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Lawpath raises additional $7.5m in funding
NewLaw platform Lawpath has closed a $7.5 million funding raise, in what the firm said will help deeply disadvantaged small businesses access legal advice.
Lauren Croft
As the online legal platform for small businesses sets its sights on launching into New Zealand and south-east Asia in the near future, this most recent funding round will help more small businesses access legal solutions at one-tenth of the cost of traditional services. Lawpath already has over 230,000 platform users and helps form 5 percent of new companies in Australia.
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The $7.5 million raise saw a number of new investors back the company, including the Gonski family, Justin Ryan, chairman of Adore Beauty, Barry and Darren Smorgon’s Sandbar Investments, and Tony Faure, chair of both oOh! Media and Readytech. US-based investors, including director of LegalZoom, Khai Ha, and founding partner at Kobe Bryant’s VC fund Bryant Stibel, Gonzalo Troncoso have also contributed to the raise. They join returning investors including Adcock Private Equity and LegalZoom, which led Lawpath’s last round in 2019.
Lawpath CEO Dominic Woolrych said that small businesses are deeply disadvantaged when it comes to accessing justice because it is not typically affordable or accessible to them – whereas Lawpath’s subscription-based model allows access to online tools, workflows, legal documents, and on-demand lawyers.
“When I was working as a lawyer, I saw firsthand the issues that businesses face with the legal system,” he said.
“Currently, 87 percent of small businesses do not seek legal advice due to cost or access issues. There are many legal transactions that happen every day that small businesses don’t seek legal advice on simply because they can’t afford to, and it’s leaving them unprotected.
“This is why we launched Lawpath six years ago. Small businesses access accounting, banking and finance solutions via online platforms, and legal should be no different. We’ve created a service that means businesses can have unlimited access to legal help for the same price as their monthly broadband fee.
“With the new funds, we’ll be able to continue helping more businesses have access to legal protection across the region,” Mr Woolrych added.
Tony Faure, chairman of oOh! Media and ReadyTech, also participated in the round and will join the Lawpath board as new chairman.
“I invested in Lawpath because I’m a huge advocate of the company, the platform, the people, and the incredible growth. I love its mission to democratise law so much that I wanted the opportunity to be a part of it too,” he said.
“The investment in products to help small businesses access legal support is critical during these turbulent post-COVID times. Lawpath is the right company and platform to be the defining small business legal platform in the Asia-Pacific.”
Lawpath plans to double its current team of 40 people over the coming months, with a focus on its product and software teams as it becomes a household name in Australia and pushes into new markets.
