The timing of LegalZoom’s IPO proved exceptional because the broad market and more specifically tech stocks have since trended downward. The stock price peaked at $39.85 (a valuation of $7.8 billion) on August 10, 2021. At that share price, LegalZoom raised about $700 million that paid off existing debt and created a cash reserve to support further market expansion. Instead, the private equity firm Permira pounced with an initial $200 million investment, and LegalZoom used that funding, plus another $500 million more raised in 2018 (at a $2 billion valuation), to build its brand and scale its customer base.įast forward to June 2021: LegalZoom did list on the public market, and the initial LegalZoom stock offering released at $28 a share with a valuation of $5.2 billion. LegalZoom first tried for a public listing in 2012, shooting to raise $100 million on a $500M valuation, but unfavorable market fluctuations (caused at least partly by Facebook’s decline in value after its IPO) simply got in the way. This post is about the lessons we’ve learned so far-about the industry, about ourselves, and about why LegalZoom is such a formidable force in our shared market. And, since their initial public offering (IPO), LegalZoom is required to report their numbers to shareholders, so now we get to enjoy seeing regular snapshots of their inner workings. Why? We think LegalZoom is set up to do great in the long run, so it seems like a sound investment strategy. We also invested more than $250,000 in LegalZoom stock at various buy points between $11 and $15 a share, and we keep buying. Northwest is LegalZoom’s largest competitor, so when LegalZoom Inc went public, we paid close attention. Why We Bought $250,000 of LegalZoom Stock Posted on Admin | May 11, 2022
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