LegalZoom jumps after IPO: the DIY legal service is riding high on the business boom

Legally Zoomed... to the public market. When you need legal help, you either a) do hours of Googling, or b) beg your friend to FaceTime with their lawyer mom — anything to avoid paying $500/hour. LegalZoom tries to fix that by offering legal services online. Think: DIY legal documents and e-consultations. You fill out some questions, and LZ whips up completed legal docs. On Wednesday, the 20-year-old company whipped up an IPO:

• LegalZoom shares soared 35% from their IPO price on their first trading day, giving it a $7B+ market cap.
• 8%: LZ's CEO says that only 8% of legal services are delivered online, creating a big opportunity for online legal providers. Legal services market = ~$50B opp.

"Call my e-lawyer... I need to LLC my CBD kombucha startup." 2020 was the best year on record for new business creation, and applications for new businesses have continued to soar this year. LegalZoom reaped the benefits of all those business apps:

• Last year, 10% of new LLCs (limited liability companies) and 5% of new corporations in the US were formed through LegalZoom. LZ's sales soared to nearly half a billion.