Small Businesses Have a Future Chance to Invest in LegalZoom as the Company Files its S-1
Posted on 06/05/2021
Glendale online legal technology company LegalZoom.com, Inc., a popular legal service used by small business, filed for an IPO.
Background
LegalZoom was planning to IPO back in 2012, but Permira got a controlling stake in the company. LegalZoom was valued at US$ 440 million in 2012.
In January 2014, funds managed by Permira, acquired US$ 200 million worth of shares in LegalZoom, enabling Permira to become the largest investor in the firm. LegalZoom’s management team and Institutional Venture Partners have maintained the vast majority of their ownership stakes in the LegalZoom at the time. Kleiner Perkins Caufield & Byers maintained its entire stake in 2014, while Polaris Venture Partners maintained a portion of its ownership in LegalZoom.
In August 2018, Permira, Institutional Venture Partners XIII, L.P., and Kleiner Perkins Caufield & Byers, sold some shares. Buyers during this period include Francisco Partners, GPI Capital, and Technology Crossover Ventures (TCV). At that time, Permira sold 38.903036 shares for US$ 407.703817 million.
Bryant Stibel Growth, LLC is also a shareholder in LegalZoom. Bryant Stibel Growth is an investment firm owned by Jeffrey (Jeff) Stibel and the late LA Lakers star Kobe Bryant. Bryant died in 2020 in a helicopter crash.
In 2019, long-time LegalZoom head honcho John Suh stepped back. Suh was CEO since 2007 and from 2004 to 2019, LegalZoom grew 25x. In 2020, the LegalZoom generated US$ 470.636 million in revenue and in 2019 US$ 408.38 million in revenue. LegalZoom is profitable. In 2020, the firm had net income of US$ 9.896 million and net income in 2019 of US$ 7.443 million.
