DirectLaw is Becoming an Open and Multi-Sided Platform for Virtual Law Firms

Posted on May 24, 2010 by Richard Granat

The DirectLaw Virtual Law Platform is evolving into what is called a multi-sided and open platform. Our latest feature enables the sales of non-Rapidocs documents and HOTDOCS templates, in addition to Rapidocs automated document templates.

We added this functionality in response to our #1 question from law firms -- "Can I use my own documents?" While this option doesn't have the benefits and efficiencies that our libraries of Rapidocs-based documents provide -- i.e., clients won't be immediately presented with an on-line Questionnaire that will automatically create their docs – firms now have the flexibility to easily put their own documents on the "menu" and convert them to sales.

Moreover, beginning in mid-June, 2010, law firms who have invested in automating their legal forms and documents in HOTDOCS for use on the desktop will be able to serve HOTDOCS Questionnaires through the Web browser via the DirectLaw Platform and charge clients for legal forms bundled with legal advice. We are also in the process of identifying other legal applications created by independent developers that can be served from DirectLaw’s Virtual Law Firm Platform.

The launch of our new consumer portal, MyLawyer.com, provides another side to DirectLaw’s Virtual Law Firm Platform. MyLawyer.com contains a searchable Law Firm Directory, legal information, legal tools such as calculators, and a limited number of free legal forms. 

The inclusion of free legal forms enhances DirectLaw's ability to promote the site most effectively through search engines.  DirectLaw also markets this site via press releases and articles/interviews in relevant media channels to drive traffic to DirectLaw’s network of virtual law firm web sites.  

Designed around the concept of limited ("unbundled") legal services, MyLawyer.com compares the differences between limited legal services provided through a law firm vs. a non-lawyer entity like LegalZoom.com. 

Consumers can easily search for a law firm in their state offering on-line, unbundled legal services, clicking directly through to the firm's MyLegalAffairs "menu of services". 

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RocketLawyer Raises More Venture Capital

Posted on May 5, 2010 by Richard Granat

RocketLawyer, a consumer portal linked to a network of law firms has announced that they have secured $6.55 million out of a $7.55 million funding round, according to a regulatory filing.  This is in addition to an initial $2.9 million investment by LexisNexis. It would be interesting to know RocketLawyer's valuation. If the $7.55 million bought 25% of the firm, then RocketLawyer, would be worth upwards of $30,000,000, post-money. If RocketLawyer is generating $6.000,000 in annual volume, then the valuation would be 5 x revenue. Sounds pretty rich. Typically valuations are confidential, but this information could shed some light on how hot the "Software as a Service" legal industry is. 

Dan Nye, former CEO of LinkedIn, has assumed the role of CEO, replacing Charley Moore, the founder of RocketLawyer., who remains as Chairman. (I guess the old adage that the first thing that a VC does when investing in a company is to replace the CEO is true!).

It will be interesting to see how RocketLawyer scales its operation with this funding, and how it develops a strategy to differentiate itself from AVVO and LegalZoom.  As AVVO adds functions to link consumers with lawyers, and as LegalZoom moves towards expanding its referrals to law firms for consumers that need the assistance of lawyers, one can see a certain amount of convergence in these sites. Of course, neither RocketLawyer nor LegalZoom, actually rate or evaluate lawyers, so in my opinion, gives AVVO an upper hand.

Our own legal consumer portal at MyLawyer.com also offers to link consumers to law firms, but the MyLawyer.com Directory only contains virtual law firms that offer legal services online, a niche which we believe will continue to grow. MyLawyer.com's free legal forms and legal documents service is a disruptive move designed to undercut the RocketLawyer and LegalZoom, approach that a consumer should have to pay for a legal form. (Although, our own experience has demonstrated that consumers really like the idea of a person reviewing and creating a legal document even though the person is not a lawyer and can't function as much more than a "scrivener." )

Like "open source" code we believe that the cost of legal forms on the web will continue to decline until pricing approaches zero, and that the real value add while be an attorney's advice and review when it is needed. For an elaboration on this theory, see generally, Chris Anderson' work on , Free - the Future of a Radical Price.  Once a person's situation becomes a bit more complex that the simplest fact situation, it is arguable that some form of legal advice and guidance is required.

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