Formality raises €8 million for the development of its AI-powered contract management platform.

Formality, a Paris-based startup specializing in AI-driven contract management, has announced a funding round of €8 million. This round was led by venture capital funds Partech and Serena, with an additional contribution of €2.4 million from BPI France. The funding aims to bolster the technological development of the platform and prepare for its international expansion, particularly in the U.S. market in 2025.

The costly impact of poor contract management

Formality was created to solve a key problem that many companies face: the complex management of client and supplier contracts. According to studies, poor contract management can result in a revenue loss of up to 9%, while about 60% of supplier contracts are automatically renewed without prior reevaluation. Formality’s solution aims to automate and centralize these processes, while simplifying administrative tasks for businesses.

AI-driven product to streamline contract management

Formality’s platform relies on a dual AI approach, integrating both traditional AI (artificial intelligence) and a dimension they refer to as “administrative intelligence.” The primary goal of the tool is to reduce the number of clicks and simplify contract management. The platform centralizes important documents, automates deadline management processes, and integrates with common tools like Slack.

Eliott Reilhac, CEO of Formality, emphasizes that AI is at the core of the product’s functionality, designed not only to automate tasks but also to deliver significant efficiency gains to businesses. This translates into a reduction in time spent on contract management, while enhancing process security and compliance.

Funding objectives

The €8 million raised will allow Formality to pursue several strategic objectives:

• Strengthening the sales team: to support sales growth and increase the company’s presence in the European market.
• Technological development: continuous improvement of the platform’s AI capabilities to meet the needs of businesses in sectors such as healthcare, SaaS, real estate, finance, and energy.
• Preparing for entry into the U.S. market: Formality plans to launch operations in the U.S. in 2025.

Addressing companies’ administrative challenges

Partech and Serena investors decided to invest in the startup because of the relevance of Formality’s solution. According to Philippe Collombel, General Partner at Partech, “Formality addresses a real issue for mid-sized companies, where contract management is both time-consuming and costly if not optimized.”