Formality Raises €8M to Revolutionize Contract Management with AI

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Paris, October 3, 2024 – Paris-based startup Formality has successfully raised €8 million in a funding round to advance its AI-powered contract management platform designed to simplify and streamline contract workflows for businesses. The funding round was co-led by leading venture capital firms Partech and Serena, with an additional €2.4 million investment from BPI France, the French Public Investment Bank. This significant financial boost highlights investor confidence in Formality’s cutting-edge technology and its potential to transform contract management.

Formality’s platform is designed to tackle the complexities of managing client and supplier contracts, a task critical to a company’s financial health. Research shows that ineffective contract management can lead to revenue losses of up to 9%, and around 60% of supplier contracts are renewed without review, underscoring the need for a solution like Formality’s.

The company will use the new funding to expand its sales team, accelerate technological development, and prepare for its anticipated entry into the U.S. market in 2025. Formality already serves notable clients, including Electra, Resilience, and Lifen, with plans to further expand its reach across industries such as healthcare, real estate, finance, SaaS, and energy.

Formality’s co-founders are seasoned entrepreneurs, previously having built TVTY, a startup specializing in measuring TV advertisement impact, which was acquired by Nielsen (USA) in 2021. This success contributed to the strong investor backing Formality has received.

Eliott Reilhac, CEO of Formality, emphasized the platform’s innovative use of AI, saying, “Formality integrates AI at its core to eliminate unnecessary clicks and save time, making the process more efficient compared to many manual solutions on the market. For example, a salesperson could simply ask, via Slack, ‘I need a contract with Client Y for €20,000 per year, renewed automatically,’ and receive a ready-to-sign contract instantly, based on pre-approved templates.”

The platform utilizes advanced AI technologies, including Large Language Models (LLMs) such as OpenAI and Gemini, tailored for legal workflows to boost efficiency and accuracy. By centralizing key documents and providing real-time tracking for deadlines, Formality offers a seamless experience for businesses with 50 to 1000 employees.

The investment from Partech and Serena further solidifies Formality’s position in the tech landscape. Sébastien Le Roy, Partner at Serena, expressed his confidence in the team, stating, “Given our prior experience with the founding team during the TVTY journey, it was a natural decision to invest in Formality. They are perfectly positioned to address the administrative challenges that businesses face today.”

Philippe Collombel, General Partner at Partech, echoed this sentiment, adding, “For many medium-sized companies, contract management is not only repetitive but also costly when mismanaged. Formality’s solution meets a crucial market need, enabling companies to focus on their core operations while streamlining administrative burdens.”

As Formality embarks on this next phase of growth, the startup aims to redefine contract management, bringing simplicity, security, and efficiency to a process often bogged down by complexity. With its SaaS product and innovative features, Formality is poised to become a leader in the contract management space.


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