Spotdraft Shows That Contract Lifecycle Management Remains Profitable, Raises $26M
03/02/23, 2:22 PM
Location
bangaloreMoney raised
$26 million
Investors
100x Entrepreneur Fund, Riverwalk Fund, Arkam Ventures, 021 Capital, Prosus Ventures, Premji Invest
VCs see a rich opportunity in tools to manage the contract lifecycle. Two years ago, startups developing software that helps draft, manage and review contracts raised over $70 million in venture equity. While a relatively small space compared to, say, the market for customer relationship management ($44.9 billion in 2023), contract lifecycle management, or CLM, is growing at a rapid clip. Gartner predicts that legal tech spending — which includes CLM — will increase threefold by 2025.
Company Info
Location
bangalore, karnataka, india
Additional Info
Launched in 2017 by Shashank Bijapur, Madhav Bhagat and Rohith Salim, the company today closed a $26 million Series A funding round led by Premji Invest, which also had participation from Prosus Ventures, 021 Capital, Arkam Ventures, Riverwalk Fund and 100x Entrepreneur Fund. Bijapur claims that SpotDraft’s AI has processed over 1 million contracts to date — data that the company’s using (anonymously) to improve its algorithms. “Not all companies out there require a full-fledged CLM yet. With $30.5 million in the bank, SpotDraft says that it’ll invest in product development and “aggressive growth” in North America, aiming to double its 170-person headcount within the next 18 months. SpotDraft currently has “hundreds of customers” and tens of thousands of daily active users, Bijapur added. SpotDraft is one of a growing number of CLM vendors trying to stand out in the increasingly crowded field.