The Glendale company that's wowing Wall Street

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In its IPO on the Nasdaq on Wednesday, Glendale-based LegalZoom debuted at $38 a share, rocketing the company's valuation to more than $6 billion.

LegalZoom became a publicly traded company Wednesday on the Nasdaq stock exchange, as investors snatched up shares of the Glendale firm founded in 1999 to upend the legal world.

But the company’s stated mission, “to democratize law,” has often put it in conflict with lawyers groups across the country since its founding, and its future success depends in part on disrupting the staid legal profession.In the U.S. in 2020, 10% of new limited liability companies and 5% of new corporations were formed using LegalZoom services, according to the company’s filings in preparation for its IPO.

Oh, yeah, we estimate the serviceable addressable market — the people who consume legal services today in the areas we offer it — is close to $49 billion. If you do the math here, we have less than a [percentage] point of penetration. Unauthorized practice of law has been pretty well settled at this point through the court system, so we feel really good about our service not running afoul. If anything, I think [state attorneys general] and different legislators are now looking at the legal system and feeling like it’s just not accessible to most people, that it’s too expensive, so a lot of people avoid it.

 

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