Ironclad, the company founded in 2014 has raised US$50 million in Series C Financing.
On 2 August 2017 the company raised US$8 million. At the time the company announced: “Armed with $8 million in new Series A funding, Ironclad today unveiled a groundbreaking SaaS platform that turns contracts into code, radically streamlining the way corporations create, store, and leverage contracts as intelligence assets.”
The company had raised US$3 million prior to its August 2017 funding.
In January 2019 it raised US$23 million in a round led by Sequoia.
At least US$84 million has been invested into Ironclad. Why?
Before we try to answer that question, it is important to know that Ironclad is not the only ‘contract management’ company that is attracting funding. Other companies include: Kira Systems, ContractPodAI, Elevate and Icertis. For these companies contract management technology is either their core business or at least an important component.
The names of some or all of these companies, including Ironclad, may be unfamiliar to many us now but in time to come they may become as well known in the legal industry as Thomson Reuters or LexisNexis.
Contract management to in-house legal teams and their corporations may become the foundation technology in the way that practice management systems became the foundation technology for law firms.
The money flowing into these companies is certainly a sign that there is a financial reward waiting for companies that can become the contract management platform for corporate enterprises.
The official announcement from Ironclad
Ironclad, the digital contracting platform loved by modern legal teams, announced today that it has closed a $50 million Series C funding round, led by Y Combinator Continuity with participation from Emergence Capital. Returning investors including Accel and Sequoia Capital also participated in the round. Ironclad will use this financing to expand into new geographies and double down on contracting solutions for its growing community of General Counsels, legal operations and their teams.
Since its last funding round, Ironclad has more than doubled its customer base to include some of the most dynamic companies in the United States, including FitBit, The Texas Rangers, Procore, Dropbox and Away. Its revenue has increased by 300 percent and employee count by 170 percent. Ironclad also has one of the most diverse executive teams in the technology space, with 75 percent being women and minorities.
On a mission to power the world’s contracts, Ironclad helps transform legal teams from cost centers to revenue enablers. According to Gartner, in-house legal teams are being asked to do 90% more work with only 3% more resources. Automating the fragmented and manual contract process is a $60+ billion dollar market opportunity.
“We were excited to be a part of this wave of collaboration software,” said Ali Rowghani, CEO of Y Combinator Continuity. “The contracting process poses a massive challenge for all companies, and Ironclad is the first solution to enable teams to meet that challenge. We’ve known the Ironclad team since the Summer 2015 YC batch and continued to be impressed by the company’s growth, innovation and executive focus.”
“There has been very little innovation at the crossroads of legal and technology relative to the scope of the opportunity because the problems are complex and require expertise across different domains,” said Jake Saper, Partner at Emergence Capital. “What’s remarkable about Ironclad is the deep level of expertise at the executive level across both the legal and tech sectors. Ironclad’s leaders are committed to building a company that will change the role in-house legal teams play within modern businesses, helping them become more strategic.”
Introducing Workflow Designer
Ironclad also announced the launch of Workflow Designer, the only contracting solution that lets customers bake complex business processes into their contracts, without needing to rely on outside or engineering help.
While traditional contract lifecycle management vendors require months—even years—to implement basic workflows, Workflow Designer gives customers the power to build and iterate on workflows immediately, often deploying in a matter of minutes. Customers have unprecedented autonomy over their business processes and implementation timelines, and enjoy the fastest time-to-value on the market.
“This round and our continued momentum highlights how big the opportunity is to streamline contracting for every type of company in the world,” said Jason Boehmig, co-founder and CEO of Ironclad. “Our newest investors bring a depth of later stage company experience and a vision for what Cloud companies will look like in the future. Our new funding will fuel continued product innovations, like our new Workflow Designer, which is accelerating contracting time by 85% for our customers.”