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LawPath Backed By LegalZoom
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Summary: Australian legal technology start-up LawPath received backing from an online legal services giant.

LawPath, an Australian legal technology start-up, was able to raise capital from LegalZoom, a US private equity-backed online legal services company. The newly formed relationship between the two companies will enable LegalZoom to expand into the Asian industry, according to the Financial Review.


Founded in 2013, LawPath has grown into a legal services provider with 60,000 local clients, who are mainly in the start-up sector. The clients use LawPath for legal tasks that go into starting a business, including registering trademarks and creating legal documents. They have also grown into the online marketplace where legal firms compete for work requested by prospective clients.

In return for a $1.8 million investment, LegalZoom will own an undisclosed percentage of the business. They will also provide LawPath with strategic guidance such as technology expertise, marketing insights and assistance with expansion plans into other markets in Australia and internationally.

LawPath chief executive Dominic Woolrych explained that they have used LegalZoom as a model from their company from the beginning. The funding from LegalZoom will used primarily for marketing and advertising in order to target small to mid-sized businesses.

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Woolrych states that the company has attracted 2,000 new clients each month and growing at 10 per cent month-on-month for 15 months. The company is not yet profitable but with its recent rapid growth and aid from LegalZoom is likely to push the company into profitable growth.

LegalZoom, valued at over $400 million, received its only investment of $200 million by US private equity firm Permira. Woolrych said of LegalZoom, “They have totally dominated the US market. So for us to be able to go to them for advice on whether things will work or not is like having a cheat sheet to bring to Australia and replicate their success.”

He added, “The last two years has been about getting the product up to scratch, and now we want to take it beyond start-ups to everyone now … the bricks and mortars, the mums and dads, the guy at the 7/11, because they are the ones that will really get the benefit.”

LawPath is also partnered with Norton Rose Fulbright, a top tier Australian law firm, to provide other start-ups with a cost effective option to the legal part of raising capital and business expansion. With added support, LawPath hopes to provide services to all kinds of companies by becoming a broader legal online destination.

Woolrych believes this new funding will keep them going for the next 12 to 16 months before they will need more investors. Previous investors include LexisNexis, Norton Rose Fulbright partner Nick Abrahams (and co-founder of the company), Adcock Private Equity, a syndicate led by Ben Keeble of Fort Street Advisors, and the family office of former News Corporation executive Alasdair MacLeod Macdoch Ventures.

Do you think online services are the future for legal services? Share your thoughts with us in the comments below.

To learn more about legal startups offerings, read these articles:




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