Clara launches FREE cap table calculator for startups
Clara, the legal operating system, has launched a free cap table calculator for startups. Cap (short for capitalization) tables are important in determining the value of a company, in raising capital, and in making strategic decisions. A cap table is also a useful tool for founders to assess their funding round goals, allowing a clear overview of the company’s value and ongoing financial situation.
The Clara calculator provides a clear view of current ownership once the business enters its estimated funding amount, pre-money valuation, and desired post-raise percentage set aside for unissued options. Data can be added, deleted and amended in real time, with the chance to add multiple investors, and start-up specific investment agreements such as SAFEs (Simple Agreement for Future Equity).
For Aidan Christofferson, Co-Founder Flashy, an existing Clara customer that is fundraising, said the Cap table generation was one of the main reasons “why we started to engage with them in the first place”. He continued, "It goes without saying that having an in-depth understanding of your cap table and its evolution through rounds is critical as a start-up Founder. They provide you with the tools you need to automate routine legal work and document generation, alongside giving you situational awareness regarding fundraising decisions and their implications. We’ve used the Clara platform extensively since founding Flashy in 2021, and the platform’s features have been critical in allowing us to scale intelligently.”
Patrick Rogers, CEO and Co-Founder of Clara, explains: “Clara is all about bringing straightforward automation to the legal requirements start-ups need. Cap tables might sound complicated and time-consuming, but they don’t have to be. Our free calculator is a powerful tool designed to help startup founders easily track the ownership structure of their companies.”
A cap table is a document outlining a company’s ownership structure, specifically the percentage of ownership held by each shareholder and the type of securities they hold (such as ordinary shares, preferred shares, options and warrants). A cap table includes details such as initial investment, funding rounds and equity grants.
Clara is a member of the Open Cap Table Coalition, and later this quarter will be launching the new version of its cap table which is being built on the open cap table format meaning the cap table will be fully transferable with other providers that use this innovative cap table format.
Rogers added that more than 2,500 startups across the MENA region are using Clara to digitally form, manage and scale their startups, with this figure is now growing at a pace of about 400 per month.