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ContractPodAI, an AI-powered contract management solutions provider, today announced it has raised $ 115 million in Series C investment led by SoftBank Vision Fund 2 at “five times” its valuation from July 2019. The cycle, in which Eagle Proprietary participated Investments will be made to grow products and expand ContractPodAI’s presence internationally, leveraging SoftBank’s Asia-Pacific network.
Almost all business functions rely on legal involvement or expertise. Despite its importance, the legal was one of the last functions to embrace digitization. In 2017, the cost of a base contract was $ 6,900, according to the International Association for Contract and Business Management – with about 5 billable hours spent on legal review and up to 6 hours. management and procurement.
Founded in 2012 and based in London, ContractPodAI is the brainchild of Sarvarth Misra, a lawyer turned entrepreneur who sought to digitize legal tools and resources by leveraging standard AI technologies. ContractPodAI combines public cloud services from IBM, Microsoft, and others with a codeless interface designed to help teams process complaints, RFP reviews, and IP portfolio management using predefined and configurable applications.
“The company was founded by Robert Glennie and I, both trained business lawyers. We recognized the huge market opportunity of the slower adoption of technology by the legal sector, ”Misra said in a press release. “It was a question of ‘when’, not ‘if’. But, there was no existing technology that was really suitable for the purpose, so they built ContractPodAI using legal design thinking that has now evolved into a fully configurable codeless platform for legal teams in the world. their daily work.
Inject contracts with AI
As the pandemic has disrupted businesses around the world, investors have bet the farm on legal solutions, which they say will be increasingly digitized. According to Crunchbase, legal technology companies have already recorded more than $ 1 billion in venture capital investments so far in 2021, surpassing the $ 510 million invested in 2020 and the all-time high of $ 989 million. in 2019.
The contract management software market alone is expected to grow from $ 1.5 billion in 2019 to $ 2.9 billion by 2024, as legal research, case development and strategy refinement are becoming more and more essential. Despite evidence showing that only a small number of law firms use AI-powered tools – in a recent survey, 7% of firms said they implemented AI-powered tools, with 45% citing precision and cost issues – interest in the technology will continue to grow.
“The pandemic has partly accelerated the need for legal digital transformation. Last year, we published the Advanced Cognitive Research which, [which] helps customers quickly identify pandemic force majeure clauses on sales and purchase contracts, ”Misra said. “We [also] released Contract Risk & Compliance, which begins to not only take manual work away from a legal team, but actually helps it in more strategic work. We launched Cognitive Language Translation, allowing global legal teams to work much more cohesively in their own native languages. And we’ve introduced a rapid deployment model, which helps customers get up and running with their core ContractPodAI features like remote workflow and signing.
ContractPodAI, two hundred employees, offers guided forms and templates for building legal applications with integrations with products from IBM, Microsoft, DocuSign and Salesforce. Customers get a toolkit of AI functionality such as document review, cognitive research, and analytics for each use case, as well as ‘tailor-made’ AI data models tailored to their needs. the purpose of the modules.
“When customers upload a contract, the platform’s natural language processing scans the documents and extracts important aspects such as automatic renewal dates, termination dates, etc.,” added Misra. “In addition, our Contract Risks and Compliance feature offers suggestions on how to mitigate risk and track a client’s progress towards a less risky, more compliant agreement. “
Despite competition from startups such as Lexion, LinkSquares, Malbek, Evisort, and DocuSign, ContractPodAI has been successful in attracting current and past clients including Bosch Siemens, Braskem, EDF Energy, Total Petroleum, Benjamin Moore, and Freeview. In addition to its London office, the startup has outposts in San Francisco, New York, Glasgow, Chicago, Sydney, Mumbai and Toronto.
To date, ContractPodAI has raised over $ 170 million in venture capital.
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