Lawpath secures $10 million from Westpac to bolster small business legal tech
Westpac has made a $10 million investment into Lawpath, deepening its partnership with a legal technology startup already used by 500,000 businesses nationwide.
Westpac has made a $10 million investment into Lawpath, deepening its partnership with a legal technology startup already used by 500,000 businesses nationwide.
Lawpath allows small businesses to draft legal documents, ranging from contracts to employment agreements and privacy policies, without the need to recruit a lawyer first.
It also offers fixed-price legal advice for small business users, who may not have the resources to obtain bespoke advice the traditional way.
Users can also deploy Lawpath’s AI tools, which the startup says can decipher complex jargon, provide advice, and review legal documents.
Those with more complex needs — and those eager to have an actual lawyer look over their documents before putting them into action — can also access on-demand advice from Lawpath’s in-house law firm.
For nearly two years, the startup has worked with Westpac in what Lawpath CEO Dominic Woolrych called a mutually beneficial customer acquisition partnership.
Lawpath customers establishing a company for the first time are encouraged to open a business banking account with Westpac, while existing Westpac clients with legal and compliance questions are directed to Lawpath.
The bank also offers Lawpath memberships with discounted fees to Business One Plus account holders.
That partnership has already resulted in thousands of new Lawpath customers, with the tide of new Westpac customers obviously significant enough for the bank to invest in the growing startup.
“From the Westpac perspective, they often get businesses coming to them, or even private consumers coming to them, saying that they want to start a business,” Woolrych told SmartCompany.
“And the Lawpath platform is software that allows you to start a business and then run your business, and it covers all of your legal compliance and accounting needs.
“So given the good partnerships there and what we could offer, we wanted to integrate further.”
The investment deal encompasses a commercial partnership that will see Lawpath functions integrated into Westpac’s own systems, while Woolrych hopes to offer “one-click” Westpac bank account creation through Lawpath proper.
Woolrych did not disclose Lawpath’s new valuation, but said it is a significant jump on the valuation it commanded during its last raise in 2021.
He also painted the investment as an initial strategic investment, with the potential “to go a lot bigger down the track”.
The Westpac investment arrives as competition for small business customers intensifies among the Big Four banks, while challengers like Judo scoop up customers with the promise of specialist SME services.
Westpac says it is focused on its small business banking wing, and in November pledged to hire an additional 200 SME bankers nationwide by 2027.
In a statement, Peter Herbert, Westpac’s acting chief executive in the business and wealth division, said the investment will provide benefits to its small business banking customers.
“As part of the partnership, Lawpath can help Westpac customers make starting and running a
business easier, including registering an ABN, setting up a website or accessing expert small
business legal services,” said Herbert.
The investment is the largest to date for Lawpath, which Woolrych and co-founder Tom Willis established in 2014.
It secured a $1.3 million bridging round in 2015, leading to its $1.8 million Series A in 2018, led by American online legal service provider LegalZoom.
A $4.4 million raise followed in 2019, led by Adcock Private Equity, with contributions from LegalZoom, Pollenizer Investments, Fort Street Advisors and Macdoch Ventures.
With the legal sector still reeling from COVID-19 and disruptions to in-person services, Lawpath in 2021 booked a fresh $7.5 million round, featuring contributions from prior backers and a suite of new high-profile investors.
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