Ontra's $70M Boost: Revolutionizing Wall Street's Back Office with AI-Powered Legal Automation

Troy Pospisil, a former investment professional at H.I.G. Capital, identified a significant pain point in the private equity sector: the excessive time spent on routine legal contracts. This led him to found InCloudCounsel in 2014, now rebranded as Ontra, a startup dedicated to automating these tedious tasks.

Ontra's flagship product, Contract Automation, has evolved into a comprehensive suite aimed at streamlining back-office operations for private capital markets. The suite now includes tools for contract negotiation, fundraising simplification, and entity management modernization.

In a recent development, Ontra secured $70 million in financing from Silicon Valley Bank, bringing its total funding to $325 million. Notable investors include Blackstone, Battery Ventures, and Mike Paulus, co-founder of Assurance IQ. This strategic move allows Ontra to avoid equity dilution while partnering with a financial heavyweight.

With 850 clients, including giants like Blackstone, Warburg Pincus, and AllianceBernstein, Ontra is making waves in the legal tech space. The startup is part of a growing trend of AI-powered legal automation firms, alongside Ironclad and Juro, catering to the private markets.

Ontra plans to allocate the new funds towards R&D and the launch of innovative products. Upcoming offerings aim to enhance due diligence questionnaires, customer verification processes, and contract negotiation speeds. The company's ambitious roadmap includes introducing two new products annually, positioning itself as the go-to infrastructure provider for private markets.

While the IPO market shows signs of revival, Ontra remains cautious. CEO Troy Pospisil emphasizes that going public is not an end goal but a potential strategic step if it aligns with the company's growth trajectory.