Skip to content

Clara receives investment from Plug and Play

Plug and Play, Silicon Valley’s largest global innovation platform, has announced a new partnership and investment in Clara, the legal operating system that empowers tech founders to digitally form, manage, and scale their startups.

 

Clara enables startups to concentrate on developing their businesses rather than becoming mired in legal paperwork. The company’s category-creating legal operating system digitizes and automates legal tasks for founders, including digital company formations, cap table and data room management, and automated legal document generation (covering SAFEs, ESOPs, and more), all supported by the platform’s predictive educational function.

 

Launched in 2006, Plug and Play is a leading innovation platform, connecting startups, corporations, venture capital firms, universities, and government agencies. Headquartered in Silicon Valley, with 50+ locations across five continents, Plug and Play leverages accelerator programs and corporate innovation programs to assist corporate and government entities in every stage of their innovation journey, from education to execution. With the largest tech startup scale-up network and an independent in-house venture capital arm driving innovation across multiple industries, Plug and Play has invested in hundreds of successful companies, including Dropbox, Guardant Health, Honey, Lending Club, N26, PayPal, and Rappi.

 

Commenting on the announcement, Patrick Rogers, Co-Founder and CEO of Clara said: “We’re thrilled to welcome Plug and Play as an investor and a partner. Plug and Play is the world’s largest global innovation platform, supporting more than 15,000 startups per year, across its 60+ accelerator programs. It’s also one of the most active investors in the world, investing in early-stage companies globally. This investment demonstrates Plug and Play’s belief that the Clara platform can be of tremendous support to the thousands of startups it supports each year.”

 

With over 4,000 global startups having created profiles on Clara to date, startup founders within the Plug and Play ecosystem will now gain preferential access to Clara’s range of products and tailored educational support that Clara and Plug and Play will co-design.

 

“Clara is helping thousands of founders navigate the complex world of startup law in a way that has not been done before”, said Carolin Wais, Partner at Plug and Play. “We are excited about our investment in Clara – a company that we believe is building a category-creating product that is proving to be of immense value to startups – and the investors who support them.”

 

Rogers added, “Plug and Play’s global reach and deep understanding of the issues startups face in navigating hurdles such as company formation and cap table management make them an incredible partner for us – particularly in the context of Clara’s increasing global reach”.

 

Commenting on the announcement, Henrik Bærentsen, Director of Plug and Play Saudi Arabia, said, ” We are truly excited and proud to be a part of Clara’s remarkable journey. Clara’s exceptional team and their outstanding service have truly impressed us. We have had the privilege of collaborating with Clara in various of our innovation programs, providing invaluable support to startups within the Kingdom. Now, we are eager to expand this collaboration on a regional and global scale, demonstrating our unwavering commitment to Clara as our newest portfolio company.

 

Henrik added, “This investment exemplifies our continued dedication to investing in the best startups across the kingdom and the region. As one of the world’s most active and successful early-stage tech investors, we are fully committed to fostering the Kingdom’s entrepreneurial ecosystem. We believe in empowering aspiring entrepreneurs and top talents, enabling them to drive the digital transformation that aligns with the ambitious goals outlined in Vision 2030. Together with Clara, we will continue to make a significant impact, support the growth and success of startups in the region.”

Sign up to find out more

Discover more from Clara

Raising money for a start-up can take many different forms. One way is to use convertible instruments such as convertible notes, SAFEs and KISSs. When using a convertible, the start-up receives the investment but does not issue shares at that stage. The agreement can 'convert' into shares in the future.

The ADGM and the DIFC are financial free zones in the UAE with independent jurisdictions exempted from the UAE’s civil and commercial laws. For founders looking for a place to register a new business, both are great jurisdictions to choose from.

The key elements of both Founders Agreements and Shareholders Agreements may vary depending on the specific circumstances and needs of the company. There might be overlaps between the two documents, but the difference can be found in the main elements of each.

One way to protect your startup from unfair competition is to include non-compete clauses in your employment contracts. You could also have a non-compete in the shareholders agreement that you sign with your investors.

You want a structure and business environment attractive to investors and venture capital firms. Many investors and venture capitalists say a Delaware C-corp is a good option.

We are committed to partnering with leading companies that move our startup customers forward, so they can move the world forward. We are thrilled to work with the Mintz team to support our growing roster of U.S.-based customers.

Your journey on Clara just got a whole lot easier now thanks to our brand new dashboard. Our all-new dashboard is designed to make it easier to get to the parts of the Clara platform that matter to you, plus gives you also visibility and progress across a variety of tasks.

A term sheet is a relatively short document setting out the key terms of the investment agreed upon between the company and the investor in user-friendly language. It is also referred to as a Memorandum of Understanding (MOU). It includes the business and finance terms and could include legal terms regarding confidentiality and dispute resolution.

Founders are often risk-takers with lots of energy and great business ideas. And that is fantastic, as long as you remember to set up the correct legal foundation for your venture. Not having the proper legal basis for your startup might be too big a risk. Having the correct legal documents in place is essential for the future success of your startup.

Whether you are looking to attract more investors or make key appointments for your start-up, you need a strong, up-to-date cap table. An accurate cap table gives potential investors the information they need to decide whether they will invest in your venture. It also helps stakeholders to keep track of their interests and shows potential employees what you can offer as stock options.

Guide to investor rights

When we refer to investors' rights, we refer to the legal and financial protection granted to investors when receiving shares in a start-up. It can also refer to certain privileges. In the early stages, a start-up can raise funds through convertibles. The founder will receive the money but does not need to issue shares at that stage.

The initial funding rounds of a start-up are often referred to as seed funding. At this stage, investors invest in the founder, the idea, and the company's potential. That money is usually used for product development and market research. Many start-ups don't make it to the next round of funding.

Automate your startup's legal work and get back to building.
Sign up to find out about the latest features
Dubai
Gate District Building 04, Level 6 Dubai International Financial Centre PO Box 506819 Dubai, UAE
Abu Dhabi
Level 15, WeWork Hub71Al Khatem TowerAbu Dhabi Global Market SquareAl Maryah Island, Abu Dhabi, UAE
London
LABS Camden – AtriumThe Stables Market, Chalk Farm RdLondon, NW1 8AHEngland, United Kingdom
Abu Dhabi
Level 15, WeWork Hub71Al Khatem TowerAbu Dhabi Global Market SquareAl Maryah Island, Abu Dhabi, UAE