Online legal services company LegalZoom filed an S-1 form this morning declaring its intention to raise up to $120 million in an IPO.
LegalZoom offers documents and subscription services to make it easier for individuals and businesses to accomplish basic legal tasks. As evidence of the company's traction and impact, the S-1 says LegalZoom has served about 2 million customers in the past 10 years. It also says that in 2011, those customers placed 490,000 orders on the site, and during that period, more than 20 percent of limited liability companies formed in California did so through LegalZoom.
The company's revenue has been growing steadily, if not dramatically, in the past couple of years — it was $156 million in 2011, up from $121 million in 2010 and $103 million in 2009. LegalZoom also became profitable for the first time last year, with $12.1 million in net income.
LegalZoom says its future plans include adding more services, expanding its subscription legal plans, and growing internationally. Risk factors listed in the S-1 include:
- The company is switching from a transaction-based model to a mix of transactions and subscriptions, so it's not clear how many customers will become subscribers.
- LegalZoom's reputation could be harmed if it doesn't protect its customers' privacy.
- There's increasing competition from online and offline legal services.
- The company is involved in several class action lawsuits.
LegalZoom has raised more than $100 million in funding, including a $66 million round last year. The largest shareholders in the company are Polaris Venture Partners (with 35.1 percent of the company), Institutional Venture Partners (14.7 percent), Kleiner Perkins Caufield & Byers (6.4 percent), and co-founder and chairman Brian Liu (8.7 percent).
The company is headquartered in Los Angeles suburb Glendale, so this is also nice validation for the LA tech community.
- LEGALZOOM.COM
- POLARIS VENTURE PARTNERS
- KLEINER PERKINS CAUFIELD & BYERS
- INSTITUTIONAL VENTURE PARTNERS
LegalZoom is the nation's most recognized name in law, the alternative to the traditional law firm. The leading provider of online legal document services and legal plans to families and small businesses, LegalZoom offers high quality, affordable legal services, marrying cutting-edge technology with access to experienced attorneys. LegalZoom was founded on the idea that all Americans deserve access to the law; and as of 2011 the company has helped close to two million small businesses and families...
Polaris Venture Partners was founded in 1996, and in its 10+ years of existence has made investments in successful companies like Akamai, Allaire, Alnylam, Automattic, JibJab, LogMeIn, PowerSoft, QuantCast, Sirtris, and SolidWorks. The company's portfolio extends beyond digital media investments through its stakes in life sciences and enterprise software concerns and other industries.
Kleiner Perkins Caufield & Byers (KPCB) is a well known Silicon Valley venture capital firm, due in large part to their past success. They were early investors in many significant companies, including Amazon, AOL, Compaq, Electronic Arts, Google, Intuit, Macromedia, Netscape, Segway, and Sun Microsystems. The name of the firm comes from the four founding partners: Eugene Kleiner, Tom Perkins, Frank J. Caufield, and Brook Byers. In March 2008, KPCB announced the iFund, a $100M investment initiative focused on ideas...
With $3 billion of committed capital, Institutional Venture Partners (IVP) is one of the premier later-stage venture capital and growth equity firms in the United States. The partnership is currently investing IVP XIII, a $750 million later-stage fund focused on investments in rapidly growing technology and media companies. Founded in 1980, IVP has invested in over 300 companies, 90 of which have gone public. IVP is one of the top performing firms in the industry and has a 31...
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