As demand grows for privacy-first enterprise AI that can run without sending sensitive data to the cloud, SpotDraft has raised $8 million from Qualcomm Ventures in a strategic Series B extension. This funding will scale its on-device contract review technology for regulated legal workflows. The extension values SpotDraft at approximately $380 million, nearly double its $190 million valuation following a $56 million Series B round in February of last year.
Enterprises in regulated sectors are rapidly testing generative AI, but privacy, security, and data governance concerns continue to slow adoption for sensitive workflows. This is especially true in legal, where contracts often contain privileged information, intellectual property, pricing, and deal terms. Industry research consistently flags data security and privacy as key barriers to wider generative AI deployment in professional services. This has pushed vendors like SpotDraft to pursue architectures that keep core contract intelligence on the user’s device rather than routing it through the cloud.
At Qualcomm’s Snapdragon Summit 2025, SpotDraft demonstrated its VerifAI workflow running end-to-end on Snapdragon X Elite-powered laptops. The system executes contract review and edits offline while keeping the document on the local machine. The company noted that internet connectivity is still required for login, licensing, and collaboration features, but contract review, risk scoring, and redlining can run fully offline without sending documents to the cloud.
SpotDraft sees legal as an early proving ground for on-device enterprise AI, arguing that sensitive contracts often cannot be routed through external cloud models due to privacy, security, and compliance constraints. The company believes the future of enterprise AI includes models that operate close to the document for privacy-critical, latency-sensitive, and legally sensitive tasks.
SpotDraft says VerifAI’s on-device capability extends beyond simply generating summaries. The tool is designed to apply playbooks and recommendations directly inside Microsoft Word, integrating with the way legal teams already work. It compares a contract against an organization’s guidelines, playbooks, and prior policies.
The demand for on-device AI is emerging most clearly in tightly regulated sectors like defense and pharma, where internal security reviews and data residency requirements can slow or block the use of cloud-based AI tools for sensitive documents. On-device models have rapidly closed the gap with cloud-based systems in both output quality and response times. Speeds on newer chips are now reportedly one-third of what is achieved in the cloud.
Since its launch in 2017, SpotDraft has reached more than 700 customers, up from around 400 in February last year. Its users include Apollo.io, Panasonic, Zeplin, and Whatfix. 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, with 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 rate in 2025.
SpotDraft plans to use the new capital to deepen its product and AI capabilities and expand its enterprise presence across the Americas, the EMEA region, and India. Qualcomm’s involvement extends beyond financing into joint development and go-to-market efforts for on-device deployments. The on-device workflow is currently available to a limited set of customers, with broader expansion expected as compatible AI PC hardware becomes more widely available.
Bengaluru- and New York-based SpotDraft has a team of over 300 employees, including 15–20 in the U.S., four to five in the UK, with the remainder based in Bengaluru. To date, the startup has raised $92 million, including the latest Qualcomm Ventures investment. Its earlier investors include Vertex Growth Singapore, Trident Growth Partners, Xeed VC, Arkam Ventures, and Prosus Ventures.