Qualcomm backs SpotDraft to scale on-tool contract AI with valuation doubling in direction of $400M

As quiz grows for privateness-first enterprise AI that may perhaps stir with out sending sensitive data to the cloud, SpotDraft has raised $8 million from Qualcomm Ventures in a strategic Sequence B extension to scale its on-tool contract evaluation tech for regulated apt workflows.

The extension values SpotDraft at around $380 million, the startup informed TechCrunch, almost double its $190 million put up-cash valuation following its $56 million Sequence B in February of final year.

All the contrivance thru regulated sectors, enterprises beget moved speedily to test generative AI, but privateness, security, and knowledge governance concerns proceed to leisurely adoption for sensitive workflows — namely in apt, the build apart contracts can encompass privileged data, psychological property, pricing, and deal terms. Business study has continuously flagged data security and privateness as key boundaries to wider GenAI deployment in official products and services, pushing distributors care for SpotDraft to pursue architectures that preserve core contract intelligence on the actual person’s tool quite than routing it thru the cloud.

At Qualcomm’s Snapdragon Summit 2025, SpotDraft demonstrated its VerifAI workflow running stay-to-stay on Snapdragon X Elite-powered laptops, executing contract evaluation and edits offline whereas conserving the doc on the native machine. SpotDraft said data superhighway connectivity is serene required for login, licensing, and collaboration elements, but contract evaluation, chance scoring, and redlining can stir fully offline with out sending documents to the cloud.

SpotDraft sees apt as an early proving ground for on-tool enterprise AI, arguing that sensitive contracts continuously can now not be routed thru exterior cloud fashions ensuing from privateness, security, and compliance constraints.

“The vogue forward for the vogue enterprise AI is going to be — honest now, there’s got to be AI that’s shut to the doc, which is privateness critical, latency sensitive, [and] legally sensitive, and these are the issues that can pass on tool,” said Shashank Bijapur (pictured above, left), co-founder and CEO of SpotDraft, in an interview.

SpotDraft says VerifAI’s on-tool skill extends beyond merely producing summaries, with the instrument designed to apply playbooks and solutions straight internal Microsoft Phrase, the vogue apt teams already work. “VerifAI will compare a contract in opposition to your guidelines, your playbooks, your prior insurance policies,” said Madhav Bhagat (pictured above, honest), co-founder and CTO of SpotDraft.

Bijapur informed TechCrunch that the quiz for on-tool AI is emerging most clearly in tightly regulated sectors, along side defense and pharma, the build apart inner security reviews and knowledge residency requirements can leisurely or block the exercise of cloud-primarily based AI instruments for sensitive documents.

On-tool fashions beget speedily closed the gap with cloud-primarily based programs, both in output quality and response occasions, Bhagat said. “Now we’ve reach to a suppose the build apart, when it comes to eval, we’re seeing as minute as 5% inequity between the frontier fashions, and a majority of these fine-tuned on tool fashions,” he said, along side that speeds on newer chips are in truth “one-third of what we receive within the cloud.”

Since its originate in 2017, SpotDraft said it has reached bigger than 700 possibilities, up from around 400 in February final year, and counts Apollo.io, Panasonic, Zeplin, and Whatfix among its customers. The firm said adoption is rising on its contract lifecycle administration platform, with possibilities now processing over 1 million contracts every year, contract volumes growing 173% year-over-year, and almost 50,000 monthly active customers. It additionally expects 100% year-over-year income development in 2026, after growing 169% in 2024 and posting a identical development rate in 2025, though it did now not fragment instruct income figures.

SpotDraft plans to exercise the new capital to deepen its product and AI capabilities and amplify its enterprise presence across the Americas, the EMEA build apart of abode (Europe, Heart East, and Africa), and India, Bijapur said, along side that Qualcomm’s involvement extends beyond financing into joint pattern and shuffle-to-market efforts for on-tool deployments. The startup’s on-tool workflow is at relate readily obtainable to a restricted space of purchasers, and the founders quiz it to amplify extra broadly as care for minded AI PC hardware becomes extra broadly readily obtainable.

“SpotDraft’s skill to deploy their proprietary fashions securely on-tool the exercise of Snapdragon platforms represents a meaningful advancement for a privateness-critical industry,” said Quinn Li, senior vp, Qualcomm Technologies, and global head of Qualcomm Ventures.

Bengaluru- and New York-primarily based SpotDraft said it has a workers of 300-plus workers, along side 15–20 within the U.S., the build apart COO Akshay Verma is primarily primarily based, and four to 5 within the UK, with the remainder of the employees in Bengaluru.

To this point, the startup has raised $92 million, along side essentially the most original Qualcomm Ventures funding. Its earlier traders encompass Vertex Development Singapore, Trident Development Partners, Xeed VC, Arkam Ventures, and Prosus Ventures.