We are delighted to announce that we have closed a $10 million Series B investment led by Bessemer Venture Partners with participation from our existing investors LiveOak Venture Partners. Bob Goodman, founding partner of BVP’s New York office, has joined our board. You can read the official press release here.
In 2013, we launched the first version of our ediscovery product, won our first customers, and closed our first round of venture capital. We were truly a bootstrapped team: two engineers (Gabe Krambs and Barry Hagan); one salesman (Alex Torry); two lawyers doing everything from customer service to sales meetings to giving CLEs (Kent Radford and Mike Wilson); my longtime assistant (CeCe Cohen); and me. In retrospect, it’s amazing how much this small team was able to achieve. We would not be here without their hard work, and the sacrifice of the family members who let them give their all to Disco.
2014 was a year of experimentation and refinement: major improvements to our product infrastructure; much-demanded features to improve the user experience for lawyers; deeply understanding our market, customer segmentation, pricing, and sales strategies; putting a basic channel-partner program and channel support in place; and developing our first real marketing collateral.
It was also a year of growth.
In engineering, we added Jason Vos, Daniel Posada, and Levi Bucao to the infrastructure team led by our CTO Barry Hagan and created a UI team with Kalley Powell and Brian Garcia led by Lead Engineer, UI Brian Ng. In sales, we welcomed long-time Compaq and HP executive Tom Benwell as our VP Sales and created a system of inside sales associates in Houston (Daniel Donnelly, Wheatley Gates, and David McMillian) and regional sales executives in territories around the United States (Alex Torry, Mike Wilson, Michael Bender, Dustin Whipple, Keith Mobley, Robert Schaffner, Bob Fogarty, and Stephen Mace) held together by sales coordinator Kelly Neuner. We formed an operations department led by Lead Engineer, Operations Gabe Krambs with Julia Englander, Ross McDonald, and more soon to follow. And we brought on Steve Kahan, Houston’s winningest startup VP Marketing (six exits, including Postini to Google), to build a real marketing group at Disco. Our team was 7 at the end of 2013; we are 27 today.
Customers received Disco warmly in 2014, with our users now including lawyers at more than 300 law firms, enterprises, and government units, including 40 of the AmLaw 200. With more than 20% month-over-month recurring revenue growth, Disco is now the fastest-growing technology in ediscovery. Two of our customers loved Disco so much they invested in our Series B, one a senior lawyer from an AmLaw 200 firm and the other the former general counsel of one of our first corporate clients. And we have been delighted by the number of end users and channel partners who volunteered to film video testimonials with us, testimonials we will be sharing over the next several months. To the Disco team that made this growth possible: thank you.
2015 will be a year of scaling. With sales and marketing leadership in place and a real sales team ready to go, we will replicate the success we’ve had in Texas and other initial markets across the United States. If we do our jobs correctly, every litigator in the United States will have heard about Disco and our automagical, do-it-yourself ediscovery model by the end of 2015. Our engineering and operations teams will also grow rapidly to maintain our technology lead, especially on speed, and to ensure our customers continue to receive first-class service directly from the people who built the product.
As a company, we will also begin to publicly articulate the vision that brought us all together, our vision of a world of law done right.
We’ll have more to say about this, both on this blog and in person around the country, in the coming months. But our mission as a company is not simply to build a great ediscovery product; it is to systematically automate all the parts of the practice of law that don’t require independent legal judgment so that great lawyers can focus on doing only the things that only they can do. The time has come for legal technology that empowers great lawyers and great law firms to deliver on the promise of the law to clients and society.
Disco is the company at the intersection of engineering and law. We unite world-class engineers with a deep love and respect for the law. Lawyers, including former partners and associates at some of the most respected law firms in the world, are present in all departments at Disco, including engineering, operations, and sales. With this team, we are confident we have reinvented ediscovery; over the next decade, we will reinvent law.
I am, every day, humbled and honored to serve as Disco’s leader as we set out to change the world for the better.