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AI-fueled e-discovery company DISCO plans IPO

3 minute read

REUTERS/Andrew Kelly

  • Company estimates $42 billion market opportunity globally
  • Camara & Sibley founder Kiwi Camara is CEO

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(Reuters) - E-discovery company CS Disco Inc is planning an initial public offering, becoming the latest legal technology company in recent weeks to signal an intention to go public.

Austin-based DISCO, which offers artificial intelligence-enabled e-discovery, document review and case management solutions, filed its registration statement with the U.S. Securities and Exchange Commission on Friday.

"The broad applicability of our solution across a spectrum of industries has created a significant market opportunity for us, which we estimate to be $42 billion globally," the company said in the prospectus.

DISCO, which launched in 2013, grew out of litigation boutique Camara & Sibley. The law firm's founder, Kiwi Camara, is DISCO's co-founder and CEO. The company said it posted revenue of $48.6 million in 2019 and $68.4 million 2020, with growth continuing into 2021. It has raised $161 million in capital since its launch and had $53.6 million in cash and cash equivalents as of March 31, its filing said.

The company isn't the only legal tech venture to announce intentions to go public in recent weeks. Glendale, California-based online legal services company LegalZoom.com Inc and Palo Alto-based Intapp Inc, a software provider for professional services and capital markets firms, both announced planned market debuts in the past month. LegalZoom is aiming for a valuation of more than $5 billion, while Intapp is aiming for a valuation of about $1.65 billion, according to regulatory filings.

Targeting legal departments with its cloud-native, AI-powered platform, DISCO's customers include law firms, companies, legal services providers and governments. The company said it automates "manual, time-consuming and error-prone work," enabling legal departments to "focus on delivering better legal outcomes."

Last year, 171 of the Am Law 200 law firms used DISCO in their work on behalf of clients, and as of the end of March, the company has 909 customers, the filing said.

"Our aim is to create a solution that feels 'magical' to lawyers, that is, one that feels intuitive, simple, powerful, well-tailored to lawyers' problems and workflows and a joy for lawyers and other legal professionals to use," DISCO said in the filing.

Cooley is advising DISCO. J.P. Morgan Securities Inc and BofA Securities Inc are joint book-running managers of the offering and acting as representatives of the IPO underwriters, which turned to Morgan, Lewis & Bockius.

A DISCO representative confirmed the company filed the registration statement but declined additional comment.

Read more:

LegalZoom eyes over $5 billion valuation in second attempt at U.S. IPO

Sara Merken reports on privacy and data security, as well as the business of law, including legal innovation and key players in the legal services industry. Reach her at sara.merken@thomsonreuters.com

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