Total amount raised
$951.7 Millions
Latest funding date
07/01/2024
Location
LegalZoom has successfully raised significant funding through various rounds, including post-IPO equity, and is publicly traded under the NASDAQ symbol LZ. The platform offers a comprehensive suite of services designed to help individuals and businesses with legal and financial needs.
Keep reading to explore the intricacies of LegalZoom's fundraising journey and the investors backing this innovative platform.
What Is LegalZoom?
LegalZoom, founded on December 1, 1999, in Glendale, California, is a technology platform that provides access to professional legal advice. The company was established by Brian Lee, Brian Liu, Eddie Hartman, and Robert Shapiro. LegalZoom employs between 501 and 1000 people.
LegalZoom offers a variety of services, including business formation, registered agent services, intellectual property services, estate planning, eSignature services, and beneficial ownership information reports. The platform is designed to help individuals and businesses with legal document services and legal plans.
Additionally, LegalZoom provides access to independent attorneys and self-service tools, assisting users in starting and managing their businesses. The company emphasizes fast, personalized service and predictable pricing, making legal assistance more accessible to a broader audience.
How Much Funding Has LegalZoom Raised?
- Series A
- Amount Raised: $45M
- Date: March 2007
- Lead Investors: Polaris Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the company's service offerings and scale operations.
- Series B
- Amount Raised: $66M
- Date: July 2011
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the platform and enhance user experience.
- Private Equity Round
- Amount Raised: $200M
- Date: February 2014
- Lead Investors: Permira
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support growth initiatives and market expansion.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: August 2016
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To invest in new technology and product development.
- Secondary Market
- Amount Raised: $500M
- Date: July 2018
- Lead Investors: Francisco Partners, GPI Capital
- Valuation at Round: $2 billion
- Motivation Behind the Round: To help pay out some investors and push into international markets.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: November 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue scaling the business and enhance service offerings.
- Post-IPO Secondary
- Amount Raised: $140M
- Date: September 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to existing shareholders and support strategic initiatives.
- Post-IPO Equity
- Amount Raised: $700K
- Date: July 2024
- Lead Investors: Registered Agents
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fund ongoing operations and business expansion.
Total Amount Raised: $951.7M
Current Valuation: Not publicly disclosed
Key Investors
- Francisco Partners
- Details: Francisco Partners is a private equity firm that specializes in investments in technology and technology-enabled businesses. They have a strong track record of helping companies grow and innovate.
- Investment Focus Areas: Technology, healthcare, financial services.
- Notable Investments: MyHeritage, GoodRx, Redis Labs.
- GPI Capital
- Details: GPI Capital is an investment firm that focuses on growth equity investments. They aim to support companies with high growth potential.
- Investment Focus Areas: Technology, consumer, healthcare.
- Notable Investments: Uber, Spotify, Airbnb.
- Franklin Templeton Investments
- Details: Franklin Templeton Investments is a global investment management organization. They offer a wide range of investment strategies and services.
- Investment Focus Areas: Equity, fixed income, alternative investments.
- Notable Investments: Various public and private companies across multiple sectors.
- Neuberger Berman
- Details: Neuberger Berman is an employee-owned investment management firm. They provide a diverse range of investment strategies.
- Investment Focus Areas: Equities, fixed income, private equity, hedge funds.
- Notable Investments: Uber, Airbnb, Palantir.
- Kleiner Perkins Caufield & Byers
- Details: Kleiner Perkins Caufield & Byers is a venture capital firm that invests in early-stage and growth companies. They have a history of backing successful startups.
- Investment Focus Areas: Technology, life sciences, clean technology.
- Notable Investments: Google, Amazon, Twitter.
What's Next for LegalZoom?
LegalZoom stands at the cusp of significant growth opportunities, particularly in international markets. With a $2 billion valuation and substantial financial backing, the company is well-positioned to enhance its platform and attract more clients. The increasing reliance on online legal services and the demand for accessible legal assistance further bolster its growth potential.
Future fundraising opportunities appear promising, given the successful $500 million raise. LegalZoom may pursue additional funding rounds or even consider an IPO to support its expansion and technological advancements. However, the company must navigate challenges such as competition, regulatory hurdles, and maintaining service quality as it scales.
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