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SAN FRANCISCO, Jan. 30, 2019 (GLOBE NEWSWIRE) -- Ironclad, a contract management leader that streamlines legal workflows for companies like Dropbox, Procore, and Reddit, today announced that it has raised $23 million in a Series B financing led by Sequoia Capital. Existing investors including Accel and Y Combinator also participated in the round, bringing Ironclad’s total funding to $34 million. Sequoia partner Jess Lee has joined Ironclad’s Board of Directors.
“I saw something in Ironclad that I typically only see in B2C companies—virality and community,” says Lee. “What starts as a tool for General Counsel or legal operations professionals often gains traction across teams and even across entire companies. Ironclad's customers experience so much delight with the platform that they tell their friends in the legal community about it."
Though contracts are foundational to every business deal, fragmented efforts and outdated technology make it difficult for companies to do basic things, like tracking contractual obligations, preventing automatic renewals, and ensuring regulatory compliance. While other teams rely on software to manage their work, legal teams still spend up to 70% of their time managing contracts manually in e-mail, Word, and even filing cabinets, costing companies millions of dollars in revenue and operating expenses.
Ironclad is turning contracts from business blockers to intelligence assets, capturing a $60+ billion market. “Until now, we’ve been focused on solving the process problems that all organizations face when it comes to contracts. In this next phase, we’re focused on helping businesses unlock the wealth of information inside their contracts, so they can leverage them as strategic business assets,” says Jason Boehmig, co-founder and CEO of Ironclad.
Year over year, Ironclad increased their revenue by 317% and grew their employee headcount by 220%. The new investment will accelerate product development in key AI areas like smart contract intake and automated legal insights. It will also fuel expansion to meet growing demand from legal teams around the world.
Boehmig conceived of the idea for Ironclad as a corporate attorney at Fenwick & West. He and Ironclad co-founder and CTO Cai GoGwilt, a former Palantir Technologies engineer, built the prototype while at Y Combinator.
Contracts are business decisions trapped in administrative tasks. Ironclad is software that does the administrative work better left for a robot, freeing legal teams to do more substantive work and drive business strategy. By automating contracting processes and extracting intelligence from contracts, Ironclad lets legal teams focus on legal work, rather than paperwork. Legal teams at companies like Dropbox, HotelTonight, Glassdoor, and Procore use Ironclad to get their contracts done more efficiently and accurately and to maintain a single source of contract data truth. Headquartered in San Francisco, Ironclad is backed by Sequoia, Accel, Greylock, SV Angel, and Formation 8. For more information, visit https://www.ironcladapp.com.
From idea to IPO and beyond, the Sequoia team helps a small number of daring founders build legendary companies. We spur them to push the boundaries of what’s possible. In partnering with Sequoia, companies benefit from our unmatched network and the lessons we’ve learned over 45 years working with Steve Jobs, Larry Ellison, John Morgridge, Jerry Yang, Elon Musk, Larry Page, Jan Koum, Brian Chesky, Drew Houston, Adi Tatarko and Jack Dorsey, among many others. In aggregate, Sequoia-backed companies account for more than 20% of NASDAQ’s total value. We’re proud that their success also fuels great causes. The vast majority of money we invest is on behalf of non-profits and schools like the Ford Foundation, Mayo Clinic and MIT, which means that the returns generated from the incredible achievements of founders can make a massive difference. For more information, visit https://www.sequoiacap.com/.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/c0730e50-0107-419d-927a-4e6e19af1507