With increasing demand for enterprise AI solutions that prioritize privacy and operate without transmitting sensitive data to the cloud, SpotDraft has secured an $8 million strategic Series B extension from Qualcomm Ventures. This funding will support the scaling of its on-device contract review technology designed for regulated legal workflows.

Across regulated industries, businesses have been quick to explore generative AI, yet concerns over privacy, security, and data governance continue to hinder its adoption for sensitive tasks. This is particularly true in the legal field, where contracts often contain privileged information, intellectual property, pricing details, and confidential deal terms. Industry studies consistently identify data security and privacy as major obstacles to broader GenAI implementation in professional services. This has led providers like SpotDraft to develop architectures that keep essential contract intelligence on the user's own device, avoiding the need to route data through the cloud.

At the Snapdragon Summit 2025, SpotDraft showcased its VerifAI workflow operating entirely on laptops powered by Snapdragon X Elite processors. The demonstration highlighted the ability to perform contract review and edits offline, with the document remaining on the local machine. The company clarified that while internet connectivity is still necessary for login, licensing, and collaboration functions, core activities like contract review, risk scoring, and redlining can function completely offline without ever sending documents to the cloud.

SpotDraft views the legal sector as an initial testing ground for on-device enterprise AI, contending that sensitive contracts frequently cannot be processed by external cloud models due to strict privacy, security, and compliance requirements. "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," explained Shashank Bijapur, co-founder and CEO of SpotDraft.

The company emphasizes that VerifAI's on-device capability goes beyond simple summarization. The tool is engineered to apply specific playbooks and recommendations directly within Microsoft Word, aligning with the existing workflows of legal teams. "VerifAI will compare a contract against your guidelines, your playbooks, your prior policies," stated Madhav Bhagat, co-founder and CTO of SpotDraft.

Bhagat also noted that on-device models have made significant strides, rapidly closing the performance gap with cloud-based systems in both output quality and response speed. "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, adding that processing speeds on newer chips are now "one-third of what we get in the cloud."

Since its founding in 2017, SpotDraft has grown its customer base to over 700, a notable increase from approximately 400 in February of last year. Its clients now include Apollo.io, Panasonic, Zeplin, and Whatfix. Adoption of its contract lifecycle management platform is accelerating, with customers now processing more than 1 million contracts annually. The company has seen contract volumes surge by 173% year-over-year and now serves nearly 50,000 monthly active users.

Financially, SpotDraft anticipates 100% year-over-year revenue growth in 2026, following a 169% increase in 2024 and a similar projected growth rate for 2025, though specific revenue figures were not disclosed.

The new capital will be directed toward enhancing product and AI capabilities and expanding the company's enterprise footprint across the Americas, the EMEA region, and India. Bijapur highlighted that Qualcomm's involvement extends beyond mere financing to include joint development and collaborative go-to-market strategies for on-device deployments.

Currently, the on-device workflow is available to a select group of customers, with plans for broader expansion as compatible AI PC hardware becomes more commonplace.

Headquartered in Bengaluru and New York, SpotDraft employs over 300 people. Its team includes 15-20 staff in the U.S., where COO Akshay Verma is located, four to five in the UK, and the remainder based in Bengaluru.

To date, the startup has raised a total of $92 million, inclusive of this latest investment from Qualcomm Ventures. Its previous investors include Vertex Growth Singapore, Trident Growth Partners, Xeed VC, Arkam Ventures, and Prosus Ventures.