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Avvo, a new legal services start-up

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Avvo is a new Seattle start-up that wants to help people deal with legal issues. The company is still secretive, but the idea is to give anyone who needs a lawyer the tools and information to help them through the process. It can be "an incredibly scary and frightening situation," says Mark Britton, chief executive of Avvo.

Silicon Valley venture capital firm Benchmark Capital has invested $3 million. It is the first investment by Rich Barton, who joined Benchmark as a venture partner last year to scout for deals in Seattle. (Yes, he's the same guy who is chairman and chief executive of Zillow, the company that has shaken up the real estate market by providing home valuations online.)

Barton founded and served as chief executive officer at Expedia until 2003. That's where he got to know CEO Britton. Britton was Expedia's general counsel.

There are at least two other Web companies serving the legal space, Lawyers.com and FindLaw.

Barton said he is scratching his head about why this space hasn't been gone after more aggressively.

Benchmark can probably identify with headaches caused by the legal process. The firm and its portfolio companies have had to deal with their fair share of lawsuits. And as an aside, we note that Benchmark partner Andy Rachleff donated money to a special fund to the Northern California Innocence Project, which works on behalf of people who are wrongly convicted. He did so to honor Frank Quattrone, the Silicon Valley banker who said he was unfairly convicted, and recommended the NCIP to his friends as a worthy project to fund.


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Comments

"Zillow, the company that has shaken up the real estate market a by providing home valuations online.)"
Is there any evidence that Zillow is having any impact on the real-estate market?

Jennie on June 7, 2006 8:40 AM
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Law is closer to healthcare than real estate in terms of the consumer relying on professional expertise. We still haven't seen anything in real estate that proves it can be disruptive, but at least in that area you can make the argument that information is the main thing that differentiates the consumer from the expert, and therefore the Internet can close the gap in a big way. Not so true in law or healthcare. Just like what happened in healthcare, I suspect a web property is more likely to turn into a casual information site than anything disruptive.

Dorrian on June 7, 2006 8:53 AM
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Jennie, good question. I should clarify. I meant "shaking up" more in the sense that Zillow is creating a lot of angst out there, because it is one more tool that helps regular buyers and sellers "disintermediate" the real estate agent (see this zinger press release by PropertyShark). Zillow claims a 7 percent margin of error, and in some markets like SF, a 5 percent margin of error. Based on my own experience with agents, who veered all over the map in negotiating what price to sell my last house (and certainly by more than 7 percent), there may be more logic and use to Zillow than some agents would like admit. I know I would certainly consult it if I were selling a house again, and that I'd use it to confront my agent about the price they are recommending. (I may be unusual, but I ended up buying my last house without an agent, in part because of the transparency out there now; I haven't regretted it). What I didn't mean to claim, however, is that Zillow is somehow succeeding financially. That is too early to tell.

Matt Marshall on June 7, 2006 9:13 AM
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For some reason, the URL for the "zinger" press release I referred to above didn't show up. Here it is: http://www.primezone.com/newsroom/news.html?d=93604

Matt Marshall on June 7, 2006 9:34 AM
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I think Dorrian is right.

For seven years I have worked for an attorney. If we could figure a way to make our web presence more useful to clients, we would. Legal services are not about information - if they were, they would be ripe for web disruption - they are about knowledge.

Any attorney will tell you that the result you obtain in a court is highly dependent upon the Judge, the day, the opposing attorney, their own client and LASTLY, the law.

Tracy Coyle on June 7, 2006 11:04 AM
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As someone working in this area for several years now, I hope that this turns into a service upon which customers can rely for quality information and to which attorneys and legal service providers can turn for effective dissemination of information.

After contributing free content to Law Guru for several years, I started Prison Services Project on a rock-bottom shoe string. In doing research on the side, I've gained a pretty good idea of the enormous potential this service represents and teh tools that will make it fly.

I have to say that with such generous start-up funding and the top talent that it has attracted, it could easily revolutionize the legal market.

Yes, law is about knowledge, but knowledge relies on data. The more data the consumer has, the more finely honed will be the legal issues they present to counsel. The more prepared counsel is the more likely they are to recommend ADR over litigation and the higher the satisfaction in the legal result should ADR not prove appropriate.

Bravo!

Regina Mullen on August 31, 2006 6:08 PM
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