SirionLabs gets $ 85 million to inject contract management with automation - TechCrunch

SirionLabs gets $ 85 million to inject contract management with automation – TechCrunch

Contract lifecycle management (CLM), the method of managing a contract from initiation to award, compliance and renewal, can be costly for businesses. World Commerce and Contracting estimates the average cost of a simple contract at $ 6,900, rising to over $ 49,000 for more complex deals. The opportunity is often worth the investment, but without tight contract governance, companies risk losing up to 40% of the value of a contract, a KPMG survey found.

The tempting prospect of automating the procurement process has drawn numerous entrepreneurs to the space, including UnitedLex co-founder Ajay Agrawal. Agrawal’s latest venture is SirionLabs, which includes AI technologies such as natural language processing to import and organize contracts, negotiations and contract review.

Highlighting investor interest in the segment, SirionLabs announced that it has closed a $ 85 million Series D funding round led by Partners Group with the participation of existing investors Sequoia Capital and Tiger Global. It brings the company’s total raised to $ 157 million, which Agrawal says goes into downsizing and product research and development.

“[With] UnitedLex Corporation, my team and I were always trying to create software applications to automate aspects of the manual work they were doing for clients. Some of these applications have been very successful, so it inspired me to start thinking about how to achieve that level of automation with contracts on a larger scale, as a product rather than a service, “Agrawal told TechCrunch in an interview via e -mail. “In 2012, Claude Marais, the former global head of outsourcing at General Motors, and I started brainstorming and imagining SirionLabs. We founded SirionLabs, a corporate SaaS platform, together with our co-founders [and UnitedLex colleagues] Kanti Prabha and Aditya Gupta ”.

SirionLabs leverages algorithms trained on legal documents and “industry data” to provide visibility into contract execution, invoices and reports during the post-contract signature phase. (The company declined to provide any further information on the training data, and the algorithms were not benchmarked for accuracy by a third party, it’s worth noting.)

Customers can use model libraries with “AI driven” clause selection, which helps generate standard business contracts. Or they can upload third-party drafts to the platform to have them search for missing clauses, insertions, deletions, and changes during multiple rounds of contract negotiation.

SirionLabs also provides “draft risk scores” and suggestions for improving clause selection. In addition to this, the platform brings out insights intended to provide an advantage when trading based on past contract data.

“SirionLabs’ competitive advantage ensures that performance after contract award matches the terms set out in the contract,” Agrawal said. “Technical executives care about CLM software because data in contracts is critical to their key stakeholders within the organization. For the legal department, software is a vital tool for identifying and managing risk and compliance. [And] for procurement, it represents a huge cost saving in negotiation and supplier management “.

The legal department is notoriously slow to adopt new technologies, with a 2019 Bloomberg law survey finding that only one in four people work in law firms and legal departments that use tools based on artificial intelligence or intelligence. automatic learning. Barriers include lack of resources, budget constraints, and technology illiteracy. But that doesn’t stop startups: The contract management lifecycle market is expected to grow from $ 1.5 billion in 2019 to $ 2.9 billion by 2024, according to Markets and Markets.

Overall, legaltech as a category continues to resonate with investors, who poured $ 9.1 billion into the market through financing, mergers and acquisitions in 2021 alone. The pandemic has undoubtedly played a role in this, focusing on business continuity and minimizing risks.

Among the big hits in the industry are Icertis, which recently secured $ 150 million with a $ 3.2 billion valuation to build its procurement tools. LinkSquares raised $ 100 million for its AI-powered contract analytics platform in April, while ContractPodAI, a close competitor, raised tens of millions to digitize contract reviews.

Agrawal also sees Ironclad, Conga and DocuSign CLM as SirionLabs’ main rivals. But while he didn’t disclose the revenue or reveal whether SirionLabs is currently profitable, Agrawal said the company is gaining ground, with over 250 clients including Qantas, Credit Suisse and Vodafone.

“The addressable market for CLM is expanding rapidly as more organizations embark on digital transformation initiatives,” said Cyrus Driver, CEO of Partners Group who plans to join the board of SirionLabs, in a statement. “We have been attracted by SirionLabs’ leadership in this category, superior product offering and blue-chip customer base and look forward to working with management to increase capacity for growth. “We have a strong belief in SirionLabs’ growth potential, so we wanted to be involved as a key investor to continue the company’s momentum in this key sector.”

SirionLabs has around 600 employees and plans to hire around 200 in 2022, Agrawal said.

Leave a Comment

Your email address will not be published.