CS Disco, a legal tech startup, filed papers with the U.S. Securities and Exchange Commission for an initial public offering of stock.
The Austin-based company did not set a date to go public or a price for its shares, which will be traded under the stock ticker “LAW.”
CS Disco plans to use the proceeds from the stock sale for “working capital and other general corporate purposes, including developing and enhancing our technical infrastructure, solutions, and services, expanding our research and development efforts and sales and marketing operations, meeting the increased compliance requirements associated with our transition to and operation as a public company and expanding into new markets,” according to the filing. The company could also use the net proceeds to acquire complementary businesses, products, services, or technologies, but it doesn’t have any plans to do so right now.
CS Disco reported revenue of $68.4 million for 2020, compared to revenue 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 gets less than 5 percent of its revenue from international sales, but it plans to expand further.
To date, CS Disco has raised $161 million in venture capital, according to its filing. The company reported that it had $53.6 million of cash and cash equivalents as of March 31st, 2021.
CS Disco uses artificial intelligence and cloud computing to help lawyers and legal teams. As of March 31, 2021, the company reported it had 909 enterprises, law firms, legal services providers, and government organizations as its customers.
And the market is growing.
“Legal services is a massive, growing global industry that we believe is significantly underpenetrated by modern technology solutions,” according to the company’s filing. “According to Statista, total global legal services spend is forecasted to be $767 billion in 2021 and grow to $846 billion in 2023. Within legal services, DISCO Ediscovery addresses the ediscovery market. According to International Data Corporation, the worldwide ediscovery software and services market is forecasted to be $14.7 billion in 2021 and grow to $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.
