Qualcomm Ventures Boosts SpotDraft with $8 Million Investment for On-Device Contract AI Innovation, Valuation Reaches $400 Million
In a strategic move aimed at catering to the rising demand for privacy-centric enterprise AI solutions, SpotDraft has successfully secured $8 million from Qualcomm Ventures in a Series B funding round. This investment is set to accelerate the development of SpotDraft’s on-device technology for contract review, specifically designed for regulated legal workflows.
As businesses in regulated sectors increasingly explore generative AI, they face significant hurdles related to privacy and security. The legal field, in particular, deals with sensitive contracts that often contain privileged information, including intellectual property and pricing strategies. Ongoing industry research highlights data governance as a critical obstacle to adopting AI in professional services, prompting companies like SpotDraft to focus on solutions that retain contract intelligence on local devices rather than relying on cloud processing.
During Qualcomm’s Snapdragon Summit 2025, SpotDraft showcased its VerifAI workflow, which efficiently operates on Snapdragon X Elite-powered laptops. This capability allows contract reviews and edits to be conducted offline while maintaining document security on the local machine. While internet access is still necessary for user authentication and collaborative features, core functionalities such as risk scoring and document redlining can function fully offline.
SpotDraft positions the legal sector as a testing ground for innovative on-device enterprise AI, asserting that the inherent sensitivity of contracts necessitates a shift away from traditional cloud models. “The future of enterprise AI requires proximity to the document, particularly in privacy-critical and legally-sensitive situations,” stated Shashank Bijapur, co-founder and CEO of SpotDraft.
The VerifAI tool is designed to integrate seamlessly within Microsoft Word, offering legal teams the ability to apply specific guidelines and recommendations directly to documents. Co-founder and CTO Madhav Bhagat emphasized that VerifAI actively compares contracts against established playbooks and policies.
Bhagat further noted advancements in on-device models, which have begun to match cloud-based systems in both output quality and operational speed. “Current evaluations show only a 5% performance gap between advanced models and those fine-tuned for on-device applications,” he said, pointing to improved speeds on modern chips.
Since its inception in 2017, SpotDraft has expanded its client base from approximately 400 to over 700, serving notable companies such as Apollo.io, Panasonic, and Whatfix. Its contract lifecycle management platform is processing over one million contracts annually, demonstrating a remarkable 173% year-over-year growth in contract volumes.
The company plans to utilize the newly acquired funding to enhance its product offerings and further establish its presence across the Americas, EMEA, and India. Bijapur mentioned that Qualcomm’s role extends beyond investment, encompassing collaborative efforts in product development and market strategy for on-device solutions. Currently, the on-device workflow is accessible to a select group of customers, with plans for broader distribution as compatible AI PC hardware becomes more prevalent.
Based in Bengaluru and New York, SpotDraft employs over 300 staff members globally, including personnel in the U.S. and the UK. With this latest funding round, SpotDraft’s total capital raised to date amounts to $92 million, including prior investments from Vertex Growth Singapore, Trident Growth Partners, and Prosus Ventures.
