Spotdraft Shows That Contract Lifecycle Management Remains Profitable, Raises $26M

Mar 02, 2023•almost 3 years ago

Amount Raised

$26 Million

Bengaluru

Investors

100x Entrepreneur FundRiverwalk FundArkam Ventures021 CapitalProsus VenturesPremji Invest

Description

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 Information

Company

SpotDraft

Location

Bengaluru, Karnataka, India

About

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.

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Funding Insights

Based on industry data

VC-backed spending patterns

VC-backed companies spend 89% more on sales and 100% more on marketing than bootstrapped peers

Tech investment trends