A CLEAR (Clear Letter of Equity and Remuneration) is a fair offer letter, amendment, or online tool that helps founders and employees make sense of their equity.
A CLEAR offer/amendment is fair to both employees and companies. You want to build a company, not a bunch of complicated legal documents.
Many founders spend a lot of time teaching new employees how their equity works. A CLEAR offer makes it super easy to explain your offer, and lets the candidates know they won't get surprised later. Like YC's SAFE and the Series Seed, the CLEAR helps people on the wrong side of a knowledge gap trust they get a fair deal.
Founders used to know much less than investors about funding contracts. In the late 2000s, some top investors taught founders how fundraising works. For example: Brad Feld, Fred Wilson, Paul Graham, and Naval/Nivi (with Venturehacks) all brought transparency to venture capital.
Employees still know much less than founders about employment contracts. Founders who do right by their employees often get no credit for it. CLEAR does for employees what YC's SAFE and the Series Seed did for Founders: Bring clarity and fairness so both sides can get back to what's important: building companies.
Nobody. Not even ourselves.
To preserve your privacy, AngelList doesn't store CLEAR offer details. AngelList doesn't even track who is sending or receiving CLEAR offers. Instead, as you fill out a CLEAR, the URL is automatically updated. You can send an offer by sharing the generated URL. Here is an example completed offer.
No. We can't do that legally and it's a bad idea. We can ballpark how much your equity might be worth if you do as well as some really successful companies like Twitch, Twitter, or New Relic. That level of success is rare. Most early-stage startup equity ends up being worth nothing.
If you use CLEAR: