SpotDraft, which makes an artificial intelligence-powered platform for contract lifecycle management, announced Wednesday it has raised $54 million in a Series B funding led by Vertex Growth and Trident Partners.

The company provides a tool for corporate legal teams to manage all aspects of contracting using AI to do the laborious knowledge work. This includes managing all stages of a contract, from its initial creation and negotiation through execution, monitoring and compliance, and eventual renewal and termination.

SpotDraft’s software includes AI-assisted redlining tools, which is the process of editing a contract where two or more parties negotiate or work together to produce a single document that all sides can agree on. It also has an intelligent contract repository that tracks the history of changes, third-party papers, agreements and e-signatures.

“We believe 2025 will be an inflection point for team SpotDraft,” said Chief Executive Shashank Bijapur. “Apart from market expansion and talent growth, we’re strongly committed to deepening the use of AI in the product to help legal teams unlock efficiencies and drive innovation.”

Bijapur, an alumnus of Harvard Law School, and Madhav Bhagat, an alumnus of Carnegie Mellon, co-founded the company in 2017. Before launching the company, Bijapur practiced law in New York and Bhagat worked at Google LLC.

SpotDraft launched VerifAI in 2023, a generative AI Microsoft Word plug-in that allows legal teams to check contracts against user-specified guidelines and ask open-ended questions. It’s aimed at assisting with the contract review process to ensure compliance with specific standards. It can provide comments and explain its reasoning behind modifications, allowing other parties to follow along and review potential changes.

“SpotDraft’s CLM platform has made a huge impact on our legal team’s time, workflows and efficiencies,” said Jonathan Franz, head of legal at Crunchbase Inc. Franz cited the platform’s ease of use and its capability in assisting with automating high-volume contract work for helping close deals faster.

Artificial intelligence continues to attract attention in the legal industry as investments flow in. EvenUp Inc., a legal document AI startup for personal injury, raised $135 million in October. Harvey, a legal AI startup for lawyers, raised $100 million in July. And Eve, another legal AI platform, raised $47 million the same month. Ironclad Inc., a digital contract management startup, launched an AI legal assistant named Jurist for contract work in November.

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