Highlights:
- SpotDraft’s software features AI-assisted redlining tools for collaborative contract editing and negotiation.
- In 2023, SpotDraft introduced VerifAI, a generative AI Word plug-in for legal teams to review contracts and ask open-ended questions.
Recently, an AI-powered contract lifecycle management platform, SpotDraft has raised USD 54 million in Series B funding, led by Vertex Growth and Trident Partners.
The company offers an AI-powered tool that helps corporate legal teams handle every aspect of contract management. It streamlines complex tasks, covering the entire contract lifecycle—from creation and negotiation to execution, monitoring, compliance, renewal, and termination.
SpotDraft’s software features AI-powered redlining tools, enabling multiple parties to collaboratively edit and negotiate contracts until a final agreement is reached. It also includes an intelligent contract repository that records change history, manages third-party documents and agreements, and tracks e-signatures.
Shashank Bijapur, Chief Executive, said, “We believe 2025 will be an inflection point for team SpotDraft. Apart from market expansion and talent growth, we’re strongly committed to deepening the use of AI in the product to help legal teams unlock efficiencies and drive innovation.”
Bijapur, a Harvard Law School graduate, and Madhav Bhagat, a Carnegie Mellon alumnus, co-founded the company in 2017. Prior to its launch, Bijapur practiced law in New York, while Bhagat worked at Google LLC.
In 2023, SpotDraft introduced VerifAI, a generative AI-powered Microsoft Word plug-in designed to help legal teams review contracts based on user-defined guidelines and answer open-ended queries. It streamlines the contract review process by ensuring compliance with specific standards, offering comments, and explaining the reasoning behind suggested modifications, making it easier for all parties to track and assess potential changes.
Crunchbase Inc.’s head of legal, Jonathan Franz, stated, “SpotDraft’s CLM platform has made a huge impact on our legal team’s time, workflows and efficiencies.” Franz highlighted the platform’s user-friendly design and its ability to automate high-volume contract tasks, enabling faster deal closures.
Artificial intelligence remains a focal point in the legal industry as investment continues to surge. In October, EvenUp Inc., an AI startup specializing in legal documents for personal injury cases, secured USD 135 million. In July, legal AI startup Harvey raised USD 100 million, while Eve, another AI-driven legal platform, secured USD 47 million. Additionally, in November, Ironclad Inc., a digital contract management company, introduced Jurist, an AI legal assistant designed for contract-related tasks.