Lawpath Secures $7.5M AUD Funding - Expanding Legal Services in APAC

Lawpath Secures $7.5 Million AUD to Expand Legal Services Across Asia Pacific

Lawpath, a subscription-based platform delivering legal services, aims to replicate LegalZoom’s success within the Asia Pacific region – a goal supported by an investment from LegalZoom itself. Headquartered in Sydney, Australia, Lawpath provides crucial support to small businesses through a range of offerings. These include legally sound documents, tailored legal processes, digital signatures, business registration assistance, and access to lawyers on demand.

Recent Funding and Growth

The company recently announced a successful funding round, raising $7.5 million AUD (approximately $5.5 million USD). This capital injection will facilitate expansion into new territories, with planned launches in New Zealand and various countries within Southeast Asia.

Established in 2013, Lawpath currently boasts a user base of around 230,000. It is estimated that the platform is utilized in the formation of 5% of all new companies established in Australia.

Investor Details

This funding round, bringing Lawpath’s total funding to $14 million AUD, attracted a diverse group of investors. Notable participants include the Gonski family, Justin Ryan (chair of Adore Beauty), Sandbar Investments, Tony Faure (chair of Ooh! Media and Readytech), Khai Ha (director at LegalZoom), and Gonzalo Troncoso (founding partner at Bryant Stibel). Furthermore, existing investors Adcock Private Equity and LegalZoom also contributed to this raise.

Strategic Allocation of Funds

Beyond geographical expansion, the newly acquired funds will be strategically allocated to bolster Lawpath’s team. The company intends to double its current workforce of 40 employees, with a particular focus on strengthening its product and software development departments.

Addressing a Gap in Legal Services

Dominic Woolrych, co-founder and CEO of Lawpath, was motivated to establish the company after observing limitations within traditional law firms. He recognized that many small businesses lacked access to essential legal services.

According to Woolrych, approximately 98% of global businesses are classified as SMEs, yet a significant 87% refrain from seeking legal counsel due to prohibitive costs and accessibility challenges. He explained in an email to TechCrunch that a vast number of daily legal transactions go unaddressed by small businesses, leaving them vulnerable.

Target Customer Profile

Lawpath primarily serves businesses with annual revenues under $5 million and employee counts of up to 20. A substantial 40% of its clientele operate within the online space, encompassing e-commerce and the gig economy. Recently, there has been a notable increase in registrations from professional service providers, including financial planners, accountants, and even other legal professionals.

Subscription Plans and Services

Lawpath’s subscription plans begin at $29 AUD per month. The most popular option is the “Legal Advice” plan, priced at $89 AUD monthly, which provides unlimited 30-minute consultations with a lawyer.

Additional services include comprehensive business registration packages that automate company setup, manage government and tax registrations, and oversee ongoing legal and compliance requirements. A lawyer marketplace is also available.

Pandemic-Driven Growth

Woolrych noted a surge in platform usage during the pandemic. More companies relied on Lawpath’s team accounts, collaborative document features, and e-signature tools to facilitate remote operations. Demand for business registration and legal plan subscriptions also increased as individuals pursued side ventures during lockdowns.

Scalability and Localization

Lawpath’s Software-as-a-Service (SaaS) platform provides a robust infrastructure for legal documents, APIs, and lawyer networks, enabling rapid expansion into new markets. The platform’s adaptability allows for swift localization.

“We envision Lawpath mirroring the trajectory of Xero,” Woolrych stated. “Xero functions as an accounting infrastructure for small businesses, streamlining their accounting processes. Xero successfully entered numerous new markets by integrating local accounting practices into its platform. Lawpath aims to achieve the same for legal services, becoming the ‘Xero of Law.’ ”