What I Learned About Fundraising: Clio’s Journey to a $1.24 Billion Series F.Jack Newton, CEO of Clio, reflects on the critical lessons learned during the company’s growth journey, particularly during its record-setting Series F round, which raised $1.24 billion CAD (approximately $900 million USD). As part of BetaKit’s “What I Learned” series, Newton shared valuable insights that helped guide Clio’s journey from a startup to one of Canada’s most successful tech companies.
Newton’s first lesson is a fundamental one: relationships are everything. He stresses that cultivating meaningful connections with investors is key to building a successful, sustainable business. Clio’s Series F raise was the culmination of years of preparation, which included carefully selecting the right investors. “You don’t want to be fundraising with a ‘cold start problem,’” he says, explaining that working with investors should be like entering a long-term partnership, akin to a marriage.As Newton points out, getting an investor off your cap table is far harder than getting a divorce.
The foundation of strong relationships with investors—built on trust, mutual understanding, and shared values—is essential. This is why Newton advises founders to take time to truly understand their investors before bringing them on board. He encourages entrepreneurs to conduct thorough back-channel referencing, similar to how one would vet an executive hire. “You have to talk to everybody,” he says, underscoring the importance of knowing who you’re working with.Despite the challenges of a volatile market—characterized by turbulent public markets, fluctuating interest rates, and uncertainty—Newton notes that there is still a high demand for high-quality companies.
For those who are growing quickly, efficiently, and sustainably, the amount of investor capital available is vast. Even in a shaky environment, “there’s a flight to quality,” he affirms.Clio’s success in raising $1.24 billion CAD in Series F is a testament to this principle. Newton reveals that the round was oversubscribed by nearly $750 million CAD, demonstrating that high-quality companies with strong growth profiles continue to attract significant investor interest. He credits much of this success to the caliber of investors who came on board, particularly Tony Florence at NEA, highlighting their integrity and strategic value.
Newton believes that the success of any startup—particularly those that scale rapidly—depends heavily on the relationships fostered within the company, both internally (between founders) and externally (with investors). He reflects that many failed startups can be traced back to breakdowns in relationships, whether between co-founders or between founders and investors. By investing in building solid, long-term relationships with investors, startups lay the groundwork for their future success.
Newton’s reflections offer a clear message: fostering meaningful, transparent relationships with investors is critical to navigating the fundraising process successfully. As Clio demonstrated with its $1.24 billion Series F raise, even in uncertain times, high-quality companies that focus on growth, efficiency, and sustainable business practices will continue to attract strong investor interest. Through smart relationship-building and strategic fundraising, Clio has been able to chart a path toward further success, expanding its reach and influence in the legal tech industry.
Jack Newton, CEO of Clio, reflects on the remarkable evolution of the legal tech company he co-founded in 2008 with Rian Gauvreau. Starting in the midst of the global financial crisis, Clio’s journey has been anything but easy. However, 16 years later, the company is thriving, and its success has been highlighted in unexpected ways, such as through a partnership with the NHL’s Vancouver Canucks.Newton shares that the company’s sponsorship of the Canucks jersey was, in many ways, an even more celebrated achievement than their record-setting Series F raise.
While securing $1.24 billion CAD in funding was a monumental moment, the partnership with the Canucks, particularly in the legal tech world, carried a different kind of weight. For Newton, seeing Clio’s logo on a professional sports team’s jersey was a deeply symbolic moment of growth and recognition. It even struck a personal chord when his children saw the company’s logo in the video game NHL 25 on Xbox. “Suddenly this thing that dad does all day long is cool,” Newton remarks.
The unveiling of the Canucks sponsorship to Clio’s staff was a particularly emotional moment. Newton recounts the electric energy in the room when they revealed the jersey, with senior leaders from the Canucks and the team’s mascot joining in the announcement. The event marked a major milestone not just in the company’s growth but also in its ability to connect with the local community. Newton notes that seeing Clio’s logo displayed at Rogers Arena and on television during sports broadcasts made the company feel tangible to the public, reinforcing its legitimacy and influence. This newfound visibility has translated into positive responses from both customers and prospects, who have recognized Clio’s prominence in the legal tech world.
Newton also reflects on the deeper question of how to make a lasting impact. For him, building Clio has always been about more than just scaling a business or growing profits. It’s about making a real difference in the community. “How do you connect locally with your community? How do you drive impact?” he asks. This mindset has fueled the company’s commitment to charitable efforts through its “Clio Gives” program, which allocates one percent of employee time, one percent of profits, and one percent of its software to nonprofit causes.
Through the Clio Gives program, the company donates tens of millions of dollars in software to legal clinics and organizations. Newton highlights how Clio has supported the Rise Women’s Legal Centre in Vancouver, which aids victims of domestic abuse, as well as the California Innocence Project, which has used Clio’s software to free people from wrongful death row convictions. These initiatives are more than just charity—they’re investments in meaningful change. Newton stresses that as a company reaches later stages of growth, it becomes increasingly important to consider the broader impact it can have on local communities.
Looking ahead, Clio is preparing to make a major investment in a Canadian post-secondary institution, furthering its commitment to local innovation and education. Newton believes that when a company is no longer focused on day-to-day survival, it should use its success to drive positive change and invest in its community.Newton’s hope is that even though Clio is not a consumer brand, its visibility through partnerships like the Canucks sponsorship can inspire the next generation. “Maybe that’s a future employee,” he reflects, envisioning how a simple logo on a jersey could spark curiosity in young minds.
For Newton, building Clio is about creating something that resonates beyond the business world—a company that contributes to its community, supports innovation, and leaves a positive legacy for future generations.In the end, Newton’s journey with Clio is about much more than business success. It’s about making a meaningful impact, both locally and globally, while fostering a company culture built on relationships, community connection, and long-term values. Through its achievements and its commitment to giving back, Clio continues to set an example for how businesses can thrive while making a difference in the world.
Jack Newton, CEO of Clio, reflects deeply on the importance of human connection in building high-performing teams. The company’s growth and success have been fueled by a strong focus on fostering connections among employees, even in a highly distributed, global environment. Newton stresses that while remote work has proven highly productive, in-person collaboration remains a vital part of Clio’s culture.Clio’s decision to invest in physical spaces, particularly the thriving Toronto office, highlights the company’s commitment to maintaining strong interpersonal bonds.
Newton notes that they’ve redefined the traditional idea of “off-sites,” opting for “on-sites” where employees gather in person to collaborate on key projects. This balance of remote work and in-office time has proven effective, and Newton has seen measurable performance improvements in teams that consistently meet in person.Clio’s workspaces are designed to energize employees and encourage creativity, reinforcing the idea that people are at the heart of the company’s success.
This hybrid approach allows Clio to attract and retain top talent from multiple cities, with hubs in Toronto, Vancouver, Calgary, Dublin, and Sydney, fostering a diverse and global team. Newton also highlights the strategic importance of Toronto, his hometown, as a center for Clio’s expansion and a city that offers a broad talent pool to help drive the company’s growth.As Clio continues to scale from $250 million in annual recurring revenue (ARR) to its goal of $1 billion ARR, Toronto’s role in Clio’s expansion is crucial. The city’s dynamic ecosystem, teeming with talent and innovation, positions Clio to collaborate with global companies, gain insights, and recruit from the best.
Newton’s reflections on Toronto align with the company’s broader strategy to grow and diversify its workforce while maintaining a deep connection to the community.On a broader scale, Newton also reflects on the state of Canada’s economy and its challenges in an increasingly uncertain global landscape. He notes a sense of being “adrift” as the country faces issues like lagging productivity, a weakening dollar, and economic performance trailing behind the U.S. The uncertainty in the North American political environment adds to this sense of unease, leaving many businesses unsure of the future direction for Canada.
Despite these challenges, Newton believes Canada has the potential to remain competitive, particularly in the burgeoning field of artificial intelligence (AI). He points out that Canadian businesses have the resources and talent to thrive, but the country must act strategically to ensure its competitive edge in the global market. Newton acknowledges that the AI sector, while currently experiencing inflated valuations, holds long-term promise. He draws parallels to the dot-com boom, where companies like Amazon, once seen as speculative, ultimately transformed industries. Newton is optimistic that AI companies will similarly have a profound, lasting impact on the global economy.
Newton’s vision for Canada is one of growth, adaptation, and resilience. He recognizes that Canadian companies have the potential to lead in industries like AI, but they must overcome political and economic challenges to realize their full potential. While there may be short-term volatility, Newton remains confident that the long-term outlook for AI and other emerging sectors remains strong. He encourages Canadian businesses to embrace innovation, collaborate globally, and leverage the country’s strengths to remain competitive on the world stage.
In conclusion, Newton’s reflections on human connection, team dynamics, and the state of Canada’s economy offer valuable insights into the evolving landscape for businesses in Canada. As Clio continues to grow and evolve, Newton remains committed to fostering a company culture that values both human connection and innovation while positioning the company to thrive in the competitive global market.