Qualcomm Ventures backs SpotDraft, valuation nears $400

SpotDraft has raised $8 million from Qualcomm Ventures in a strategic extension of its Series B round, valuing the company at around $380 million—nearly double its $190 million post-money valuation following a $56 million Series B funding in February 2025.

The funding comes as enterprises across regulated industries experiment with generative AI, even as concerns about privacy, security, and data governance continue to slow adoption for sensitive workflows. In legal teams in particular, contracts often contain privileged information, intellectual property, pricing details and deal terms, making cloud-based AI tools difficult to deploy.

Industry research has consistently identified data security and privacy as significant barriers to the wider adoption of GenAI in professional services. In response, SpotDraft is pursuing an on-device architecture that keeps contract intelligence on the user’s device, rather than routing data through external cloud models.

“The future of enterprise AI is going to be AI that is close to the document, privacy-critical, latency-sensitive and legally sensitive, and those are the workloads that will move on device,” Shashank Bijapur, co-founder and CEO of SpotDraft, told TechCrunch.

SpotDraft said its VerifAI product goes beyond generating summaries, applying playbooks and recommendations directly within Microsoft Word, where legal teams already do most of their work. According to Bijapur, demand for on-device AI is most visible in highly regulated sectors such as defence and pharmaceuticals, where internal security reviews and data residency rules can restrict the use of cloud-based AI tools.

The company plans to use the fresh capital to deepen its product and AI capabilities and expand its enterprise footprint across the US, EMEA (Europe, the Middle East, and Africa) and India. While its on-device workflow is currently available to a limited set of customers, SpotDraft expects broader adoption as AI-enabled PC hardware becomes more widely available.

Bengaluru- and New York-based SpotDraft employs more than 300 people, including 15–20 staff in the US, four to five in the UK, and the majority of its workforce in Bengaluru.