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Friday, Jul 1, 2022

LegalZoom Files for IPO

Online legal tech company LegalZoom has filed paperwork to go public. The Glendale-based company said in a filing with the Securities and Exchange Commission that it will attempt to raise up to $100 million in the IPO.LegalZoom, which provides legal documents and business services to entrepreneurs and small businesses, experienced tailwinds during the COVID-19 pandemic. The company plans to use proceeds from the offering to expand its marketing to new customers and retain existing customers.

“Individuals and small businesses turned to online services given the relative inaccessibility of offline alternatives, and we believe these shifts represent an acceleration of existing trends toward greater adoption of online services,” the company said in its filing.The company applied for listing under ticker “LZ.” The amount of shares that will be offered, as well as the share price range, has yet to be determined.Morgan Stanley, J.P. Morgan, BofA Securities, Barclays, JMP Securities, Citigroup, Credit Suisse, Jefferies, William Blair and Raymond James will underwrite the offering. Currently . LegalZoom’s largest shareholders are BSG, Francisco Partners, Institutional Venture Partners, Technology Crossover Ventures, GPI Capital Gemini and Kleiner Perkins Caufield and Byers.LegalZoom warned of potential risks to its business, including its recent growth not being indicative of its future growth, the highly competitive nature of the legal market and anticipation of increasing expenses which will likely impact profitability.

Antonio Pequeño IV
Antonio Pequeño IV
Antonio “Tony” Pequeño IV is a reporter covering health care, finance and law for the San Fernando Valley Business Journal. He specializes in reporting on some of the biggest names in the Valley’s biotechnology sector. In addition to his work with the Business Journal, Tony has reported with BuzzFeed News on the unsupervised use of Clearview AI, a controversial facial recognition technology. Tony, who also conducts freelance reporting, graduated from the USC’s Master of Science in Journalism program in 2021. He is in his fifth year as a journalist as of 2021.

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