SignNow nabs $2M, launches iPad app for John Hancocks

Khosla Ventures backs a new way to securely sign documents from most mobile devices

In a highly digital environment, some of the challenges arise when you have to make you signature appear on all those documents in your inbox. One company is looking to make that troublesome step quick, secure and digital. The e-signing service, SignNow, announced Tuesday that it secured a $2 million Series A funding round to make paperwork less of a chore. Khosla Ventures led the round after SignNow raised $500,000 from unnamed angel investors.

The funding will go toward continued product development, said Chris Hawkins, the company's CEO and founder, in an interview with me. 

Currently, the service is available on iPhones and Android and, in conjunction with this funding announcement, the company is releasing an iPad app to digitally sign documents for free.

While other companies such as Adobe and Entrust offer digital signature functions to enterprises for a fee, SignNow is looking to corner the smaller business and independent market with its free services.

(SignNow was a top 10 finalist at our Splash LA event 2011. We're looking for applicants to compete in our Splash LA event June 2012, register here.)

"We have a wide range of users including law firms, to sales agencies, contractors, and even parents signing permission slips," Hawkins said.  "We designed it for very broad usage by individuals in many roles."

The company is offering all of the digital signing for free at the moment but the company said that they have a lot of things in the works to generate revenue for the company.

How it works

When a user receives a document in their email or file-sharing service that needs a signature then they sign into SignNow and use their finger (on an iPad, iPhone or Android) to sign the document.

SignNow also allows you to upload a standard signature for even faster verification and the services have been verified in the US, EU, China, India and Canada to be a valid method for legal documents.

SignNow is also the company behind NotaryNow, a service that allows people to connect to a notary instantly, via webcam, to legally notarize documents. 

SignNow also allows you to save and track all the documents you have signed in the past for quick and easy refinance for personal or professional matters.

With devices such as the iPad replacing laptops, the desire to use them in legal and contract work seems like a logical next step and the company notes that more than 10% of the current Android users are using SignNow on tablets.

This is a refelection of just how big of a game-changer tablets will be in the business environement. 

In a December study, conducted by the National Purchase Diary of North America, a majority of businesses are budgeting for tabelt purchases this year.

The survey found that as the number of employees in the small business grew, so did the likelihood that they would be purchasing tablets for business. For businesses with fewer than 50 employees, the intent to purchase a tablet was 54%. That percentage increased until it reached a staggering 89% of companies between 501 and 999 employees planning to buy those shiny flat computer devices. Of all the businesses considering a tablet, 73% thinking of going the route of the iPad.

Among the SMBs surveyed, 73% stated intent  purchase tablets over the next 12 months, up from 68% in the NPD Group’s second quarter survey. An overwhelming 90%, of all firms anticipate spending the same amount or more on tablets next year. 

The average budget that a SMB will spend on tablets is projected to exceed $21,000 over the next 12 months, but depending on company size, the intent and amount spent changes drastically.

Additionally, Sean Ellis, who was in marketing roles for Dropbox, Eventbrite, Xobni, LogMeIn, and others, has joined SignNow's Board of Directors.