SpotDraft has secured an $8 million strategic investment from Qualcomm Ventures, nearly doubling its valuation to approximately $380 million. This Series B extension is aimed at scaling the company's on-device artificial intelligence for contract review, addressing a critical need for privacy in regulated industries. The funding highlights a growing market shift toward AI solutions that can operate without sending sensitive corporate data to the cloud.
Addressing Enterprise AI's Privacy Hurdle
The adoption of generative AI in professional services has been hampered by significant concerns over data security and privacy. Enterprises, particularly in legal, defense, and pharmaceutical sectors, are hesitant to process sensitive documents through cloud-based models. These contracts often contain privileged information, intellectual property, and confidential deal terms, making data governance a primary barrier to innovation.
A New Paradigm with On-Device Contract Intelligence
SpotDraft's solution, VerifAI, directly confronts these challenges by running its contract analysis engine entirely on a user's local machine. Demonstrated on Snapdragon X Elite-powered laptops, the technology performs complex tasks like risk scoring and redlining offline. This on-device architecture ensures that confidential documents never leave the endpoint, satisfying stringent internal security and data residency requirements.
The system is designed for seamless integration, operating as a plugin within Microsoft Word to align with existing legal workflows. VerifAI compares contracts against a company’s established playbooks and policies to provide contextual recommendations and edits. According to the company, its fine-tuned on-device models achieve performance within 5% of leading cloud-based systems but with significantly lower latency.
The Strategic Alliance with Qualcomm Ventures
Qualcomm's investment extends beyond capital, marking a strategic partnership to champion the capabilities of AI-powered PCs in the enterprise. The collaboration is a key validation for on-device AI, showcasing how complex professional workloads can be executed securely and efficiently offline. This alliance positions legal tech as a proving ground for the next generation of enterprise computing hardware.
The two companies plan to pursue joint go-to-market strategies and technical co-development to further optimize VerifAI for Snapdragon platforms. This effort will focus on enhancing performance and power efficiency, ensuring that legal professionals can reliably review contracts on the go. The partnership underscores a shared vision where critical AI tasks migrate from the data center to the user's device.
Impressive Growth and Future Outlook
SpotDraft has demonstrated significant market traction, growing its customer base to over 700 companies, including notable brands like Panasonic and Apollo.io. The platform now processes over one million contracts annually, with contract volumes increasing 173% year-over-year. This momentum is complemented by a user base of nearly 50,000 monthly active users, signaling strong adoption.
With total funding now at $92 million, SpotDraft plans to use the new capital to deepen its AI capabilities and expand its enterprise footprint. The company is targeting growth across the Americas, EMEA, and India, with its on-device solution set to become more widely available as AI PC hardware proliferates. This strategic expansion is timed to capitalize on the enterprise hardware refresh cycle.
SpotDraft's latest funding round and partnership with Qualcomm Ventures signal a pivotal moment for enterprise AI, prioritizing privacy without compromising functionality. By moving complex legal analysis to the device, the company offers a compelling solution for regulated industries and sets a new standard for secure AI. This on-device approach could soon become a blueprint for other data-sensitive workflows in finance, healthcare, and beyond.