Clara, a legal operating system that provides an integrated collection of self-service tools to assist founders digitally organise, manage, and develop their firms, announced on Tuesday that it had raised more than $3.5M in seed funding from The LegalTech Fund. The platform is nearing the end of its beta period.
The London based startup’s exit from beta means better features and functionality for the 1,200+ startups that have already signed up, including quick company formation in major jurisdictions where VCs and accelerators frequently invest. Improved cap table functionality and faster legal document processing are included in the platform. In the coming year, Clara will grow into new jurisdictions and continue to provide new and improved services to its users.
Clara was founded in 2018 by a group of entrepreneurs who have worked in the legal and technology industries at the highest levels. Ahmed Arif, Arthur Guest, Hannah McKinlay, Lee McMahon, and Patrick Rogers are among them.
This startup is a legal operating system that digitises and automates legal expertise for startup companies. Almost all of the duties now performed by lawyers, such as establishing companies, preparing agreements, building cap tables, and arranging data rooms, are addressed by the legaltech startup, which educates and empowers entrepreneurs. Clara also serves as a collaboration and information sharing tool for founders, investors, and lawyers, allowing the global startup ecosystem’s essential stakeholders to collaborate effectively.
“We’re happy to welcome The LegalTech Fund as an investor,” adds Patrick Rogers. Their team’s legal knowledge, ties with major worldwide players in the legal ecosystem, and operational savvy make them an excellent partner for us – especially as we prepare to expand into new jurisdictions later this year.”
The business model
A first-of-its-kind legal operating system, the company intends to become a critical component of the software stack for startups all over the world, having previously partnered with accelerators such as Techstars and 500 to assist their cohorts in forming companies and organising their legals.
Founders may access many of the tools they need to get their startup off the ground as part of Clara’s free Start subscription. This includes legal education, access to legal documents, the ability to develop cap tables, as well as shareable data rooms and a health check before engaging with investors to fill any essential holes.
The LegalTech Fund’s Co-Founder and Managing Director, Zach Posner, stated, “Despite the fact that Clara is still in beta, what they’ve produced thus far has assisted thousands of entrepreneurs in navigating the difficult world of startup law in a way that has never been done before. Clara is a firm that we feel is building a category-defining product, therefore we’re excited about our investment.”
The LegalTech Fund is a global fund that promotes a variety of legal disruptors. Clara’s objective to assist founders transform the world by making the legal experience fundamentally efficient through a fully integrated platform drew the fund’s attention, according to the company.
According to the fund, the $1T legal services market will continue to rise as the globe grows more complex and the regulatory environment adapts. Innovative technology is only beginning to reach the market, and it will improve the efficiency of legal work, expand access to legal services, and enable next-generation governance tools.
Techstars, 500 Global, Wamda Capital, and Shorooq Partners are among the other investors in Clara.