Qualcomm backs SpotDraft to scale on-device contract AI with valuation doubling toward $400M

In response to increasing demand for secure, privacy-centric enterprise AI solutions, SpotDraft has successfully raised $8 million from Qualcomm Ventures. This funding is part of a strategic Series B extension aimed at enhancing its on-device contract review technology, particularly for industries with stringent regulatory requirements. This latest investment values SpotDraft at approximately $380 million, a significant increase from its previous valuation of $190 million following a $56 million Series B round in February 2022. As various sectors rapidly explore generative AI capabilities, concerns regarding privacy, security, and data governance have hindered the implementation of these technologies in sensitive environments, especially within the legal domain where contracts often contain confidential information. SpotDraft's approach focuses on maintaining contract intelligence on the user's device, thereby avoiding the need to route sensitive documents through the cloud. During Qualcomm’s Snapdragon Summit 2025, the startup showcased its VerifAI workflow, which operates entirely offline on Snapdragon X Elite-powered laptops, allowing for contract reviews and edits without internet access. While connectivity is necessary for login and collaboration, the core functionalities of contract evaluation, risk assessment, and redlining can function independently of cloud services. SpotDraft identifies the legal sector as a critical testing ground for on-device enterprise AI, emphasizing the need for such solutions due to the privacy, security, and compliance challenges that traditional cloud models present. Co-founder and CEO Shashank Bijapur highlighted the increasing demand for AI that is closely integrated with sensitive documents, stressing that future enterprise AI must be both privacy-aware and latency-sensitive. The VerifAI tool not only generates summaries but also incorporates legal teams’ existing practices, allowing users to apply guidelines and recommendations directly within Microsoft Word. Co-founder and CTO Madhav Bhagat noted that the tool can evaluate contracts against established playbooks and policies, enhancing compliance and efficiency. SpotDraft has reported a significant increase in its customer base, now exceeding 700, up from 400 in the previous year. The company processes over 1 million contracts annually, with a staggering 173% growth in contract volumes year-over-year and nearly 50,000 active users each month. Anticipating a 100% revenue growth in 2026, SpotDraft aims to further develop its product and AI capabilities with the new funding, as well as expand its presence in the Americas, EMEA, and India. With a total funding of $92 million to date, including the latest investment from Qualcomm, SpotDraft is poised to enhance its on-device AI offerings, which are currently accessible to a select group of clients. As compatible AI PC hardware becomes more prevalent, the company expects to broaden the reach of its innovative workflow solutions.