DISCO Raises $40 Million More in Debt Financing

DISCO, the legal tech startup, announced Thursday that it has raised an additional $40 million in debt financing from Comerica.

In October, Austin-based DISCO announced it had raised $60 million in equity funding. In total, the company raised $100 million during the fourth quarter, bringing its total funding raised to date to $235 million. That values the company at $785 million.

DISCO recently landed on the 2020 Deloitte Technology Fast 500 and the Forbes Cloud 100. ‍DISCO uses applies artificial intelligence and cloud computing to help lawyers and legal teams.

DISCO has more than 700 corporations, law firms, and government agencies as customers. Lawyers use its

software “in some of the most important cases in the world, including the opioids litigation and public investigations into government responses to COVID-19 worldwide,” according to a news release. Its products include the DISCO cloud technology platform, software products like DISCO Ediscovery and DISCO Case Builder, and legal services like DISCO Managed Review.

“Legaltech is booming now, and the industry’s real growth has only just begun,” Kiwi Camara, DISCO’s CEO, said in a news statement. “Over the next five to 10 years, legaltech will emerge as the next high growth category creator and category leader for legaltech. Legal departments and law firms are embracing the power of artificial intelligence to automate away the parts of the practice of law that don’t require human legal judgment, freeing great lawyers to do the work that only they can do.”

DISCO plans to use the funds raised to invest in its AI-powered products. It is also expanding its sales and marketing efforts in North America and it will expand its international presence. Its also building its strategic channel program.

“Comerica is thrilled to continue our long-term partnership with the DISCO team through the expansion of our existing financing relationship,” Kevin Urban, Senior Vice President and Group Manager, Comerica Technology & Life Sciences, said in a news release. “DISCO continues to differentiate itself in the market with its products, services, and vision for how technology can transform the legal function.”

The startup, which moved to Austin in 2018 from Houston, has more than 300 employees with offices in Austin and London.