Icertis Inc., a contract management startup that counts Google LLC and Microsoft Corp. among its clients, has raised $150 million in debt financing.
Icertis announced today’s funding round. The stake, which was provided by Silicon Valley Bank, includes $75 million in convertible debt and a $75 million revolving credit facility.
Icertis, based in Bellevue, Washington, offers a software-as-a-service platform that companies use to manage contracts such as supplier contracts. The startup says it helps manage more than 10 million contracts covering more than $1 trillion worth of transactions.
Companies can use Icertis’ platform to create a collection of contract templates for common types of transactions. Legal teams can use the library of templates to draft new contracts faster than would otherwise be possible. According to Icertis, its platform includes a Microsoft Word plugin that makes it easy for users to find contract templates and prepackaged contract clauses.
The Icertis platform also helps with negotiations. The platform can analyze a company’s contracts with suppliers and identify opportunities to negotiate more favorable terms. Icertis’ algorithms can, for example, detect situations where two business units are buying the same product at two different price points.
Before a new contract clause is added to a contract, it often needs to be approved by company management. Icertis offers features that make it easy for administrators to review and approve new contract terms. A tool called DiscoverAI can automatically flag potential issues, such as conflicting clauses, that need to be addressed before a deal can be finalized.
Contracts that have already been completed can be scanned for useful business insights using another built-in tool called AI Studio. According to Icertis, AI Studio is capable of finding patterns in large legal datasets. The tool can, for example, analyze the average duration of a company’s contracts with a specific supplier or determine how often a specific clause is added to contracts.
When needed, legal teams can use Icertis’ platform to make bulk changes to contracts. According to the startup, this feature facilitates tasks such as complying with regulatory changes.
“Clients across all verticals are using our AI-powered contract intelligence platform to digitally remember the purpose of each business relationship and ensure that the purpose of those contracts is fully realized,” said Rajat Bahri, CFO of Icertis. “This new funding from Silicon Valley Bank is a strong vote of confidence in our growth trajectory, adding to our already strong capital position and allowing us to lean towards gaining market share.”
According to TechCrunch, Icertis generated annual recurring revenue of more than $100 million last year. That number has since increased to more than $200 million. Icertis earlier thorough that twice as many new customers had adopted its platform in 2021 than the previous year.