- Evisort, an AI-powered contract management platform, raised $35 million in its February Series B.
- Its CEO and co-founder Jerry Ting walked Insider through its pitch deck.
- Ting also talked about Evisort’s plans for growth, including an IPO it’s eyeing in four to five years.
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Contract tech is the frontrunner in the legal tech space, as companies across industries seek to streamline their contract creation, negotiation, and management processes.
Evisort, a contract lifecycle management (CLM) platform, raised $35 million in its Series B announced late February, bringing total funding to $55.5 million. The private equity firm General Atlantic led its latest funding round, with participation from existing investors Amity Ventures, Microsoft’s venture firm M12, and Vertex Ventures.
Founded in 2016, Evisort uses artificial intelligence to help businesses categorize, search, and act on documents.
Its CEO Jerry Ting founded Evisort while he was still attending Harvard Law School. He spent one summer working at Fried Frank, but soon realized that he didn’t want to be a lawyer because he didn’t want to spend excruciating hours manually reading fifty-page contracts. He did, however, recognize how important they are to corporations, and co-founded Evisort as a tool to locate and track valuable information like a contract’s expiration date and obligations like payment dates.
The coronavirus pandemic has turbocharged the growth of CLMs, as remote work has necessitated the digitization of work and businesses across industries have sought to ensure they’re complying with contractual obligations. Ironclad’s January Series D valued the contracts platform at $1 billion, while e-signature company DocuSign has been making strategic acquisitions and investments to boost its portfolio.
Evisort’s plans for growth — and an IPO down the road
Evisort’s recent $35 million Series B is another milestone for the CLM space. The company said it’s quadrupled its revenue and signed multiple Fortune 500 customers, like Microsoft, Fujitsu, and NetApp, over the past year alone.
According to Ting, Evisort retains, on a per dollar basis, over 150% of net-dollar retention. In other words, customers are nearly doubling their spend with Evisort as they buy more of its “very sticky” products, expanding their use of the platform from the sales department to the legal department, and so on.
The company is “on track” for an IPO in the next four to five years, Ting told Insider. He said Evisort chose the private equity firm General Atlantic as its partner because it wanted an investor that has deep enough pockets to finance the company until they go public.
General Atlantic’s investment is also a “huge vote of confidence” for the CLM space, Ting said.
A significant portion of Evisort’s fresh $35 million in funding will be used to develop and “democratize” its AI technology, making it so easy to train that a fresh college graduate could use it. It also plans to scale its business and go to market by more than doubling its sales team. The company has declined to disclose specific numbers.
Evisort acquired a legacy CLM company last year, and Ting said that they have enough cash to potentially integrate smaller companies in the contracts space. He declined to disclose specifics of the deal, the terms of which are not public.
Evisort is aiming to at least double its revenue this year, which is a target that Ting thinks will continue for the next four to five years. “We’re still at the first inning of a very long baseball game,” he said.
Ting walked Insider through the 11-page pitch deck that Evisort used to impress investors.