Qualcomm Invests $8M in SpotDraft, Doubling Valuation to $400M for On-Device Contract AI

As demand grows for privacy-first enterprise AI that can run without sending sensitive data to the cloud,SpotDraft has raised $8 million from Qualcomm Ventures in a strategic Series B extension to scale its on-device contract review tech for regulated legal workflows.

The extension values SpotDraft at around $380 million, the startup told TechCrunch, nearly double its $190 million post-money valuation following its $56 million Series B in February of last year.

Across regulated sectors,enterprises have moved quickly to test generative AI,but privacy,security,and data governance concerns continue to slow adoption for sensitive workflows — especially in legal,where contracts can include privileged facts,intellectual property,pricing,and deal terms. Industry research has consistently flagged data security and privacy as key barriers to wider GenAI deployment in professional services, pushing vendors like SpotDraft to pursue architectures that keep core contract intelligence on the user’s device rather than routing it through the cloud.

At Qualcomm’s Snapdragon Summit 2025,SpotDraft demonstrated its VerifAI workflow running end-to-end on Snapdragon X Elite-powered laptops, executing contract review and edits offline while keeping the document on the local machine. SpotDraft said internet connectivity is still required for login, licensing, and collaboration features, but contract review, risk scoring, and redlining can run fully offline without sending documents to the cloud.

SpotDraft sees legal as an early proving ground for on-device enterprise AI, arguing that sensitive contracts frequently enough cannot be routed through external cloud models due to privacy, security, and compliance constraints.

“The future of how enterprise AI is going to be — right now, there’s got to be AI that is close to the document, wich is privacy critical, latency sensitive, [and] legally sensitive, and those are the things that will move on device,” said Shashank Bijapur (pictured above, left), co-founder and CEO of SpotDraft, in an interview.

SpotDraft says VerifAI’s on-device capability extends beyond simply gene