As demand grows for privacy-first enterprise AI that may run with out sending delicate information to the cloud, SpotDraft has raised $8 million from Qualcomm Ventures in a strategic Sequence B extension to scale its on-device contract overview 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 Series B in February of final yr.
Throughout regulated sectors, enterprises have moved rapidly to check generative AI, however privateness, safety, and information governance issues proceed to gradual adoption for delicate workflows — particularly in authorized, the place contracts can embrace privileged information, mental property, pricing, and deal phrases. Business analysis has constantly flagged information safety and privateness as key limitations to wider GenAI deployment in skilled providers, pushing distributors like SpotDraft to pursue architectures that hold core contract intelligence on the consumer’s gadget somewhat 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 overview and edits offline whereas conserving the doc on the native machine. SpotDraft stated web connectivity is nonetheless required for login, licensing, and collaboration options, however contract overview, threat 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 external cloud fashions due to privateness, safety, and compliance constraints.
“The way forward for how enterprise AI is going to be — proper now, there’s obtained to be AI that is shut to the doc, which is privateness important, latency delicate, [and] legally delicate, and people are the issues that can transfer on gadget,” 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 software designed to apply playbooks and suggestions straight inside Microsoft Phrase, the manner 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 inside safety critiques and information residency necessities can gradual or block the use 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 occasions, Bhagat stated. “Now we’ve come to a spot the place, when it comes to eval, we are seeing as little as 5% distinction between the frontier fashions, and a few of these fine-tuned on gadget fashions,” he stated, including that speeds on newer chips are now “one-third of what we get in the cloud.”
Since its launch in 2017, SpotDraft stated it has reached greater than 700 clients, 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 clients now processing over 1 million contracts yearly, contract volumes rising 173% year-over-year, and practically 50,000 month-to-month energetic customers. It additionally expects 100% year-over-year income development in 2026, after rising 169% in 2024 and posting an analogous development charge in 2025, although it did not share particular income figures.
SpotDraft plans to use the new capital to deepen its product and AI capabilities and develop 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 presently obtainable to a restricted set of consumers, and the founders anticipate it to develop extra broadly as suitable AI PC {hardware} turns into extra extensively obtainable.
Bengaluru- and New York-based SpotDraft stated it has a staff of 300-plus workers, together with 15–20 in the U.S., the place COO Akshay Verma is based mostly, and 4 to 5 in the UK, with the remainder of the workforce in Bengaluru.
To this point, the startup has raised $92 million, together with the newest Qualcomm Ventures funding. Its earlier buyers include Vertex Progress Singapore, Trident Progress Companions, Xeed VC, Arkam Ventures, and Prosus Ventures.
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