In a significant advancement for privacy-oriented enterprise technology, legal artificial intelligence startup SpotDraft has obtained a strategic investment of $8 million from Qualcomm Ventures. This funding, announced in October 2025, has resulted in a remarkable doubling of SpotDraft”s valuation to around $380 million. This infusion of capital highlights a crucial shift towards on-device artificial intelligence as companies address the increasing demands for stringent data governance.
The funding will expedite the rollout of SpotDraft”s VerifAI technology, which enables intricate contract reviews directly on user devices, thereby negating the necessity to transfer sensitive legal documents to the cloud. This innovation offers a robust solution for businesses that prioritize data security.
SpotDraft”s Partnership with Qualcomm Ventures
This Series B extension marks a pivotal juncture for the Bengaluru- and New York-based firm, elevating its valuation from $190 million following its previous funding round in February 2024. The involvement of Qualcomm Ventures transcends mere financial support, encompassing joint development and go-to-market strategies centered on AI-enhanced PCs utilizing Snapdragon X Elite processors. This collaboration emphasizes the growing integration of semiconductor advancements with specialized enterprise software.
Since its inception in 2017, SpotDraft has witnessed explosive growth, expanding its clientele to over 700 organizations, including notable names like Apollo.io, Panasonic, and Whatfix. The platform currently manages over one million contracts annually, with contract volumes escalating by 173% year-over-year. The company anticipates a 100% year-over-year revenue growth in 2026, following a substantial increase of 169% in 2024.
The Demand for On-Device AI in Enterprises
The widespread adoption of generative AI within enterprises is encountering notable challenges, especially in regulated industries. Research consistently identifies data security and privacy as primary obstacles. Legal workflows often involve privileged information and confidential terms, making cloud-based AI solutions risky in terms of compliance. SpotDraft effectively tackles this issue with its VerifAI tool, which operates directly within Microsoft Word, applying legal playbooks and risk assessments locally.
“The future of enterprise AI necessitates solutions that are in close proximity to the document,” stated Shashank Bijapur, Co-founder and CEO of SpotDraft. “These tools must be privacy-critical, latency-sensitive, and legally aware. Such functionalities are transitioning on-device.” This architecture guarantees that essential contract intelligence remains on the user”s machine, requiring internet access only for initial login and collaborative features.
Advancements in On-Device AI Technology
Historically, on-device AI models have struggled to match the output quality and speed of their cloud-based counterparts. However, recent technological progress has significantly reduced this gap. Madhav Bhagat, Co-founder and CTO of SpotDraft, revealed that “we now observe as little as a 5% difference between leading cloud models and our fine-tuned on-device models.” He added that processing speeds on the latest chips are “one-third of what we achieve in the cloud.” This performance equivalence is vital for professional adoption, particularly in legal teams, where precision and efficiency are paramount.
The demonstration at Qualcomm”s Snapdragon Summit 2025 showcased VerifAI”s capabilities, successfully running end-to-end on Snapdragon X Elite laptops and executing complex edits offline. This capability is particularly essential for sectors like defense and pharmaceuticals, which face stringent internal security requirements and data residency regulations that often hinder the use of cloud AI tools.
SpotDraft”s Expansion Plans
With the new funding, SpotDraft aims to enhance its operations in three primary areas: product and AI development, enterprise sales, and team growth. The company seeks to deepen its on-device model capabilities while expanding workflow integrations, scaling its presence across the Americas, EMEA, and India, and supporting a workforce that now exceeds 300 employees. SpotDraft”s operational hub in Bengaluru, along with its U.S. operations led by COO Akshay Verma, positions the company for a comprehensive expansion strategy. Although the legal sector serves as the initial proving ground, the underlying technology has broad applications across various industries handling sensitive documents, including healthcare, finance, and government contracting.
In conclusion, SpotDraft”s $8 million strategic investment from Qualcomm Ventures not only signifies a critical validation for on-device AI within enterprises but also highlights the pressing demand for privacy-first solutions in an increasingly regulated environment. By doubling the startup”s valuation to $380 million, this partnership merges advanced semiconductor technology with specialized legal software, directly addressing the core security concerns that impede broader generative AI adoption. As data governance regulations tighten globally, SpotDraft”s architecture provides a compelling framework, delivering robust AI capabilities while ensuring that sensitive information remains securely under the user”s control.
