As demand grows for privacy-first enterprise AI that may run with out sending delicate knowledge to the cloud, SpotDraft has raised $8 million from Qualcomm Ventures in a strategic Sequence B extension to scale its on-device contract evaluate tech for regulated authorized workflows.
The extension values SpotDraft at round $380 million, the startup instructed TechCrunch, practically double its $190 million post-money valuation following its $56 million Sequence B in February of final yr.
Throughout regulated sectors, enterprises have moved rapidly to check generative AI, however privateness, safety, and knowledge governance issues proceed to sluggish adoption for delicate workflows — particularly in authorized, the place contracts can embrace privileged data, mental property, pricing, and deal phrases. Business analysis has constantly flagged knowledge safety and privateness as key limitations to wider GenAI deployment in skilled providers, pushing distributors like SpotDraft to pursue architectures that maintain core contract intelligence on the consumer’s system fairly than routing it by the cloud.
At Qualcomm’s Snapdragon Summit 2025, SpotDraft demonstrated its VerifAI workflow working end-to-end on Snapdragon X Elite-powered laptops, executing contract evaluate and edits offline whereas protecting the doc on the native machine. SpotDraft stated web connectivity continues to be required for login, licensing, and collaboration options, however contract evaluate, danger scoring, and redlining can run totally offline with out sending paperwork to the cloud.
SpotDraft sees authorized as an early proving floor for on-device enterprise AI, arguing that delicate contracts usually can’t be routed by exterior cloud fashions on account of privateness, safety, and compliance constraints.
“The way forward for how enterprise AI goes to be — proper now, there’s bought to be AI that’s near the doc, which is privateness important, latency delicate, [and] legally delicate, and people are the issues that may transfer on system,” stated Shashank Bijapur (pictured above, left), co-founder and CEO of SpotDraft, in an interview.
SpotDraft says VerifAI’s on-device functionality extends past merely producing summaries, with the instrument designed to use playbooks and proposals immediately inside Microsoft Phrase, the way in which authorized groups already work. “VerifAI will examine a contract in opposition to your tips, your playbooks, your prior insurance policies,” stated Madhav Bhagat (pictured above, proper), co-founder and CTO of SpotDraft.
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Bijapur instructed TechCrunch that the demand for on-device AI is rising most clearly in tightly regulated sectors, together with protection and pharma, the place inner safety critiques and knowledge residency necessities can sluggish or block the usage of cloud-based AI instruments for delicate paperwork.
On-device fashions have quickly closed the hole with cloud-based techniques, each in output high quality and response instances, Bhagat stated. “Now we’ve come to a spot the place, when it comes to eval, we’re seeing as little as 5% distinction between the frontier fashions, and a few of these fine-tuned on system fashions,” he stated, including that speeds on newer chips are actually “one-third of what we get within the cloud.”
Since its launch in 2017, SpotDraft stated it has reached greater than 700 prospects, up from round 400 in February final yr, and counts Apollo.io, Panasonic, Zeplin, and Whatfix amongst its customers. The corporate stated adoption is rising on its contract lifecycle administration platform, with prospects now processing over 1 million contracts yearly, contract volumes rising 173% year-over-year, and practically 50,000 month-to-month lively customers. It additionally expects 100% year-over-year income development in 2026, after rising 169% in 2024 and posting an analogous development price in 2025, although it didn’t share particular income figures.
SpotDraft plans to make use of the brand new capital to deepen its product and AI capabilities and broaden its enterprise presence throughout the Americas, the EMEA area (Europe, Center East, and Africa), and India, Bijapur stated, including that Qualcomm’s involvement extends past financing into joint improvement and go-to-market efforts for on-device deployments. The startup’s on-device workflow is at present obtainable to a restricted set of shoppers, and the founders count on it to broaden extra broadly as appropriate AI PC {hardware} turns into extra broadly obtainable.
Bengaluru- and New York-based SpotDraft stated it has a workforce of 300-plus workers, together with 15–20 within the U.S., the place COO Akshay Verma is predicated, and 4 to 5 within the UK, with the remainder of the workforce in Bengaluru.
Thus far, the startup has raised $92 million, together with the most recent Qualcomm Ventures funding. Its earlier traders embrace Vertex Development Singapore, Trident Development Companions, Xeed VC, Arkam Ventures, and Prosus Ventures.
