As we try to go to press on the Orange Rag out next week yet ANOTHER interesting announcement comes out today (24 January) that we know you’ll want to hear about, as eDiscovery vendor DISCO raises $83m, bringing the total it has raised to $135m. Legal tech is now firmly on the investment fund radar – we published just today that Silicon Valley investor Accel-KKR has alongside Scottish Equity Partners invested $10m in Peppermint Technology and one of the reasons for that is that the legal tech sector is perceived by investors as a hot and still untapped opportunity. Here is the announcement.
AUSTIN — January 24, 2019 —Legal technology company DISCO today announced an $83 million investment led by Georgian Partners, a Toronto-based venture-capital firm with deep expertise in applied artificial intelligence. Existing investors Bessemer Venture Partners, LiveOak Venture Partners, The Stephens Group, and venture-debt provider Comerica all participated in the round. Tyson Baber, a partner at Georgian Partners, joined DISCO’s board of directors.
DISCO has raised $135 million, more than any other enterprise legaltech company. This investment reflects the market’s consolidation behind DISCO as the leading cloud ediscovery platform, and the growing customer consensus that cloud ediscovery will replace legacy ediscovery services vendors and software providers.
The scale of this investment reflects investors’ belief that ediscovery is just the beginning: that legal technology will impact the entire $437 billion legal market.DISCO will use this investment to accelerate its growth in the $12.5 billion ediscoverymarket — and to bring its unique combination of world-class engineering and legal expertise to building products that transform other areas of legal practice.
“DISCO’s mission is to create technology to modernize the practice of law,” said DISCO founder and CEO Kiwi Camara (pictured). “Great legal technology helps great lawyers and legal teams deliver better legal outcomes for their clients. We do this in ediscovery today; over time, we will do this in all areas of legal practice.”
“Artificial intelligence is poised to transform the legal industry. As a trusted partner to hundreds of enterprise clients, DISCO is ahead of the curve in securely applying artificial intelligence,” said Tyson Baber, Partner at Georgian Partners. “We are excited to help DISCO accelerate as they drive the speed of innovation in this industry and find better ways to serve legal professionals around the world.”
In addition to rapidly scaling up U.S. operations, DISCO will use this investment to continue aggressive international growth. DISCO opened its London office in October 2018 and plans to establish offices in Canada, Europe, Asia, Australia, and Latin America over the next several years, both to serve local markets and to better serve its existing multinational clientele.