Clocr

Early Stage

Revolutionizing the $300B digital legacy industry with our all-in-one platform

Analytics

Raised to Date: Raised: $540,774

Aggregate Commitments $

Platform

Republic

Start Date

02/22/2021

Close Date

10/31/2021

Min. Goal

$25,000

Max. Goal

$1,070,000

Min. Investment

$100

Security Type

SAFE

Funding Type

RegCF

Series

Pre-Seed

Valuation Cap

$8,000,000

Discount Rate

15%

Rolling Commitments $

Status

Active

Reporting Date

10/21/2021

Days Remaining

10

% of Min. Goal

2,163%

% of Max. Goal

51%

Likelihood of Max
unlikely
Avg. Daily Raise

$2,244

Momentum
cold
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Location

Austin, Texas

Industry

Consumer Products, Goods & Services

Tech Sector

Legaltech

Distribution Model

B2B/B2C

Margin

Medium

Capital Intensity

Low

Business Type

Growth

Clocr, with a valuation cap of $8 million, is raising funds on Republic. It is a digital legacy planning platform that allows individuals to create wills for their online accounts, manage their beneficiaries, and stay connected with their loved ones. The platform is legally-compliant, secure, and easy to use. Sree Chintala and Apoorva Chintala founded Clocr in November 2018. The current crowdfunding campaign has a minimum goal of $25,000 and a maximum goal of $250,000, and the proceeds will be used to add new service lines, enhance the product offerings, get the security certification, and grow the team. Clocr has three pending patents and has been featured in Forbes, Entrepreneur, and Techconnect.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$1,049

$97

COGS

$0

$0

Tax

$745

$0

 

 

Net Income

$2,804

$37

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$4,336

$787

Accounts Receivable

$0

$0

Total Assets

$4,336

$787

Short-Term Debt

$1,245

$500

Long-Term Debt

$0

$0

Total Liabilities

$1,245

$500

Financials as of: 02/22/2021
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Ratings

Analyst Report

Synopsis

Estate planning is an important process for many Americans. With the advent of the internet and the rise of digital assets, planning for what comes after death has grown even more complicated. In most wills and other legacy planning documents, boilerplate language is used to ensure that digital assets are passed on to the proper beneficiary or beneficiaries in the right way. However, even this language may not prove thorough enough to allow companies to transfer digital assets over to the new beneficiaries. This issue is due in part to the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). At present, no fewer than 46 states have adopted these policies. 

One company dedicated to addressing the shortcoming that legacy documents often possess is Clocr.  The female- and minority-owned company provides a wide range of services. The first is estate planning for digital assets, allowing the user to create their digital estate and assign beneficiaries as needed. The second is what management calls a “time capsule,” a service that allows users to pass on any personal information like messages, stories, and more to select beneficiaries. A third service outlined by the company is its digital vault. This feature handles the organization, management, and sharing of a user’s most important documents with specific individuals. Its password vault then handles the “shredding” of passwords and their storage on cloud services. In the future, Clocr is also interested in adding legal forms on its platform and enabling users to detail their last wishes for beneficiaries after they pass. 

Clocr has developed a couple of different methods for revenue generation. Its primary method will likely be through selling its services directly to consumers. The company is planning to provide a 90-day free trial to its platform followed by various paid plan options. The firm also intends to partner up with different death care providers, financial planners, estate planners, and senior living facilities. The company has already partnered with the Female Advisor Network and with the Global Women for Wellbeing. 

Clocr’s current Republic raise has been rated a Neutral Deal by the KingsCrowd investment team.

Price

Clocr has an $8 million valuation cap. Participating investors will receive a SAFE that will convert into equity in the future, subject to a 15% discount. While Clocr has seen limited revenue, this valuation amount is reasonable in comparison to other startups currently seeking funding. The discount rate also makes it more attractive for investors. As a result, the price score for Clocr is above average. 

Market

Clocr believes that its market opportunity is at least $300 billion in size. However, that is using some rather spurious assumptions. One source indicates that the global digital asset management market was worth $5.11 billion in 2020. With an annualized growth rate of 23% expected, it should climb to $11.7 billion by 2024. A second source sees the industry growing from $3.4 billion in 2020 to $6 billion in 2025, which implies an annualized growth rate of 12%. The overall market size for estate planning in the US is valued at $180 billion — though it’s important to note that Clocr can only target a specific niche within this large market.

There probably is a better way to estimate the market size the company is working with. Consider that a topic like digital estate planning would be more focused on developed nations and that the company’s efforts have largely centered around what is occurring in the United States. In 2017, 42% of American adults had a will. This number has declined to 33%, even though millennials and Generation X are more likely than the middle-aged to have a will. Applying 33% to the 209.13 million American adults in the US today and applying the company’s $99 per year subscription package gives an annualized revenue of $6.83 billion.

Team

At present, the core team that runs Clocr consists of a father-and-daughter pair. The first of these is Apoorva Chintala, the company’s CEO as well as one of its two co-founders. While she has limited work experience, she has served on the UT Senate of College Councils, where she organized a Texas-wide research conference. She also focused on recruitment strategies and the management of the organization’s new member program. CEO Chintala previously engaged in research and statistics as an intern at the New York Federal Reserve. She has a bachelor’s degree in economics, and she graduated with honors. 

The second member of the team is Sree Chintala. He is the company’s other co-founder as well as its chief technology advisor. Previously, he was the co-founder and information technology specialist at Shard Security, a business focused on the same sort of shredding and cloud storage service Clocr is based on. Before that, he was a chapter consultant at TiE Austin, a global entrepreneurship organization. His prior role focused on enterprise cloud sales for Oracle. He has also had a couple of entrepreneurial endeavors of his own. One of these was building an automated sanitizing system for door knobs, and the other was building an app platform for parent-teacher associations. He also served as an enterprise architect and IT manager at Halliburton. Collectively, these experiences show he is an entrepreneurial individual and demonstrate a degree of technical skill that the company is otherwise sorely missing. 

Clocr also has a sizable group of advisors and employees. These individuals cover operations areas such as financial planning, business development, marketing, estate law, and tech development. While the younger Chintala does not bring ample experience, this factor is balanced out by the elder Chintala’s expensive industry experience and the overall team’s skills. Thus, Clocr’s team score is strong.

Differentiators

With the exception of Clocr’s digital shredding, much of the company’s services can be obtained from other sources. The shredding, however, offers a noteworthy degree of security. In addition, no competitors clearly offer an easy-to-use service that provides the full range of offerings that Clocr has or plans to develop in the future. Some law firms would provide most of these services, but they can be expensive. Working with a law firm also prevents individuals from completing their digital asset estate planning independently. Given all these distinctions, Clocr scores quite highly in the differentiators metric.

Performance

According to the company’s financials, revenue in 2019 was only $97. In 2020, it was $1,049. The firm has generated a net profit overtime, though, with the profit of $37 in 2019 growing to $2,804 in 2020. The bulk of 2020’s profit came from a $2,500 grant the company was awarded that year. Outside of financial performance, the company has done fairly well. The business received $15,000 in non-dilutive funding from eight different pitch competitions, and its aforementioned partnerships are encouraging. Given this early traction, the performance score for Clocr is above average.

Bearish Outlook

On the bearish side, the Clocr team could be larger and more robust. The platform does not seem to have very much that would stop a competitor from coming into the picture with a similar service. Obviously, the one exception to this is its patent-pending digital shredding. Financial performance has been limited, and the market it operates in looks limited in scope. 

Bullish Outlook

Clocr shows promising differentiation from its present competitors. The price investors are being asked to accept in order to participate in the round is attractive. In addition, the market is continuing to grow. The fact that the company has any revenue at all is nice to see, and one of the two core members of its team has some decent technology experience. 

Executive Summary

Clocr has built a platform that enables users to plan for how their digital assets and accounts will be handled after they die . On one hand, the company’s team and financial performance could both be stronger. There is also little to stop a new competitor from appearing in the future. However, Clocr promisingly stands out from its current competition in a growing market with its simple, all-in-one service and patent-pending shredding concept. Its price is also reasonable, and the company has notably already made some profit. All these factors have led to Clocr being rated a Neutral Deal at this time.

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com.

Analysis written by Daniel Jones.

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