# Compliable Financial Model

B2B SaaS platform managing licensing and compliance for sports betting operators and regulators.

- Canonical: https://finamodel.com/startups/compliable
- Excel download: https://finamodel.com/startup-models/compliable.xlsx
- Category: Enterprise/Security
- Model type: SaaS ARR / Valuation
- Funding round: Seed
- Funding: $3.6M
- Founded: 2021
- Geography: United States (multi-state sports betting rollout); international operators also in pipeline [DECK slide 2].
- Customer: B2B

## About the company

Compliable provides licensing and compliance software for sports-betting operators and regulators. The platform addresses an industry where market entry and ongoing operations depend on managing rules, licences, and evidence across multiple jurisdictions.

The company sells recurring SaaS access primarily to operators, with a secondary route to state regulators. Its value increases as customers enter new markets and need to manage a broader regulatory footprint without relying on disconnected manual processes.

The model uses an ARR build driven by new operators, jurisdictions per customer, platform pricing, expansion, and churn. It also tracks regulator contracts separately where relevant, then connects implementation effort, gross margin, sales investment, and overhead to the cash runway.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- Cloud-based platform for managing licenses across sports betting operators and states.
- Serves two customer types: (1) operators (sportsbooks) who need licensing compliance tools; (2) state regulators who want integration/oversight tools built on top of the operator feature set.
- Patent pending: "Cloud Based Platform for Managing Licenses".
- Value prop: centralised compliance workflow as new states legalise sports betting, reducing manual licensing burden for Tier 1 operators.

## Market

- No TAM/SAM/SOM figures in deck.
- Directional market signal: 6+ states going live with sports betting in next 12 months.
- Customers referenced as "Large US (Billions)" (market cap) and "Large International ($bs / $100ms in market cap)" - implies Tier 1 sportsbook addressable market is multi-billion in operator scale, but no addressable revenue figure provided.

## Revenue model

- Recurring subscription / ARR per operator.
- No contract values, per-seat pricing, or revenue per operator disclosed in deck.
- Footnote on slide 2: "See model for additional pricing and pipeline details" - implying a separate financial model exists with pricing specifics, not provided here.
- Two emerging channels: (1) Vendor/Affiliate channel via Tier 1 sportsbook feature builds; (2) Regulator tools sold/licensed to state regulators.

## Traction & metrics

- Signed and Active customers (ARR, renewing year-end): FanDuel, Sport Trade.
- Pilots Pending: 3 x "Large US (Billions)" operators - identities redacted.
- Contracts in Negotiation (terms verbally agreed): 2 x "Large International ($bs in market cap)" + 1 x "Large International ($100ms in market cap)".
- Total capital raised to date: $2.8m.
- No revenue figures, ARR value, churn rate, or growth rate disclosed.

## Competition / moat

- Moat: pending patent ("Cloud Based Platform for Managing Licenses") being actively prosecuted.
- No named competitors in deck.
- Competitive strategy: build deep integration features for Tier 1 operators to create sticky Vendor/Affiliate channels; develop regulator-facing tooling as a secondary lock-in.
- Colorado state regulator integration trial interest cited as further moat signal.

## Team & funding ask / use of funds

**Team**:
- Chris Oltyan, CEO - 9-time serial entrepreneur, 3 exits, 30+ software products, raised $2.8m for Compliable.
- Ben Neil, CTO - software architect; prior projects include Pokémon, Riot Games, Sony (large-scale infrastructure).
- Rich Grote, CRO - Techstars veteran, founder with multiple exits, ran two accelerators.
- Justin Stempeck, CCO - former Head of Licensing at DraftKings; joining as Chief Compliance Officer.

**Funding ask**: Amount not stated. Described as an "opportunistic round".

**Use of funds**:
- Hire: CCO (Justin Stempeck), 2 Software Engineers, 1 Sales Associate/Admin, 1 Customer Success Associate.
- Patent prosecution: "Cloud Based Platform for Managing Licenses".
- Sales funnel acceleration and Vendor/Affiliate channel build.
- State launch readiness (infrastructure/ops for simultaneous multi-state go-live).

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## Recommended financial model

**Archetype + why**: SaaS ARR model with pipeline-stage probability weighting.
The business is a B2B recurring-revenue SaaS with a named, enumerable customer pipeline segmented by stage (signed, pilot, negotiation). This maps directly to an ARR build-up model - contract wins flow into MRR, which compounds as new states launch. A simple 3-statement would lose the granularity that makes this deck's story legible; pipeline-stage ARR is the right lens.

**Forecast horizon & granularity**: 3 years (monthly for Year 1, quarterly for Years 2–3). Monthly matters because state launches are discrete events and pipeline conversions are lumpy.

**Key drivers & assumptions**:

| Driver | Value / Assumption |
| -- | -- |
| Signed ARR at model start | Unknown - 2 customers (FanDuel, Sport Trade) |
| ACV per operator (Tier 1 US) | $150k–$300k/yr - enterprise RegTech SaaS for large sportsbooks; no pricing disclosed |
| ACV per operator (International) | $100k–$200k/yr - slightly lower given market cap range suggests mid-large |
| ACV per state regulator | $50k–$100k/yr - government procurement typically lower; pilot with Colorado cited |
| Pilot-to-signed conversion rate | 50% - 3 large pilots pending; Tier 1 conversion in regulated software is moderate |
| Negotiation-to-signed conversion rate | 70% - "terms verbally agreed" indicates late-stage |
| Average sales cycle (pilot to signed) | 6 months - enterprise regulated software; state licensing processes are slow |
| New states going live (next 12 months) | 6+ |
| New logo adds per year post-raise | 2–4 new operators in Year 1 driven by state launches; accelerating in Y2–3 |
| Gross margin | 75–80% - SaaS with cloud infra; no COGS detail in deck |
| Churn rate (annual) | 5% - sticky compliance product, renewing ARR noted; FanDuel renewal flagged |
| Headcount ramp | 5 new hires post-raise; Y2–3 sales-led growth adds 2–3 per year |
| Avg fully-loaded employee cost | $120k–$150k all-in - US tech market for engineers + sales |
| Capex / R&D | 15–20% of revenue reinvested in product; patent costs ~$30k–$50k one-time |
| Regulator channel revenue | Year 2 onset; slower ramp than operator channel |

**Scenarios (Base / Bull / Bear - which variables flex)**:
- **Base**: 50% pilot conversion, 70% negotiation conversion, 3 new logos/yr, 5% churn, ACV midpoints.
- **Bull**: All 3 pilots sign + all 3 international deals close within 12 months; 6+ states launch adding 2 new logos each; ACV at top of range; regulator channel adds revenue in Year 1.
- **Bear**: 1 pilot converts, international deals slip 12 months, 1 existing customer churns, no regulator revenue in forecast period, hiring delays.

**Required sheets / outputs**:
1. **Assumptions** - all drivers in one editable table (pricing, conversion rates, headcount, raise amount).
2. **Pipeline Build** - stage-by-stage ARR waterfall: Signed → Pilot → Negotiation → New Logos; monthly timing per customer.
3. **ARR Waterfall** - Opening ARR + New ARR + Expansion − Churn = Closing ARR; monthly Y1, quarterly Y2–3.
4. **P&L (Income Statement)** - Revenue, Gross Profit, OpEx (S&M, R&D, G&A), EBITDA, Net Income.
5. **Headcount Plan** - role-by-role hiring schedule with salary inputs.
6. **Cash & Runway** - burn rate vs raise proceeds; months of runway by scenario.
7. **Scenario Toggle** - Base / Bull / Bear switch feeding all output sheets.

## Frequently asked questions

### Is the Compliable financial model free?

Yes. The Compliable model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.