Common Paper: Simplifying Contracting for Startups

As a startup, closing deals with customers is critical to your success. But the process of negotiating and signing contracts can be time-consuming, complex, and risky. Common Paper, a Philadelphia-based startup founded in 2020, aims to simplify the contracting process and help startups close deals faster and with less risk. In this article, we'll explore how Common Paper does this and what makes them unique.

What is Common Paper and how does it work?

Common Paper is a contracting platform that helps startups manage standard contracts for commercial transactions. Their platform includes NDAs, DPAs, and sales agreements, among others. These contracts are open-source and standardized, which means that data within the contracts is structured from inception. The structured data allows other business systems to programmatically access it, making it easier to manage and analyze the data.

The platform is built to provide a single workflow from drafting to signature, making it easy for startups to manage the entire process from start to finish. The process includes contract proposal, negotiation, and signature collection, which are all handled in one workflow. This eliminates the need for email and redlined Word docs.

One of the unique features of Common Paper is the ability to filter and export structured data automatically. The platform tracks every term in each agreement signed and allows startups to filter, search, and export to answer diligence questions, ensure compliance, and update default positions.

Who are the founders of Common Paper?

Common Paper was founded by Benjamin Garvey and Jake Stein. Benjamin Garvey serves as the CTO of Common Paper and has a background in software engineering. He has previously worked with companies like RJMetrics, Magento, Adobe, and Betterment. Jake Stein is the CEO and co-founder of Common Paper. He has a background in venture capital and has also co-founded companies like RJMetrics (acquired by Magento, then Adobe) and Stitch (acquired by Talend).

What are the benefits of using Common Paper?

Using Common Paper has several benefits for startups. Here are some of the key benefits:

Faster deal closing: Common Paper helps startups close deals with customers faster by providing standard contracts that can be sent in minutes.

Less risk: Common Paper reduces risk by providing standardized contracts that are open-source and structured from inception. This makes it easier for other business systems to access the data within the contracts and analyze it.

Integrated negotiation and signing: Common Paper provides a single workflow from proposal to signature, eliminating the need for email and redlined Word docs.

Automated reminders: Common Paper allows startups to set up automated reminders, offer deadlines, and reassign agreements mid-flight. This helps keep everything on track and moving forward.

Manage payments and renewals: Common Paper allows startups to integrate with Stripe and collect billing information right after signing. This makes it easier to manage payments and issue renewals and upsells based on previously agreed-to terms.

Filter and export structured data: Common Paper automatically tracks every term in each agreement signed and allows startups to filter, search, and export the data to answer diligence questions, ensure compliance, and update default positions.

What makes Common Paper unique?

Common Paper is unique in several ways. Here are some of the key differentiators:

Standardized contracts: Common Paper provides standardized contracts that are open-source and structured from inception. This makes it easier for other business systems to access the data within the contracts and analyze it.

Automated reminders: Common Paper allows startups to set up automated reminders, offer deadlines, and reassign agreements mid-flight. This helps keep everything on track and moving forward.

Integrated payment and renewals: Common Paper allows startups to integrate with Stripe and collect billing information right after signing. This makes it easier to manage payments and issue renewals and upsells based on previously agreed-to terms.

Filter and export structured data: One of the biggest advantages of Common Paper's platform is that it captures all of the data within the contracts in a structured format from the outset. This means that the information is easily searchable, sortable, and filterable. You can easily find specific clauses, terms, or even keywords in seconds, instead of having to read through the entire contract.

In addition, the platform allows you to export structured data in a variety of formats, making it easy to integrate into other business systems. This can save hours of manual data entry and reduce the risk of errors.

For example, if you need to perform due diligence on a potential acquisition target, you can quickly filter and export all of the relevant information from your contracts, such as IP ownership or non-compete clauses. This can help you identify any potential red flags and make more informed decisions.

Manage payments and renewals: Closing a deal is just the beginning - you still need to manage payments and renewals. Common Paper's platform makes this process seamless by integrating with payment providers like Stripe.

After a contract is signed, you can automatically collect billing information and set up recurring payments based on the agreed-upon terms. This can help you accelerate your collections and reduce the risk of missed payments.

You can also use the platform to issue renewals and upsells based on previously agreed-upon terms. This can help you retain customers and increase revenue without the need for additional negotiations or paperwork.

Stay on top of everything with automated reminders and notifications: One of the biggest challenges of managing contracts is keeping track of all the moving parts. Common Paper's platform makes this easy by providing automated reminders and notifications.

You can set up reminders for key milestones in the contract lifecycle, such as when an offer is due or when a renewal is coming up. You can also assign tasks to specific team members and track their progress in real-time.

The platform sends email and Slack notifications to keep everyone in the loop and ensure that nothing falls through the cracks. This can help you close deals faster, reduce the risk of errors, and improve overall productivity.

Conclusion

Common Paper is a contracting platform built specifically for startups. It helps you close deals faster, with less risk, and with less administrative overhead.

By providing standard, open-source contracts and structured data from the outset, the platform can save hours of manual work and reduce the risk of errors. It also provides integrated negotiation and signing, automated reminders and notifications, and payment and renewal management.

If you're a startup looking to streamline your contract management and accelerate your sales cycles, Common Paper is definitely worth checking out.