# Craft.io Financial Model

SaaS product management platform that serves as a unified system-of-record for digital product teams.

- Canonical: https://finamodel.com/startups/craftio
- Excel download: https://finamodel.com/startup-models/craftio.xlsx
- Category: Enterprise/Security
- Model type: SaaS ARR / Valuation
- Funding round: Series A
- Funding: $8M
- Founded: 2021
- Geography: Not explicitly stated; named customers (Kimberly-Clark, Fannie Mae) suggest US-primary with likely global reach given prior Google/Booking.com/Taboola background of founders.
- Customer: B2B

## About the company

Craft.io is a product-management platform that acts as a system of record for digital product teams. It brings feedback, feature definition, prioritisation, capacity planning, roadmap visualisation, and execution into a connected workflow.

The company serves both enterprise and mid-market software organisations, with a higher-touch proof-of-concept and onboarding path for larger accounts alongside a more transactional self-serve path for smaller customers. Its positioning is centred on reducing disconnected tools and alignment gaps.

The model builds ARR from new enterprise and self-serve customers, team-based pricing, expansion, and churn. Separate funnel assumptions reflect the two sales motions, while implementation support, gross margin, marketing, sales hiring, and operating expenses determine the 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

- End-to-end product management platform for the "entire team" spanning vision, strategy, roadmap, prioritisation, capacity planning, roadmap visualisation, and execution.
- Positioned as a "system-of-record" for product - a single source of truth integrated into existing engineering/delivery processes.
- Six core workflow modules: Feedback → Feature Definition → Prioritisation → Capacity Planning → Roadmap Visualisation → Execution, plus third-party integrations.
- Addresses three pain points: disconnected tools creating duplicative work; knowledge-dissemination gaps; mistrust between business and technology units.

## Market

- TAM chart shown across three horizons (2021 → 2023 → 2025) with three expanding layers, but all dollar values are redacted as "$xxB" - no numeric TAM disclosed.
- Three-tier market framing:
  - 2021 horizon: tools for product managers in large organisations (workflow / skeleton layer).
  - 2023 horizon: product data / customer understanding layer.
  - 2025 horizon: enterprise product data integration layer (full organisational scope).
- Third-party growth signals cited:
  - "By 2023, over 75% of product managers will leverage product management and roadmapping tools."
  - Digital adoption index (McKinsey): 20 → 20 → 36 → 58 (June 2017, May 2018, Dec 2019, July 2020), described as 3 years ahead of the 2017–2019 adoption rate.
  - 60% of customer interactions are now digital (McKinsey).
  - "80% of IT organizations will experience radical restructuring to embrace the product management operating model."

## Revenue model

- SaaS subscription platform. Specific pricing tiers, ARPU, or seat-based vs. usage-based structure not disclosed in deck.
- GTM channels: paid + organic inbound (50/50 split targeting MQLs) → email/in-app SQL conversion; opportunistic outbound via outsourced SDR and events.
- Segmented sales: large-value customers → light/full POC with CS involvement; small-value customers → transactional self-serve sales path.
- High-touch onboarding for enterprise (e.g. Kimberly-Clark, Fannie Mae referenced as named enterprise logos).

## Competition / moat

- Not explicitly shown as a competitor slide; however, the deck frames Craft.io as differentiated from "suboptimal project management tools" (implied: Jira, Asana, Monday, Aha!, ProductBoard).
- Moat framing: product-management-specific depth (vs. generic project management), integration layer, and enterprise knowledge-dissemination capability.

## Team & funding ask / use of funds

- Co-Founder, CEO: Elad Simon - prior roles: Google (Head of SMB Marketing, EMEA), Taboola (VP SMB and Media Ops).
- Co-Founder, CPO & CTO: Roni Ben-Aharon - prior roles: Wix (Head of Wix Insights), Booking.com (ML Product Manager).
- Advisors: Amir Shevat (CPO, Reshuffle / ex-Google), Asaf Gover (VP Product, Taboola), Roi Carmel (CEO, Spotlight.ai / ex-HP).

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## Recommended financial model

- **Archetype + why:** SaaS ARR model. Craft.io sells a B2B subscription platform to enterprise and mid-market teams; the natural unit of value is ARR built from new bookings, expansion, and churn. A seat-based or team-based driver structure fits the stated segmentation (large enterprise vs. self-serve SMB). A lightweight 3-statement wrapper is worth including to show cash burn and runway.

- **Forecast horizon & granularity:** 3 years (2021–2023 monthly for years 1–2, then annual for year 3), matching the company's own TAM phasing. Monthly granularity needed to model sales ramp and cash burn for fundraising purposes.

- **Key drivers & assumptions:**

| Driver | Value |
| -- | -- |
| Starting ARR | Unknown |
| New logo adds per month (enterprise) | 2–4 per month |
| New logo adds per month (SMB/self-serve) | 10–20 per month |
| Enterprise ACV | $30–60k |
| SMB ACV | $5–15k |
| Net Revenue Retention | 110–120% |
| Gross logo churn (annual) | 10–15% |
| Gross margin | 70–75% |
| S&M % of revenue | 50–60% |
| R&D % of revenue | 25–35% |
| G&A % of revenue | 10–15% |
| Payback period | 18–24 months |
| Paid/organic inbound split | 50/50 |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - Base: 3 enterprise logos/month, 12 SMB/month, NRR 115%, churn 12%.
  - Bull: 5 enterprise logos/month, 20 SMB/month, NRR 125%, churn 8% (faster product-led expansion in large orgs).
  - Bear: 1 enterprise logo/month, 5 SMB/month, NRR 105%, churn 18% (market slower to adopt dedicated tooling, enterprise sales cycles extend).

- **Required sheets / outputs:**
  1. Assumptions - all drivers in one place, colour-coded, no hardcodes in formula cells.
  2. ARR Bridge - monthly waterfall: opening ARR, new bookings, expansion, churn, closing ARR.
  3. Income Statement - revenue, COGS, gross profit, S&M, R&D, G&A, EBITDA, net income.
  4. Cash Flow - operating CF, capex, financing (funding rounds), ending cash / runway.
  5. Balance Sheet - simplified (cash, deferred revenue, equity).
  6. KPI Summary - ARR, logo count (enterprise / SMB), NRR, CAC, LTV, LTV:CAC, gross margin, burn, runway.
  7. Scenario toggle - Base / Bull / Bear selector feeding all outputs.

## Frequently asked questions

### Is the Craft.io financial model free?

Yes. The Craft.io 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.