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 Collection B extension to scale its on-device contract evaluation tech for regulated authorized workflows.
The extension values SpotDraft at round $380 million, the startup advised TechCrunch, practically double its $190 million post-money valuation following its $56 million Collection B in February of final yr.
Throughout regulated sectors, enterprises have moved shortly to check generative AI, however privateness, safety, and information 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. Trade 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 maintain core contract intelligence on the person’s machine fairly than routing it by means 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 evaluation and edits offline whereas preserving the doc on the native machine. SpotDraft mentioned web connectivity remains to be required for login, licensing, and collaboration options, however contract evaluation, 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 means of exterior cloud fashions as a consequence of privateness, safety, and compliance constraints.
“The way forward for how enterprise AI goes to be — proper now, there’s acquired to be AI that’s near the doc, which is privateness important, latency delicate, [and] legally delicate, and people are the issues that can transfer on machine,” mentioned 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 use playbooks and suggestions instantly inside Microsoft Phrase, the way in which authorized groups already work. “VerifAI will evaluate a contract towards your pointers, your playbooks, your prior insurance policies,” mentioned Madhav Bhagat (pictured above, proper), co-founder and CTO of SpotDraft.
Techcrunch occasion
San Francisco
|
October 13-15, 2026
Bijapur advised 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 information 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 methods, each in output high quality and response occasions, Bhagat mentioned. “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 machine fashions,” he mentioned, including that speeds on newer chips are actually “one-third of what we get within the cloud.”
Since its launch in 2017, SpotDraft mentioned 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 mentioned 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 lively customers. It additionally expects 100% year-over-year income development in 2026, after rising 169% in 2024 and posting an identical development charge 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 develop its enterprise presence throughout the Americas, the EMEA area (Europe, Center East, and Africa), and India, Bijapur mentioned, 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 accessible to a restricted set of consumers, and the founders count on it to develop extra broadly as suitable AI PC {hardware} turns into extra extensively accessible.
“SpotDraft’s capacity to deploy their proprietary fashions securely on-device utilizing Snapdragon platforms represents a significant development for a privacy-critical trade,” mentioned Quinn Li, senior vice chairman, Qualcomm Applied sciences, and world head of Qualcomm Ventures.
Bengaluru- and New York-based SpotDraft mentioned it has a crew of 300-plus staff, 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 this point, the startup has raised $92 million, together with the most recent Qualcomm Ventures funding. Its earlier traders embrace Vertex Progress Singapore, Trident Progress Companions, Xeed VC, Arkam Ventures, and Prosus Ventures.