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. 

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.

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.

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.

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.

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. 

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. 

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.

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Analysis written by Daniel Jones.