Ironclad is going after an extremely big market - the opportunity to be the single system of record for the contractual information of every company in the world. In order to do that, they make software for legal teams that helps them do their work more efficiently and, as a result, stores all the key contractual terms in a searchable database.
Founder Jason Boehmig believes Ironclad is going after one of the last big opportunities in business software. After all, nearly every company of any size has a legal department—just as it has a sales team, which typically uses Salesforce; a human resources unit that has Workday; and a marketing group that might use Marketo.
Boehmig has the background to note this need. He was a corporate attorney at Fenwick & West, a large Silicon Valley law firm, for two years. His co-founder and Ironclad chief technology officer, Cai GoGwilt, was previously a software engineer at stealthy cybersecurity startup Palantir.
Boehmig and GoGwilt first nurtured Ironclad at Y-Combinator, a Silicon Valley seed fund accelerator. And for the past two years, they have rolled it out quietly at several companies including GoFundMe, Glassdoor, and HotelTonight.
“There is a massive inefficiency of labor,” Boehmig told Fortune. “I would do a lot of work to get to the point of delivering a legal opinion and much of that work wasn’t even legal, but more about structuring information correctly, organizing tax tables. These are things that a lawyer needs to know but it’s busy work,” he says.
Much of that work is better left to a computer, he says.
Most lawyers would prefer to focus on the legal, not organizational stuff. Ironclad estimates that bad contract management practices can suck up to 10% of a given company’s gross revenue.
Boehmig says Ironclad solves two major problems faced by all in-house legal departments in their contract work. First, it shepherds the contract itself from creation to completion as quickly as possible. Second it stores and extracts key information from those contracts as needed.
Ironclad will also work with whatever document storage and management software a customer already uses, including Box, Dropbox, and DocuSign.
Automated contract management is potentially a huge market - Boehmig says estimates of total addressable market (TAM) could be about $75 billion.
Soma invested in the initial seed round. Since then, Ironclad has accelerated in growth and most recently raised a $50mm series C round led by Accel, Sequoia and Emergence.