More and more legal experts are embracing AI, research shows. According to a recent poll from Legal Tech Company’s Clio, 79% of companies used some form of AI in casework from 19% in 2023 last year. , one study suggests that almost half of lawyers believe AI can help reduce costs for the department.
Legal high-tech providers are appearing left and right to meet demand. Focusing on automating contracts and building management software, SpotDraft 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 early teams of 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 with vendors such as Linksquares, Docusign-owned Lexion, Workday’s Evisort, and 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 Growth Singapore, with participation from Trident Partners.
It would have probably not been harmful for the broader legal technical department to see the infusion of funds after a rough quarter of several years. In 2024, Legal Tech’s VC funding reached $2.6 billion per investment database pitch, up 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.”
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