SpotDraft taps AI to help streamline your contract management
More and more legal experts are embracing AI, research shows. Around Recent polls from Legaltech Company Clio79% of companies used some form of AI in their casework last year, up from just 19% in 2023. Despite skepticism about technologyIn-house lawyers also expressed interest. One survey Almost half of lawyers suggest that AI believes it could reduce costs for the department.
LegalTech providers pop up left and right to meet demand. SpotDraftfocusing on automating contracts and building management software, and is one such relative newcomer. Founded in 2017, Spotdraft sells tools to help internal legal teams simplify contract tasks.
Shashank Bijapur, Madhav Bhagat and Rohith Salim were on the launch team at Spotdraft. The company’s CEO, Bijapur, says the idea for Spotdraft came to him when he was an associate at White & Case, a Bengaluru-based law firm and dealt with a massive amount of corporate contracts.
SpotDraft’s platform uses AI to extract important details and clauses from contracts, provide a summary of changes, and propose follow-up tasks. The Unified Task Center will display upcoming deadlines, update reminders, and personal and team work, leaving the organization organized, at least in theory.
Verifai, one of SpotDraft’s AI-powered features, tap on AI to see your contract for the selected guide or template. Another click-through keeps all contract agreements in a dedicated, centralized repository, allowing users to search and report.
SpotDraft competes for clients LinkSquares, Lexion owned by docusign, Workday’s Evisortand filevine. But according to Bijapur, it holds its own. Spotdraft currently has around 400 customers, and last year’s revenues increased by 169% compared to the previous year.
“We believe 2025 will be an inflection point for the Team Spot Draft,” says Bijapur. “We are strongly committed to deepening the use of AI in our products to unlock efficiency and drive innovation.”
Investors appear to be happy with Spotdraft’s growth trajectory. This week, the company announced it had raised $54 million in the Series B round, led by Vertex Ventures Singapore, with participation from Trident Partners.
The broader Legaltech sector would not have done anything harmful to see the infusion of funds after a few rough quarters. In 2024, Legaltch’s VC funding reached $2.6 billion. Investment database pitchup from a decrease of less than $1 billion invested in 2023.
With the company’s total increased to just $80 million, the new cash will be poured into R&D, market expansion, and Spotdraft’s 250 workforce (Spotdraft’s HQ) and Bengaluru throughout New York.
According to Bijapur, Spotdraft is developing an “agent solution” to help in-house lawyers achieve “strategic business outcomes.” He won’t reveal exactly what the solution will take, but of course AI is involved.
“Traditional legal work is bound by the “hourly dollar” model where inefficiencies are often burned into the system,” Bijapur said. “Agent solutions interact with other tools used by internal teams, which reduces the time spent learning and configuring the tools, allowing teams to focus on strategic work.”