Digital contract management startup Clause has raised $5.5 million in a Series A round led by crypto merchant bank Galaxy Digital.
The funding round also saw investment from electronic signature pioneer DocuSign and Galaxy Digital's EOS Venture Capital Fund, which is backed by EOS blockchain maker Block.one and other investors.
Founded in 2016, Clause offers blockchain-based solutions to facilitate the creation, storage and maintenance of digital contracts for businesses. However, it also offers clients these same services independent of blockchain technology – by using existing platforms such as Stripe or PayPal.
"Clause is a system that doesn't rely on a particular blockchain," the company's founder and CEO, Peter Hunn, told CoinDesk, adding:
At the same time, Hunn says there are several unique benefits to facilitating digital contract execution on a blockchain. Namely, using a blockchain creates immutable audit trails for contract performance.
"One of the biggest problems with contract management today is that you really have no visibility into the events that occur under a contract after the point of signature," Hunn said. "You really only have a record of the agreement at the point of signature. You don't have a record of these post-signature events and that creates a lot of transaction costs."
Today's announcement of Clause's Series A is not the first major fundraising round for the company. Back in 2017, the startup raised just over $2 million from lead investors BN Capital at Lerer Hippeau and London-based Seedcamp, which both participated again in the Series A.
Galaxy Digital's Greg Wasserman and Mike Dinsdale will both be joining Clause's board of directors.
"They both bring a wealth of enterprise experience," Hunn told CoinDesk. "[Their] experience is very useful for Clause as it begins to grow into a much larger organization."
Looking ahead, Hunn said the partnership with DocuSign will lead to new features.
CEO Peter Hunn image courtesy of Clause
Correction (June 27, 2019 19:30 UTC): Peter Hunn clarified that Clause was founded in 2016, not 2015.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.