Contract management isn’t precisely an fascinating topic, but it’s a actual discomfort point for quite a few businesses. It also lends itself to automation, thanks to current advances in machine studying and all-natural language processing. It’s no surprise then, that we see renewed interest in this space and that investors are placing much more revenue into it. Earlier this week, Icertis raised a $115 million Series E round, for instance, at a valuation of much more than $1 billion. Icertis has been in this company for ten years, even though. On the other finish of the spectrum, contract management startup Lexion right now announced that it has raised a $4.2 million seed round led by Madrona Venture Group and law firm Wilson Sonsini Goodrich & Rosati, which was also 1 of the initial customers of the item.
Lexion was incubated at the Allen Institute for Artificial Intelligence (AI2), 1 of the late Microsoft co-founders’ 4 scientific analysis institutes. The corporation’s co-founder and CEO, Gaurav Oberoi, is a bit of a serial entrepreneur, whose initial startup, BillMonk, was initial featured on TechCrunch back in 2006. His second go-about was Precision Polling, which SurveyMonkey then acquired shortly just after it launched. Oberoi founded the corporation collectively with former Microsoft analysis application improvement engineering lead Emad Elwany, and engineering veteran James Baird.
“Gaurav, Emad, and James are just the kind of entrepreneurs we love to back: smart, customer obsessed and attacking a big market with cutting edge technology,” stated Madrona Venture Group managing director Tim Porter. “AI2 is turning out some of the best applied machine learning solutions, and contract management is a perfect example – it’s a huge issue for companies at every size and the demand for visibility into contracts is only increasing as companies face growing regulatory and compliance pressures.”
Contract management is becoming a bit of a crowded space, even though, some thing Oberoi acknowledge. But he argues that Lexion is tackling a distinctive market place from quite a few of its competitors.
“We think there’;s growing demand and a big opportunity in the mid-market,” he stated. “I feel equivalent to how back in the 2000s, Siebel or other businesses presented extremely high-priced CRM application and now you have Salesforce — and now Salesforce is the high-priced version — and you have this extended tail of items in the mid-market place. I feel the exact same is taking place to contracts. […] We’re functioning with businesses that are as modest as post-seed or post-Series A to a publicly-traded corporation.”
Provided that it handles a lot of hugely confidential details, it’s no surprise that Lexion says that it requires safety extremely seriously. “I think, something that all young startups that are selling into business or enterprise in 2019 need to address upfront,” Oberoi stated. “We realized, even before we raised funding and got very serious about growing this business, that security has to be part of our DNA and culture from the get-go.” He also noted that every single new function and item iteration at Lexion goes via a safety overview.
Like most startups at this stage, Lexion plans to invest the new funding into constructing out its item — and in particular its AI engine — and go-to-market place and sales tactic.