More big money for online legal services. After LegalZoom raised $66 million from Kleiner Perkins And IVP, competitor Rocket Lawyer is also announcing a new round of funding. The startup has raised $18.5 million in funding led by August Capital with Google Ventures and Investor Growth Capital(IGC) participating in the round. This brings Rocket Lawyer’s total funding to $30 million.
Founded by lawyer Charles Moore, Rocket Lawyer not only provides legal documents to consumers and small businesses but also helps users that create customized legal documents that can be electronically signed online and shared instantly or downloaded for printing. Moore says that each month, more than 20,000 Last Wills and 40,000 Business Contracts are created. Rocket Lawyer offers these documents for free.
While users can use Rocket Lawyer on a one-off basis, many of the site’s users pay for actual legal advice along with access to the documents. Users can pay as little as $20 for a single consultation to $200 to $300 per year for on call legal service, which is a fraction of what some lawyers cost (the company currently has thousands of people who pay for the yearly service).
Moore says that 20 million people will have used Rocket Lawyer by the end of this year. And visitors to Rocket Lawyer have grown over 100 percent, year over year. The company has been growing revenue by $10 million each year, but declined to reveal if Rocket Lawyer is profitable yet.
Considering the traction that other players like LegalZoom are seeing as well, it looks like the online legal services industry is a fast-growing market that continues to have major potential. And LegalZoom is looking at an IPO on the next year.
The new funds will be used to continue building Rocket Lawyer’s brand and patent-pending online legal solutions.