SpotDraft raises $54 million from Vertex Growth, Trident Partners

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SpotDraft, a Bengaluru-based startup specializing in contract lifecycle management (CLM) software, has raised $54 million in its Series B funding round, led by Vertex Growth Singapore and Trident Partners. Existing investors, including Xeed VC, Arkam Ventures, and Prosus Ventures, also participated, reflecting strong support for SpotDraft’s growth. This funding follows the company’s previous $26 million raised in a Series A round in March 2023. Founded in 2017, SpotDraft offers AI-powered solutions to streamline contract workflows for legal teams, making the process faster, more efficient, and less error-prone. The platform has experienced exponential growth in revenue and customers in the past two years. With the new capital, SpotDraft plans to expand its market presence, enhance its AI-driven offerings, and scale its operations and talent base across Bengaluru and New York.

Overview of SpotDraft: Working Model and Revenue Model

SpotDraft is revolutionizing the contract management space by offering an AI-driven Contract Lifecycle Management (CLM) platform, specifically tailored to in-house legal teams. The platform comprehensively handles every aspect of contract management, including AI-assisted redlining, e-signatures, intelligent contract repositories, and third-party document management, among other features. By automating traditionally time-consuming tasks, it significantly frees up legal teams, enabling them to focus on high-priority responsibilities such as strategy and risk mitigation. Furthermore, SpotDraft generates revenue through a subscription-based model, where companies pay a recurring fee to access its CLM platform. This model caters to businesses of various sizes, ranging from mid-market companies to large enterprises. Additionally, SpotDraft’s customer base spans over 400 organizations across multiple industries, including technology, finance, and more. As a result, the company can expand its reach while fostering long-term relationships with its clients.

The Founders and Their Background

SpotDraft, founded in 2017 by Shashank Bijapur, Madhav Bhagat, and Rohith Salim, combines strong technical and legal expertise. Shashank, a Harvard Law graduate, practiced law in New York, gaining deep insights into legal team needs. Madhav, a Carnegie Mellon alumnus, previously worked at Google, where he developed the technical expertise to create AI-driven solutions for SpotDraft. Rohith, also from Carnegie Mellon, serves as Chief Product Officer, focusing on product development and user experience. Additionally, Akshay Verma, a legal industry veteran with experience at Meta and Coinbase, recently joined as Chief Operating Officer. Together, their diverse backgrounds enable SpotDraft to deliver an efficient, scalable platform that addresses the unique needs of in-house legal teams, combining legal knowledge, product development, and technical innovation.

Funding Background and Growth

SpotDraft’s journey to securing Series B funding began in 2023 when it raised $26 million in a Series A round. The company used the funding to further develop its product and expand its presence in the global market. The Series A round marked a milestone in the company’s early stages, providing essential capital to enhance the platform’s capabilities and acquire more customers. The recent Series B funding round of $54 million, led by Vertex Growth Singapore and Trident Partners, signifies SpotDraft’s success in the contract management space. This funding round also saw participation from other major investors, including Xeed VC, Arkam Ventures, Prosus Ventures, and Premji Invest. With this new capital, SpotDraft aims to deepen its focus on AI integration into its platform, enhance product offerings, and expand its talent base.

SpotDraft’s Services and Products

SpotDraft’s flagship product is its AI-powered CLM platform, designed to assist in-house legal teams with contract management. The platform offers a range of features, including AI-assisted redlining, intelligent contract repository, e-signatures, and third-party document management. SpotDraft’s AI capabilities help identify potential risks, reducing errors and ensuring more accurate contract processes. The platform also offers tools for managing clickwrap agreements, third-party contracts, and automating reviews. These features streamline workflows, helping businesses close deals faster and minimize contract-related risks. Recently, SpotDraft introduced new products like VerifAI and ClickThrough, which have further strengthened its position as a preferred partner for mid-market companies. These innovations aim to improve the user experience by focusing on product enhancements and AI integration, making SpotDraft a comprehensive solution for contract lifecycle management.

Market Expansion and Global Presence

SpotDraft’s business model and innovative technology have allowed it to scale rapidly. The company currently operates out of Bengaluru and New York, with over 250 employees across these offices. SpotDraft’s ability to serve clients globally has positioned it as a key player in the contract management market, especially for in-house legal teams. As part of its growth strategy, SpotDraft plans to expand its talent base, especially in leadership positions. The company is focused on recruiting top-tier professionals who align with its vision and can contribute to its expansion. Its expansion into global markets, combined with AI-powered contract management solutions, has allowed SpotDraft to capture a growing share of the legal tech market.

Industry Response and Customer Feedback

SpotDraft has received positive feedback from its users, who have praised the platform for its ability to enhance legal operations and streamline contract processes. Jonathan Franz, Head of Legal at Crunchbase, highlighted the platform’s ability to simplify contract reviews, automate high-volume contracts, and accelerate deal closures. Legal teams have reported significant time savings, enabling them to focus on more strategic tasks while SpotDraft handles routine tasks. SpotDraft’s ease of implementation and the confidence it provides to legal teams have made it an attractive choice for organizations looking to improve their legal workflows. Customers have also praised the AI-driven approach, which offers greater accuracy and efficiency in contract management.

Learning for Startups and Entrepreneurs

The success story of SpotDraft offers valuable insights for startups and entrepreneurs in the tech space. One key takeaway is the importance of focusing on a specific niche. SpotDraft’s commitment to solving the pain points of in-house legal teams allowed it to carve out a unique space in the legal tech market. Entrepreneurs should also focus on building a team with complementary skills. SpotDraft’s founders leveraged their backgrounds in law, technology, and product management to create a platform that addresses real-world challenges. Furthermore, startups should recognize the importance of securing funding at key stages of their growth. SpotDraft’s ability to raise Series A and Series B funding rounds demonstrates the importance of building investor confidence by showing significant traction, product-market fit, and growth potential.

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