As demand grows for privacy-first enterprise AI that can run without sending sensitive data to the cloud, SpotDraft [https://www.spotdraft.com/] has raised $8 million from Qualcomm Ventures in a strategic Series B extension to scale its on-device contract review tech for regulated legal workflows.

The extension values SpotDraft at around $380 million, according to the startup, nearly double its $190 million post-money valuation following its $56 million Series B [https://techcrunch.com/2025/02/12/spotdraft-taps-ai-to-help-streamline-contract-management/] in February of last year. Across regulated sectors, enterprises have moved quickly to test generative AI. Even so, privacy, security, and data governance concerns continue to slow adoption for sensitive workflows—especially in legal, where contracts can include privileged information, intellectual property, pricing, and deal terms. Industry research has consistently flagged [http://deloitte.com/us/en/insights/topics/digital-transformation/four-emerging-categories-of-gen-ai-risks.html] data security and privacy as key barriers to wider GenAI deployment in professional services, pushing vendors like SpotDraft to pursue architectures that keep core contract intelligence on the user’s device rather than routing it through the cloud.

SpotDraft’s Approach to On-Device AI for Legal Workflows

At Qualcomm’s Snapdragon Summit 2025, SpotDraft demonstrated [https://youtu.be/n1ApYIU2UTk?si=_5dqYiM4cpJcJXoz&t=2067] its VerifAI workflow running end-to-end on Snapdragon X Elite-powered laptops. The platform executed contract review and edits offline, always keeping the document on the local machine. While SpotDraft said internet connectivity is still required for login, licensing, and collaboration features, contract review, risk scoring, and redlining can all run fully offline without sending documents to the cloud. This advancement addresses data residency and privacy issues common in legal workflows.

SpotDraft sees legal as an ideal proving ground for on-device enterprise AI. The reason is that sensitive contracts often cannot be routed through external cloud models due to privacy, security, and compliance constraints. “The future of how enterprise AI is going to be—right now, there’s got to be AI that is close to the document, which is privacy critical, latency sensitive, [and] legally sensitive, and those are the things that will move on device,” said Shashank Bijapur, co-founder and CEO of SpotDraft.

VerifAI’s on-device capability extends beyond simply generating summaries. The tool is designed to apply playbooks and recommendations directly inside Microsoft Word, so legal teams can use it the way they already work. “VerifAI will compare a contract against your guidelines, your playbooks, your prior policies,” said Madhav Bhagat, co-founder and CTO of SpotDraft.

SpotDraft’s strategy focuses on sectors like defense and pharma, where internal security reviews and data residency requirements can slow adoption of cloud-based AI for sensitive documents. According to Bhagat, on-device models have rapidly closed the gap with cloud-based systems, both in output quality and response times. “Now we’ve come to a place where, in terms of eval, we are seeing as little as 5% difference between the frontier models, and some of these fine-tuned on device models,” he said, noting that speeds on new chips are “one-third of what we get in the cloud.”

Since its launch in 2017, SpotDraft has reached more than 700 customers, up from around 400 in February last year, and counts Apollo.io, Panasonic, Zeplin, and Whatfix among its users. Adoption is rising on its contract lifecycle management platform, with customers now processing over 1 million contracts annually. Contract volumes are growing 173% year-over-year, and it reports nearly 50,000 monthly active users. The company expects 100% year-over-year revenue growth in 2026, after growing 169% in 2024 and posting a similar growth rate in 2025, although it has not shared specific revenue figures.

Funding, Expansion and Future Development

SpotDraft plans to use the new capital to deepen its product and AI capabilities as well as expand its enterprise presence across the Americas, the EMEA region (Europe, Middle East, and Africa), and India, Bijapur stated. Qualcomm’s involvement extends beyond financing into joint development and go-to-market efforts for on-device deployments. The startup’s on-device workflow is available to a limited set of customers, and the founders expect broader expansion as compatible AI PC hardware becomes more common.

“SpotDraft’s ability to deploy their proprietary models securely on-device using Snapdragon platforms represents a meaningful advancement for a privacy-critical industry,” said Quinn Li, senior vice president, Qualcomm Technologies, and global head of Qualcomm Ventures.

Headquartered in Bengaluru and New York, SpotDraft currently has a team of over 300 employees, including 15 to 20 in the U.S., where COO Akshay Verma is based, and four to five in the UK. The rest of the workforce is in Bengaluru.

To date, the startup has raised $92 million, including the latest Qualcomm Ventures investment. Earlier investors include [https://techcrunch.com/2023/03/02/spotdraft-shows-contract-lifecycle-management-is-still-profitable-raises-26m/] Vertex Growth Singapore, Trident Growth Partners, Xeed VC, Arkam Ventures, and Prosus Ventures.

Tags: AI në pajisje, menaxhim kontratash, investime teknologjike, privatësi dhe siguri, sektor ligjor, zgjerim global