Clause Blockchain Contract Project Gets $5.5 Million in Funding Led by DocuSign, Galaxy Digital
There are many interesting blockchain projects that are getting much more attention as the technology becomes more widely used as well as more from them which aids adoption the long-term. One of such projects is Clause, which is a digital contract management startup that has raised $5.5 million in a series A round of funding which was led by Galaxy Digital, a crypto Merchant Bank. Besides Galaxy Digital there was also investment from DocuSign an electronic signature pioneer and EOS Venture Capital Fund that is affiliated with Galaxy Digital as well as others.
What Is Clause?
Clause was first founded in 2015 and helps facilitate the creation, storage, and maintenance of the contracts for businesses and also offers the same services independent of blockchain technology by making use of existing platforms such as PayPal. It is very well known that smart contracts are causing quite a stir in the legal world because they allow users to carry out transactions between various parties through blockchain that offers element of security for any forms been exchanged as one of the guarantees is that the conditions stated in the contract will be fulfilled else the transaction will not be allowed to go through.
“Clause is a system that doesn’t rely on a particular blockchain,” the company’s founder and CEO, Peter Hunn,
told CoinDesk, adding,
“It’s blockchain-agnostic and also blockchain-independent. What we mean by that is you can run Clausee without the blockchain infrastructure at all. You could just have a contract that you sign using an e-signature service that then initiates a payment through Stripe or PayPal that you connect to that agreement.”
Hunn, however, stated that there are many benefits to making use of digital contract creation using blockchain which is that they create immutable audit trails at helps measure contracts performance. Given the important nature of record-keeping when it comes to business transactions, it is rather important to make use of blockchain as the records being created cannot be erased and can not be changed and so future reference can always be made to them.
“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,”
“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.”
Big changes are coming to Clause besides just the announcement of their series A round of funding as in 2017 the raised $2 million from investors BN capital and Lerer Hippeau as well as Seedcamp. Now Greg Wasserman and Mike Dinsdale from Galaxy Digital will be joining Clausee’s board of directors
“They both bring a wealth of enterprise experience,”
Hunn told CoinDesk.
“[Their] experience is very useful for Clausee as it begins to grow into a much larger organization.”
“One of the big innovations we’re working on with DocuSign is the ability to extend DocuSign functionality from not just e-signature but also to perform other events you may want to do within DocuSign [natively].”