SpotDraft Secures $8 Million from Qualcomm Ventures to Advance On-Device AI in Legal Tech
In a significant move underscoring the growing demand for privacy-centric enterprise AI solutions, SpotDraft, an AI-driven contract lifecycle management (CLM) platform, has secured an $8 million investment from Qualcomm Ventures. This strategic Series B extension propels the company’s valuation to approximately $380 million, nearly doubling its previous valuation of $190 million following a $56 million Series B round in February 2025.
Addressing Privacy and Security in Legal AI
The legal sector, characterized by its stringent privacy, security, and compliance requirements, has been cautious in adopting generative AI technologies. Contracts often contain sensitive information, including privileged communications, intellectual property details, pricing structures, and critical deal terms. Traditional cloud-based AI solutions pose potential risks by transmitting such confidential data over the internet, raising concerns about data breaches and unauthorized access.
SpotDraft’s innovative approach focuses on on-device AI processing, ensuring that sensitive legal documents remain within the confines of the user’s hardware. This method not only enhances data security but also addresses latency issues associated with cloud processing. By keeping the AI operations local, SpotDraft offers a solution that aligns with the privacy mandates of regulated industries.
Demonstrating On-Device Capabilities
At Qualcomm’s Snapdragon Summit 2025, SpotDraft showcased its VerifAI workflow operating seamlessly on Snapdragon X Elite-powered laptops. This demonstration highlighted the platform’s ability to perform comprehensive contract reviews and edits offline, maintaining all document data on the local machine. While internet connectivity is still required for functions like user authentication, licensing, and collaborative features, the core processes of contract review, risk assessment, and redlining can be executed entirely offline.
Shashank Bijapur, co-founder and CEO of SpotDraft, emphasized the significance of this development: The future of enterprise AI lies in proximity to the document. For tasks that are privacy-critical, latency-sensitive, and legally sensitive, on-device AI is the way forward.
Integration with Existing Legal Workflows
VerifAI’s on-device capabilities are designed to integrate seamlessly with existing legal workflows. Operating directly within Microsoft Word, the tool applies organizational guidelines, playbooks, and prior policies to contracts in real-time. Madhav Bhagat, co-founder and CTO of SpotDraft, elaborated: VerifAI compares a contract against your guidelines, your playbooks, your prior policies, ensuring consistency and compliance without the need for external processing.
Market Growth and Expansion Plans
Since its inception in 2017, SpotDraft has experienced substantial growth. The company now serves over 700 customers, a significant increase from approximately 400 in early 2025. Notable clients include Apollo.io, Panasonic, Zeplin, and Whatfix. The platform processes over one million contracts annually, with contract volumes growing 173% year-over-year and nearly 50,000 monthly active users. SpotDraft anticipates 100% year-over-year revenue growth in 2026, following a 169% increase in 2024 and a similar trajectory in 2025.
The recent funding will be utilized to enhance SpotDraft’s product offerings and AI capabilities further. Additionally, the company plans to expand its enterprise presence across the Americas, Europe, the Middle East, Africa (EMEA), and India. The partnership with Qualcomm extends beyond financial investment, encompassing joint development initiatives and go-to-market strategies for on-device deployments.
Strategic Partnership with Qualcomm
Qualcomm Ventures’ investment in SpotDraft signifies a shared vision for the future of on-device AI applications in enterprise settings. The collaboration aims to leverage Qualcomm’s expertise in hardware to optimize SpotDraft’s AI solutions for enhanced performance and security. This partnership is expected to accelerate the adoption of on-device AI in the legal sector and potentially other regulated industries.
Conclusion
SpotDraft’s recent funding and strategic partnership with Qualcomm Ventures mark a pivotal moment in the evolution of AI applications within the legal industry. By prioritizing on-device processing, SpotDraft addresses critical concerns related to data privacy and security, offering a robust solution tailored to the needs of legal professionals. As the company continues to innovate and expand, it sets a precedent for the integration of AI in sensitive and regulated sectors.
