As the demand grows for privacy-focused enterprise AI that operates without sending sensitive data to the cloud, SpotDraft has secured $8 million from Qualcomm Ventures in a strategic extension of its Series B funding. This investment aims to expand its on-device contract review technology tailored for regulated legal workflows.
According to SpotDraft, this extension brings its valuation to approximately $380 million, nearly doubling the $190 million post-money valuation it achieved after its $56 million Series B round in February of last year.
In regulated sectors, companies are quickly exploring generative AI, but concerns about privacy, security, and data governance are hindering its adoption, particularly in legal contexts where contracts often contain privileged information, intellectual property, and sensitive deal terms. Industry research has highlighted data security and privacy as significant obstacles to the broader deployment of generative AI in professional services, prompting companies like SpotDraft to develop architectures that maintain core contract intelligence on the user’s device, circumventing cloud storage.
At Qualcomm’s Snapdragon Summit 2025, SpotDraft showcased its VerifAI workflow functioning end-to-end on Snapdragon X Elite-powered laptops. The system performed contract reviews and edits offline while ensuring that documents stayed on the local machine. While some internet connectivity is necessary for login, licensing, and collaboration features, contract review, risk scoring, and redlining can all operate fully offline without cloud transmission.
SpotDraft views the legal space as an initial testing ground for on-device enterprise AI, arguing that sensitive contracts must often stay away from external cloud models due to privacy, security, and compliance issues.
“The future of enterprise AI has to involve tools that are proximity-sensitive to documents, considering privacy, latency, and legal aspects. Those will operate on-device,” said Shashank Bijapur, co-founder and CEO of SpotDraft, in a recent interview.
SpotDraft further explains that VerifAI’s on-device functionality goes beyond generating summaries. The tool is structured to integrate playbooks and recommendations directly in Microsoft Word, aligning with the existing workflows of legal teams. “VerifAI will assess a contract against your guidelines, your playbooks, and your previous policies,” added Madhav Bhagat, co-founder and CTO of SpotDraft.
Bijapur noted that the need for on-device AI is most prominent in highly regulated fields like defense and pharmaceuticals, where internal security reviews and data residency rules can impede the use of cloud AI tools for sensitive documents.
According to Bhagat, on-device models have significantly narrowed the performance gap with cloud-based solutions in terms of output quality and speed. “We’re seeing as little as a 5% difference between top-tier models and some finely-tuned on-device versions,” he remarked, mentioning that newer chips offer speeds that are now “one-third of what we see in the cloud.”
Since its launch in 2017, SpotDraft has expanded its customer base to over 700, up from roughly 400 in February last year. Notable users include Apollo.io, Panasonic, Zeplin, and Whatfix. The startup reports that its contract lifecycle management platform is gaining traction, with customers processing more than 1 million contracts annually and contract volumes increasing by 173% year-over-year, along with nearly 50,000 monthly active users. SpotDraft anticipates achieving 100% year-over-year revenue growth in 2026, following 169% growth in 2024 and similar rates in 2025, though specific revenue figures weren’t disclosed.
SpotDraft plans to utilize the new funds to enhance its product and AI capabilities while broadening its enterprise reach across the Americas, EMEA (Europe, the Middle East, and Africa), and India. Bijapur noted that Qualcomm’s involvement goes beyond funding to include joint development and market strategies for on-device implementations. Currently, the startup’s on-device workflow is accessible to a limited number of customers, with expectations for broader availability as compatible AI PC hardware becomes commonplace.
“SpotDraft’s ability to securely deploy their proprietary models on-device using Snapdragon platforms marks a significant step forward for a privacy-sensitive industry,” stated Quinn Li, senior vice president of Qualcomm Technologies and global head of Qualcomm Ventures.
Based in Bengaluru and New York, SpotDraft employs over 300 people, including 15-20 in the U.S. and four to five in the UK, with the remainder based in Bengaluru. To date, the startup has raised a total of $92 million, including the latest investment from Qualcomm Ventures. Its earlier backers include Vertex Growth Singapore, Trident Growth Partners, Xeed VC, Arkam Ventures, and Prosus Ventures.
