Aranca endorses Clara’s cap table scenario modelling feature

Clara’s new round modeling feature will enable Clara users to visualize captable pre and post new funding rounds at different valuation ranges

May 06 · 3-minute read ·

Clara and Aranca

Clara, the trusted operating system empowering companies, investors, and lawyers in forming, managing, and building businesses, has announced the third-party corroboration of the round modeling feature by Aranca’s Valuation group, the industry leader in the valuation of start-ups across global markets. Clara’s new round modeling feature will enable Clara users to visualize captable pre and post new funding rounds at different valuation ranges.

Aranca is a leading research, advisory and valuation services firm that caters to diverse global clients – from high performing start-ups to marketing leading companies across industry sectors as well as family business groups across GCC.

For those unfamiliar, a ‘cap table’ stands for “capitalization table,” which serves as a ledger detailing a company’s ownership structure. Every transaction, be it a share issuance, share transfer, convertible investment agreement, or option grant, is recorded in this ledger and confirmed by stakeholders to ensure accuracy.

Since its inception, Clara has been dedicated to building a suite of tools that provide the digital infrastructure allowing companies to manage their legal and admin function more easily and cost-effectively.

Having successfully executed 8000+ valuations for start-ups, Aranca has developed an impeccable reputation and supports over ten equity management platforms across five continents as their valuation partner. Having valued diverse companies with simple to most complex cap tables, Aranca’s endorsement of Clara’s scenario modeling feature and reliability of post-funding captable scenarios, is a significant milestone and will provide substantial confidence to Clara customers and the law firms and investors to use this feature effectively on its platform.

Clara’s scenario modeling feature enables businesses to accurately project Employee Stock Ownership Plan (ESOP) pools, conversion of Simple Agreements for Future Equity (SAFEs), and other convertibles, including advanced convertibles from renowned accelerators like Techstars, 500 Global, Antler and Plug and Play. Furthermore, it facilitates the visualization of the dilutive impact of future equity funding rounds.

“From a broader perspective, Clara is constructing the digital framework essential for businesses across the world, offering businesses a comprehensive suite of tools for company formation, management, and growth. With this validation, we continue to build momentum in our goal of establishing Clara as one of the premier equity management solutions in the world,” commented Arthur Guest, Co-founder & Chief Innovation Officer of Clara.

Bharat Ramnani, Head of Valuation & Financial Advisory at Aranca believes, “The source of ‘truth’ for cap tables is held in the investment agreements and team member option grants. Unless the precise characteristics of the legal terms in those agreements are reflected accurately in the cap table, the output of the cap table model will be wrong. And this can lead to major problems for companies and their investors. Our valuation team performed a rigorous testing of the mechanics of Clara’s cap table and its scenario modeling tool over months. We found the scenario modeling results to be accurate and believe that companies and investors would feel confident to use the feature reliably to draw insights for future funding rounds”.

To learn more about Clara’s cap table, click here

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