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 Series B extension to scale its on-device contract assessment 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.
Across regulated sectors, enterprises have moved shortly to check generative AI, however privateness, safety, and knowledge governance considerations proceed to sluggish adoption for delicate workflows — particularly in authorized, the place contracts can embrace privileged info, mental property, pricing, and deal phrases. Industry analysis has constantly flagged knowledge safety and privateness as key boundaries to wider GenAI deployment in skilled companies, pushing distributors like SpotDraft to pursue architectures that hold core contract intelligence on the person’s gadget relatively than routing it by way of 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 assessment and edits offline whereas holding the doc on the native machine. SpotDraft stated web connectivity remains to be required for login, licensing, and collaboration options, however contract assessment, danger scoring, and redlining can run absolutely 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 way of exterior cloud fashions due to privateness, safety, and compliance constraints.
“The future of how enterprise AI is going to be — right now, there’s got to be AI that is close to the document, which is privacy critical, latency sensitive, [and] legally sensitive, and those are the things that will move on device,” 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 apply playbooks and proposals immediately inside Microsoft Word, the way in which authorized groups already work. “VerifAI will compare a contract against your guidelines, your playbooks, your prior policies,” stated Madhav Bhagat (pictured above, proper), co-founder and CTO of SpotDraft.
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SpotDraft’s VerifAI works in Microsoft WordImage Credits:SpotDraft
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 evaluations 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 programs, each in output high quality and response instances, Bhagat stated. “Now we’ve come to a place where, in terms of eval, we are seeing as little as 5% difference between the frontier models, and some of these fine-tuned on device models,” he stated, including that speeds on newer chips at the moment are “one-third of what we get in 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 firm 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 use the brand new capital to deepen its product and AI capabilities and broaden its enterprise presence throughout the Americas, the EMEA area (Europe, Middle East, and Africa), and India, Bijapur stated, including that Qualcomm’s involvement extends past financing into joint growth and go-to-market efforts for on-device deployments. The startup’s on-device workflow is at the moment out there to a restricted set of consumers, and the founders count on it to broaden extra broadly as suitable AI PC {hardware} turns into extra extensively out there.
Bengaluru- and New York-based SpotDraft stated it has a group of 300-plus workers, together with 15–20 within the U.S., the place COO Akshay Verma relies, and 4 to 5 within the UK, with the remainder of the workforce in Bengaluru.
To date, the startup has raised $92 million, together with the newest Qualcomm Ventures funding. Its earlier traders embrace Vertex Growth Singapore, Trident Growth Partners, Xeed VC, Arkam Ventures, and Prosus Ventures.
