Trakti LTD
Trakti is a unified platform for smart, self-executing and compliant contracts running on both private and public blockchain, streamlining the contracting process of medium-large enterprises, financial, insurance and regulated market operators.
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50 to Know / 50 to Watch / Future 5
In Their Own Words: Trakti LTD
Trakti offers all the tools needed to securely streamline the acquisition and negotiation flows, and manage all corporate contracts in a unique infrastructure.
The objective of Trakti is to assist companies from the beginning right up to the signing and monitoring of the contract in a fully compliant way, combining multi aspects of Fintech, Regtech and Lawtech.
The infrastructure is able to support both traditional contracts and smart contracts with blockchain implementations.
Trakti operates on the English and Italian markets. It works with medium and large companies, supporting them in optimizing the management and facilitating the automation of their contracts. “Our goal is to explain why smart contracts will be a key element in the management of relationships and process automation,” the CEO Luigi Telesca explains.
Rewards:
– Innovate Finance 360 pitch competition in the Regtech category as an innovative startup offering an end-to-end solution in this industry.
– The R&D lab R&D lab won the EU Commission tender on modeling the European economy as an ecosystem of contracts.
Our View
What it Does
With the rise of the contract lifecycle management (CLM) market, contract management has slowly become more digital. The same cannot be said, however, of contracts, and, in some ways, traditional CLM vendors.
Trakti, in contrast, is a step toward CLM that is digital native — that is, agreements modeled and managed in a fully electronic format. Via a combination of contract management expertise and targeted use of blockchain technology, Trakti offers smart contracts functionality in an end-to-end CLM system it has applied across enterprise use cases, at real customers, at supply chain scale.
Those familiar with standard contract lifecycle management solutions may be skeptical of this description. Most CLM vendors excel at digitizing contracts and obligations or streamlining negotiation, but rarely do they venture into true automation powered by smart contracts. Trakti does, however, live up to the standard of actually automating CLM processes. And we think the vendor is developing a strong position from which to scale its marketability as an enterprise-grade CLM.
Why We Chose It
Trakti is a 2020 Future 5 vendor because of its innovative technology and approach, along with strong customer references and potential to scale.
Trakti takes an approach to contract management that feels more futuristic than other CLM vendors. While the current focus in the CLM space is on AI, the actual application of advanced technology is to comparatively mundane tasks like labeling clauses and “grading” third-party contracts for risk levels. This is of course highly beneficial to customers, but it avoids the larger problem of the contracts still being prose and paper based.
If agreements were modeled natively in a digital format, much of this labeling and analysis could be avoided, and the post-signature management of these agreements could be digitally managed or, in some cases, automated. Which is what Trakti does.
And based on the customer references we’ve received, Trakti does this well. In particular, the two customers rated Trakti strongest for requirements on innovation, meets the expectations and “best fit” for cross-functional needs.
In sum, this match of innovation and successful execution makes a case for Trakti to further impress – if it can continue to win customers over to its disruptive approach.
Any threats or challenges ahead?
While many companies would likely benefit from the approach to contracting that Trakti enables, there likely will be much resistance to blowing up the authoring process this way. Most organizations look at contracting as a legal exercise in which the goal is to transfer risk to the counterparty, which Trakti does support is a way, but not as an emphasis.
Further, DocuSign’s partnership with Clause.io, Trakti’s only true direct competitor, brings smart contracts into the CLM marketplace through another vendor with much broader reach, funding and ability to market itself. If Trakti can build up a larger customer base in Europe, it could create a home field advantage for itself. But if DocuSign + Clause catches on in North America — or, if other CLM vendors also decide to go down the smart contracts route — Trakti could quickly find itself outgunned and fighting to scale.