{"id":337420,"date":"2017-04-03T06:29:24","date_gmt":"2017-04-02T22:29:24","guid":{"rendered":"http:\/\/techcrunch.com\/?p=1471835"},"modified":"2017-04-03T06:29:24","modified_gmt":"2017-04-02T22:29:24","slug":"new-clerky-tools-help-startups-hire-and-raise-funds-without-running-into-legal-problems","status":"publish","type":"post","link":"https:\/\/people.utm.my\/asmawisham\/new-clerky-tools-help-startups-hire-and-raise-funds-without-running-into-legal-problems\/","title":{"rendered":"New Clerky tools help startups hire and raise funds without running into legal problems"},"content":{"rendered":"

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Clerky<\/a> may not be a household name like TurboTax today, but the company\u2019s business formation software has been called a \u201csecret weapon\u201d by startup founders in Silicon Valley for years. Many Y Combinator cofounders use it to get their companies started on paper. And now, Clerky is launching two new tools called Hiring<\/a> and Fundraising<\/a> to help startups move beyond incorporation.<\/p>\n

Co-founded by attorneys Darby Wong and Chris Field in 2011, Clerky focuses on the needs of startups, not just any small business, but companies that optimize for growth and intend to raise some angel or venture funding. These companies also typically issue equity compensation to employees, consultants or advisors.<\/p>\n

CEO Wong said, \u201cOur software makes it easy for founders of startups to get their legal paperwork done without messing it up, and without having to pay lawyers or paralegals to do what amounts to time consuming clerical work. We\u2019re not trying to replace lawyers though. We\u2019re trying to make it so that startups can save their money for what makes lawyers valuable\u2013 legal advice.\u201d<\/p>\n

The company\u2019s Formation, Fundraising and Hiring software includes features that facilitate attorney-client collaboration, Wong explains. For example, founders can have their lawyer double-check everything they type into the Clerky system, and be automatically apprised whenever they close a new investor. Or founders may use the platform to communicate with their attorneys to figure out what should be a new employee\u2019s vesting provision.<\/p>\n

While an attorney will charge startups thousands of dollars, typically, to handle their seed financings, Clerky\u2019s Fundraising tool costs $99 for six months of unlimited issuances of SAFEs or convertible notes. Companies that formed their business off the Clerky Formation platform need to also pay a $99 setup fee, as the startup has to evaluate their business to ensure they\u2019re in the clear to begin issuing SAFEs and convertible notes.<\/p>\n

When it comes to incorporating a business efficiently online, Clerky faces competition from major platforms like Stripe: Atlas<\/a>, LegalZoom<\/a> or BizFilings.com<\/a>, which are generally aimed at business formation and not per se targeting \u201chypergrowth\u201d startups with a Silicon Valley mindset. But it faces less competition on the fundraising and hiring front where negotiations today are facilitated by consultancies, law firms and in some cases helped along with open source documents available from various VC blogs, and law firms.<\/p>\n

Featured Image: Clerky Inc.<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

\"\" Clerky may not be a household name like TurboTax today, but the company’s business formation software has been called a “secret weapon” by startup founders in Silicon Valley for years. Many Y Combinator cofounders use it to get their companies started on paper. And now, Clerky is launching two new tools called Hiring and Fundraising to help startups move beyond… Read More<\/a><\/p>\n

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