Legal Tech Startup CS Disco Files to go public

CS Disco, a legal technology startup, has filed documents with the United States Securities and Exchange Commission for an initial public offering of shares.

The Austin-based company has not set an IPO date or price for its shares, which will trade under the title “LAW”.

CS Disco plans to use the proceeds from the sale of shares for “working capital and other general corporate purposes, including the development and improvement of our technical infrastructure, solutions and our services, by expanding our research and development efforts and our sales and marketing operations, by meeting the increased compliance requirements associated with our transition and operation as a public company and our expansion into new markets ”, according to the file. The company could also use the net proceeds to acquire complementary businesses, products, services or technologies, but it does not intend to do so at this time.

CS Disco reported sales of $ 68.4 million for 2020, compared to sales of $ 48.5 million for 2019. It also

reported a net loss of $ 29.8 million for 2020 and a net loss of $ 22.8 million for 2019.

The company derives less than 5% of its turnover from international sales, but it plans to grow further.

To date, CS Disco has raised $ 161 million in venture capital, according to its file. The company said it had $ 53.6 million in cash and cash equivalents as of March, 2021.

CS Disco uses artificial intelligence and cloud computing to help lawyers and legal teams. As of March 31, 2021, the company said it had 909 businesses, law firms, legal service providers and government organizations among its clients.

And the market is growing.

“Legal services are a massive and growing global industry that we believe is significantly under-penetrated by modern technological solutions,” according to the company’s filing. “According to Statista, total global legal services spending is expected to rise to $ 767 billion in 2021 and reach $ 846 billion in 2023. Within legal services, DISCO Ediscovery addresses the ediscovery market. According to International Data Corporation, the global market for ediscovery software and services is expected to reach $ 14.7 billion in 2021 and reach $ 16.9 billion by 2024. “

Founded in 2013, CS Disco moved its headquarters from Houston to Austin in 2018. As of March, the company had 336 full-time employees.

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