Clearway has secured an $850,000 investment as it ramps up efforts to expand its innovative legal SaaS product, a tool rapidly gaining traction in the legal tech market.
The company is actively seeking additional funds through convertible debt loans, a strategy aimed at boosting growth without diluting current shareholders’ stakes.
Quick Look: Clearway’s Ongoing Financial Strategy
- Recent Funding: $850,000 was raised to bolster the legal SaaS product’s market reach.
- Financial Instruments: Ongoing funding through convertible debt to fuel further expansion.
- Product Focus: Enhanced features for automating legal processes like client intake and compliance with “know your client” regulations.
As Clearway sets its sights on increasing its monthly recurring revenue (MRR) to $100,000, the use of convertible debt offers potential investors an attractive entry point into the legal technology space.
This form of financing allows investors to convert their debt into equity during subsequent financing rounds or under predefined conditions, typically at a favourable price.
Why Convertible Debt?
- This allows Clearway to manage growth without excessive shareholder dilution.
- Provides Clearway with the financial agility needed to navigate the competitive tech landscape.
- Investors get to earn a 10% interest rate and have an option to invest in Clearway at a pre-determined value cap.
Clearway’s legal SaaS product, which they are calling “Clearway Time,” simplifies several routine legal processes which can be cumbersome and time-intensive. By automating tasks such as client information verification and regulatory compliance, the software significantly cuts down on administrative overhead while boosting accuracy and service quality.
The product is currently only for lawyers, but will soon be for Realtors, bankers, and venture capitalists. Clearway plans to roll out the product to other professional service sectors as well.
These enhancements make it an essential asset for lawyers and attorneys who are aiming to streamline operations and focus more on client service.
Product Highlights:
- Automates time-consuming tasks like client intake, improving operational efficiency.
- Helps lawyers adhere to strict regulatory requirements effortlessly.
- Enhances overall service quality by reducing the potential for errors and delays.
- Lawyers can easily track referral fees.
- Lawyers can refer referrals using Clearway Time.
Looking forward, Clearway plans to use the newly acquired funds to push into new markets, particularly in the United States, and to refine its SaaS offerings. The team is also preparing to increase its marketing efforts and expand its sales team to support this growth. Currently there is no sales team.
Future Plans:
- Market Expansion: Geographical expansion, especially in the U.S., to tap into a larger market.
- Product Development: Continuous enhancement of the SaaS product to stay ahead of market needs.
- Sales and Marketing: Boosting the sales force and marketing campaigns to increase visibility and product uptake.
The confidence displayed by investors through their funding of Clearway’s convertible debt initiatives underscores the market’s recognition of the potential held by the company’s legal SaaS product.
As Clearway moves towards its goal of $100,000 MRR, these strategic financial maneuvers position the company to not only meet but exceed its ambitious growth targets. This ongoing financial commitment is expected to propel Clearway into the next phase of its expansion, making it a company to watch in the burgeoning legal tech industry.
