THE October 2, 2024the French start-up Formality announced a seed fundraising of 8 million euros. This funding round was led by venture capitalists Serena Capital And Partechwith significant support from Bpifrance who contributed up to 2.4 million euros.

An innovative solution to optimize contracts

Created in June 2023Formality has developed a single platform which centralizes all of a company’s essential documents. This includes customer and supplier contracts, real estate leases and insurance contracts. By uploading these files to the platform, businesses benefit from in-depth analysis via artificial intelligence tools.

According to Eliott ReilhacCEO of Formality and former co-founder of TVTY, “these tools will extract important information, such as dates or clauses.” This innovation aims to avoid situations where companies lose revenue. Indeed, a study by the International Association for Contract and Commercial Management (IACCM) reveals that the costs linked to poor contract management can represent up to 9% of income of a company.

The risks of tacit renewal

One of the major challenges that companies face is the tacit renewal of contracts. Approximately 60% of contracts would be renewed without companies realizing it, which could lead to losses of customers to the competition. Eliott Reilhac underlines: “companies sometimes miss contract renewals, which take place without a decision being made.” This reality highlights the importance of proactive contract management.

A smart assistant to increase productivity

Formality is not limited to contract management. The start-up also seeks to improve the efficiency of legal teams. “A legal team can receive up to ten requests per day from its colleagues for documents such as a Kbis or statutes,” explains Eliott Reilhac. To remedy this, the company developed an intelligent assistant that allows teams to ask their questions directly to Formality.

The technology relies on advanced language models, including those from OpenAI, Google and Mistral AI, to provide accurate and rapid responses to internal requests.

Pricing and customer targeting

Formality offers a platform in SaaS mode, with licenses starting at 12,000 euros per year For ten users. Formality’s main target includes businesses ranging from 50 and 1000 employees. Currently, the start-up has around ten renowned clients, including:

• Electra (electric charging specialist)
• Lifen And Resilience (e-health platforms)
• Snapdesk (office rental service)

Future outlook

With this fundraising, Formality, which employs 20 employeesplans to strengthen its sales team. At the same time, the start-up plans an expansion into the American market, with an ambitious objective of 1 million euros in annual recurring revenue (ARR) by second quarter 2025. This initiative demonstrates Formality’s commitment to more efficient and future-focused contract management.