Privacy-First AI: SpotDraft Raises $8 Million to Enhance On-Device Contract Review
Enterprise technology is increasingly prioritizing privacy, particularly for businesses handling sensitive information. SpotDraft, a contract management startup, recently secured $8 million in a Series B extension from Qualcomm Ventures. The funding will support the expansion of its on-device contract review technology, designed to meet the needs of regulated industries.
Growing Momentum
The latest funding round nearly doubled SpotDraft’s valuation to around $400 million, up from $190 million last year. This increase reflects investor confidence and highlights the rising demand for privacy-focused AI solutions in enterprise environments.
Organizations are adopting generative AI at a rapid pace, yet concerns over data privacy, security, and governance can slow implementation, especially in legal and compliance areas. Contracts often contain sensitive information, intellectual property, and critical pricing data. SpotDraft’s solution allows companies to process such documents securely on local devices rather than relying entirely on cloud infrastructure.
How the Technology Works
At Qualcomm’s Snapdragon Summit, SpotDraft demonstrated its VerifAI workflow. The technology enables users to perform contract reviews offline, keeping sensitive documents on the local device. While internet access is needed for login and collaboration features, core functions like risk scoring and redlining operate without cloud involvement.
Shashank Bijapur, SpotDraft co-founder and CEO, emphasized the importance of on-device AI: “Contracts are privacy-critical and legally sensitive. They cannot simply be processed in the cloud.” By addressing these concerns, SpotDraft provides enterprises with a secure and efficient approach to contract management.
Integration and Usability
VerifAI integrates with Microsoft Word, allowing legal teams to work within familiar environments. Madhav Bhagat, co-founder and CTO, explained, “VerifAI compares a contract against your guidelines, playbooks, and prior policies.” This functionality streamlines the review process and enhances accuracy, enabling users to make informed decisions confidently.
Security and Performance
For industries like pharmaceuticals and defense, conventional cloud-based AI often fails to meet internal security requirements. On-device models reduce reliance on external servers while maintaining speed and efficiency. According to Bhagat, new chip technologies allow on-device processing speeds that are only slightly behind cloud systems, with minimal difference in performance or quality.
Market Growth
Founded in 2017, SpotDraft now serves over 700 clients, up from 400 the previous year. Clients include Apollo.io, Panasonic, and Whatfix. The company processes more than one million contracts annually and reported 173% year-over-year growth in volume. SpotDraft projects revenue growth of 100% for 2026, demonstrating strong market demand.
Looking Ahead
The new funding will support further AI development and expansion into the Americas, EMEA, and India. Qualcomm Ventures is collaborating with SpotDraft on product development and strategies for broader deployment of on-device features. Quinn Li, Qualcomm Ventures’ senior vice president, noted, “Their ability to deploy proprietary models securely on-device represents a meaningful advancement for privacy-critical industries.”
The Bigger Picture
SpotDraft’s approach illustrates how privacy-focused technology can enhance efficiency while meeting legal and ethical standards. As companies continue digital transformation, tools that protect sensitive data are becoming essential.
Conclusion
SpotDraft’s journey reflects the evolving intersection of AI, enterprise technology, and data privacy. By enabling secure on-device contract review, the startup offers businesses a model for integrating AI without compromising sensitive information. This innovation signals a future where technology adoption and privacy can go hand in hand, providing legal teams and enterprises with safe, effective tools to manage critical operations.
