LegalZoom, the online legal services company, made it’s intentions to go public official by filing an S-1 form this morning with the SEC. The company plans to raise raise up to $120 million in it’s IPO (Initial Public Offering).
LegalZoom offers a wide range of documents and subscription services to make it cheaper, easier and faster for individuals as well as businesses to accomplish various legal tasks.
In it’s S-1 form, LegalZoom highlighted positive things such as it’s exploding growth, revenue, traction as well as negative things (from an investor’s perspective) such as increasing competition, several class action lawsuits it’s involved in and customer privacy issues that could harm it’s reputation.
LegalZoom IPO Filing Highlights.
- LegalZoom became profitable for the first time in 2011, with a reported $12.1 million in net income.
- LegalZoom.com has served about 2 million customers in the past 10 years.
- In 2011 alone customers placed 490,000 orders on the site.
- Over 20 percent of LLCs (limited liability companies) formed in California in 2011 did so using LegalZoom.
- LegalZoom’s revenues have been growing at a healthy rate. From $103 million in 2009 to $121 million in 2010 to $156 million in 2011.
- LegalZoom is switching from a transaction-based model to a mix of transactions and subscriptions.
- There’s increasing competition from online and offline legal services.
- The company is involved in several class action lawsuits.
- LegalZoom’s reputation could be harmed if it doesn’t protect its customers’ privacy.
Is LegalZoom Funded?
LegalZoom has already raised more than $100 million in venture capital funding, including a $66 million round that it closed last year. The largest shareholders in the company are Polaris Venture Partners (35.1% stake), Institutional Venture Partners (14.7 percent), Kleiner Perkins Caufield & Byers (6.4 percent), and co-founder and chairman Brian Liu (8.7 percent).
Headquartered in Los Angeles suburb Glendale, LegalZoom is one of the few big tech companies that is not in San Francisco or Silicon Valley.
[ image via flickr / thelittlepurse ]