YC-backed Clerky Helps Startups Save Time And Money On Legal Incorporation, Stock Issuance Forms And More
Summary
We rarely mention the initial set of challenges every entrepreneur must face when they actually turn an idea into a startup — incorporation, stock issuance documents and more. Clerky’s online platform basically takes care of all of the legal work necessary to create a Delaware C Corp and set up founders with proper vesting, invention assignment, and governance frameworks. For example, an 83(b) election, a form that documents stock being issued, could cost as much as half of the proceeds of a future liquidity event due to increased taxes and legal fees. Kirsty Nathoo, Y Combinator’s CFO (read our profile of her here) says of Clerky, “I spend lots of time working with companies to fix problems with their formation, like incomplete documentation, non-standard terms, inconsistency, etc., which usually occur when founders try to handle it themselves. For founders that have lawyers, Clerky allows them to save their legal fees for higher value services like advice and review of funding documents instead of the mundane paperwork with the state of Delaware.
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