11  Financial Model — Structure & Assumptions

Audience: investors. Purpose: the assumptions/structure doc that sits alongside the spreadsheet model. Reference: Bessemer cloud metrics; SaaStr; Tomasz Tunguz on SaaS metrics; C3.ai / Samsara 10-K metric definitions. The model itself lives as a spreadsheet; this doc records the logic so it’s auditable.

11.1 Revenue model

• Subscription tiers (Starter / Professional / Enterprise) — see PRD Appendix H.2.
• Implementation & integration (one-time): SCADA/historian mapping, 3D model ingestion.
• Success & support (recurring): retraining + integrity-engineering support.
• Partner-integrated delivery revenue split (OI.Expert) — define gross vs. net.

11.2 Key assumptions to make explicit

• ACV per facility per tier; expansion (facilities/year per logo).
• Sales cycle length (enterprise OT — long; pilot → production conversion rate).
• Pilot economics: pilot fee, credit against Year 1, conversion %.
• CAC and CAC payback; gross margin (note self-hosted LLM / GPU cost in on-prem).
• Net revenue retention; logo churn.
• Burn, runway, headcount plan.

11.3 The raise

• Amount, use of funds, the milestones it buys (e.g., SOC 2, SAP PM connector, N reference customers).

11.4 Metrics investors will expect (define each)

ARR, ACV, gross margin, CAC payback, NRR, magic number, burn multiple. Use Bessemer/Tunguz definitions so numbers are comparable to benchmarks.