LegalZoom.com, Inc. (NASDAQ: LZ) announced the launch of Grant Finder, a free AI-powered tool designed to help small business owners identify funding opportunities. The tool allows users to describe their business and funding needs in natural language to receive a curated list of grant programs matched to their industry, location, and other characteristics.

The service requires no sign-up or payment and aims to address challenges entrepreneurs face when searching for grants among thousands of government and corporate programs. Traditional manual research often leads to outdated listings and irrelevant programs, according to the company's announcement.

"Small business owners are launching at record rates, but they are doing so in an environment where access to capital is increasingly challenging," said Aaron Stibel, LegalZoom Chief Business Officer and Chief Customer Officer.

The launch comes as new business applications reached 505,240 in February, representing a 14 percent increase from the previous year, according to U.S. Census Bureau data cited by the company. LinkedIn reports show a 69 percent surge in people adding "Founder" to their profiles over the past year.

LegalZoom's internal data indicates that 63 percent of nonprofits formed through its platform cite fundraising help as their primary need, with 39 percent identifying grant funding as a key success indicator. The company notes that cash flow issues, including lack of funding, account for 82 percent of small business failures.

The Grant Finder tool is part of LegalZoom's broader services for entrepreneurs, spanning business formation to ongoing legal and compliance needs. The company positions itself as a leading online platform for legal services, serving millions of customers over two decades.