning that the federal government’s decision to increase the capital-gains tax on businesses is poised to have a “cooling effect” on investment.
“With the right kind of policies at the government level, we can really help establish a world-leading culture and economy around innovation,” Newton said. “We’ve got the right to win on AI.”
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