In this edition of Localogy’s Local Radar, we examine newly funded companies Canary, SpotDraft & Froda
1. Canary
Like a lot of brick-and-mortar business categories, hotels are divided between massive brands and smaller independent entities. And with that demarcation comes dividing lines in capabilities. For example, large international hotel chains have IT departments and customized software to run their operations, such as booking systems. These are generally modified versions of large enterprise software packages from the likes of Oracle or SAP. So where does that leave smaller independent hotels? They’re on their own to develop software to manage daily operations and bookings. Canary is looking to fill that gap with a software package for independent hotels. It includes everything that the big guys enjoy, such as CRM-like functions to super-serve guests by knowing their individual preferences. Altogether, it runs the gamut of the guest experience, from booking to departure. And the company just added fuel to its fire with an $80 million Series D round led by Brighton Park Capital. This will help it expand beyond its already respectable base of 20,000 hotels across 100+ countries.
2. SpotDraft
One of the first professions that’s cited in the list of disruption victims of AI is law. Lawyers themselves are likely safe – especially those who embrace AI to make themselves more effective. But lower-level legal functions like paralegal work are already being massively disrupted. And legal pros are increasingly embracing AI for such functions. According to Clio, 79 percent of law firms use some form of AI for casework in 2024, which is up from 19 percent in 2023. It’s likely even higher now, given the pace of AI adoption. SpotDraft is the latest company to blip on our radar screen to tackle this opportunity. The company focuses on contract automation and management software. It’s meant for legal pros to streamline the tedious and time-consuming process of contracting. This includes everything from devising copy using LLMs to project management functions to organize inputs and action items from various stakeholders. In that sense, it competes with the likes of LinkSquares, DocuSign-owned Lexion, Workday’s Evisort, and Filevine. But though it’s the latest to challenge these established players, it’s penetrating well so far, with about 400 customers, 169 percent year-over-year revenue growth. This was all validated recently with investor confidence, to the tune of a $54 million Series B round led by Vertex Growth Singapore and Trident Partners. This brings its total raised to date to about $80 million, and the new cash will be applied to some R&D as well as geographic and human-capital expansion.
3. Froda
SMBs need funding, too. Swedish fintech startup Froda is scratching that itch with an SMB-focused debt financing platform. Using the platform, SMBs can more effectively find sources of debt financing and facilitate the process of securing it, including ironing out deal terms and other key functions. The platform also helps investment sources in that it evaluates risk and investability around SMBs through cash flow analysis, bank account validation, and other automated risk scoring. The company recently secured a $22.7 million Series B round led by Swedish VC Incore Invest. The funding comes at the right time to accelerate Froda’s growth, as it saw 30% year-over-year customer growth in 2024. This investment notably counteracts the stalled funding in fintech over the past year, offering further confidence in Froda’s positioning and momentum. If it can raise funding despite the current environment, that could be a strong confidence signal. It will use the funds to expand its team and geographic footprint beyond its current primary markets in northern Europe.
Header image credit: Marten Bjork on Unsplash
