# Equinom Financial Model

Equinom develops genetically optimised ("smarter") seeds for plant-based protein crops, enabling food manufacturers to skip expensive factory processing by doing the work in the field.

- Canonical: https://finamodel.com/startups/equinom
- Excel download: https://finamodel.com/startup-models/equinom.xlsx
- Category: Biotech/Pharma
- Model type: Startup Valuation
- Funding round: Series C
- Funding: $20M
- Founded: 2021
- Geography: Israel (HQ, 38 employees) and USA (7 employees). [DECK, slide 2]
- Customer: B2C

## About the company

Equinom develops multi-trait seeds for sesame, soybean, yellow pea, and special grains. Its Golden Traits cover protein content, oil richness, taste, solubility, protein and starch composition, and yield, allowing crops to perform more of the ingredient-processing work before they reach a factory.

The proposition is cleaner-label food ingredients with improved functionality, nutrition, and environmental footprint, while reducing extraction steps. Revenue is implied to come from improved seed sales and licensing to agricultural producers or food ingredient companies; the deck gives no price, royalty rate, units, customers, or historic revenue.

Equinom had four approved patents and seven pending, with 45 employees across Israel and the U.S. Investors include BASF, Roquette, Danziger, Trendlines, and Hazera, supporting a strategic-partnership thesis. The model should forecast seed volume, acres planted, licensing, breeding R&D, distributor relationships, and crop-adoption cycles.

## 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

- Proprietary multi-trait seed breeding platform targeting sesame, soybean, yellow pea, and special grains.
- Key "Golden Traits" engineered into seeds: high protein content, oil richness, enhanced organoleptic properties, improved solubility, protein/starch composition, robust yield.
- Core claim: seeds pre-process the ingredient in the field, eliminating the need for factory protein-extraction processing.
- Customer value delivered: efficient production, improved neutral taste, enhanced functionality, clean label, increased nutritional value, reduced environmental footprint.
- Outputs: protein, oil, and starch from the same seed.

## Market

- Headline opportunity cited: "$5 billion opportunity through multi-trait breeding." - no TAM/SAM/SOM breakdown, no source cited.
- Market framing: plant-based protein ingredient supply chain. Supply chain cost cascade shown:
  - Raw yellow pea: $300/ton
  - Pea protein (after processing): $5,000/ton
  - Plant-based patties: $25,000/ton
- Plant-based patty carries a 250% cost premium vs. beef at the end consumer level.
- No market growth rate or addressable market sizing beyond the $5B figure in the deck.

## Revenue model

- Not explicitly stated in deck. Model is implied to be seed sales and/or licensing of improved seed varieties to agricultural producers or food ingredient companies.
- Products: Soybean, Pea, Sesame, & Special Grains seeds.
- Investors include BASF, Roquette (major ingredient/food companies), and Danziger, Trendlines, Hazera (agri/agtech funds) - suggesting strategic licensing/partnership revenue model is likely.
- No pricing, royalty rates, or revenue figures disclosed.

## Traction & metrics

- Patents: 4 approved, 7 pending.
- Headcount: 38 Israel + 7 USA = 45 total employees.
- Founded: 2012.
- Named investors visible on slide: Fortissimo Capital, Danziger, BASF, Trendlines, Roquette, Hazera.
- No revenue, ARR, customer count, units sold, or growth rate disclosed.

## Competition / moat

- Competitive framing is indirect: existing supply chain players (commodity pea farmers → protein extractors → food manufacturers) rather than named seed competitors.
- Moat levers implied: 4 approved + 7 pending patents; proprietary multi-trait breeding IP; strategic investor base includes BASF and Roquette (potential channel/distribution lock-in).
- No direct competitor named or benchmarked.

## Team & funding ask / use of funds

- Contact: gils@equi-nom.com (likely Gil Shalev, presumably CEO/founder).
- No named team slide, no funding ask amount, no use-of-funds breakdown in deck.

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## Recommended financial model

- **Archetype + why:** Seed licensing / agbiotech revenue model - specifically a hybrid of (a) seed royalty/trait licensing revenue and (b) direct seed sales. This mirrors standard agbiotech models (e.g. Bayer Crop Science, Calyxt, Yield10). The company controls IP and breeds improved varieties; revenue comes from per-unit royalties or per-acre fees paid by growers, plus potential B2B supply agreements with ingredient companies like Roquette. A 3-statement operating model with a detailed revenue build by crop/variety is appropriate.

- **Forecast horizon & granularity:** 5 years (Year 1–5), annual granularity. Monthly not warranted given no near-term revenue data.

- **Key drivers & assumptions:**

| Driver | Value / Source |
| -- | -- |
| Addressable market (seed opportunity) | $5B - no breakdown; treat as aspirational ceiling |
| Core crops | Pea, Sesame, Soybean, Special Grains |
| Revenue mechanism | Seed royalty per ton OR licensing fee per hectare |
| Royalty rate / seed premium | ~15–25% premium over commodity seed price, consistent with trait-licensed seed industry norms |
| Planted area growth (Year 1→5) | Start small (pilot acres/partner agreements), ramp as variety approvals accumulate |
| Patent approval pipeline | 4 approved, 7 pending; pending converts to approved over forecast horizon, expanding addressable crop varieties |
| Headcount cost base | 45 employees at time of deck; R&D-heavy cost structure (~60–70% of opex in salaries/lab) |
| Raw-to-processed cost gap addressed | 16.7x gap (yellow pea $300 → pea protein $5,000/ton); Equinom's value claim is capturing part of this spread |
| COGS | Seed production and breeding costs; low marginal cost once variety is developed - high gross margin potential (60–80%) consistent with IP/licensing businesses |
| R&D spend | Significant; two-location team (Israel R&D, US commercial) |

- **Scenarios (Base / Bull / Bear):**
  - **Bear:** Patent pending conversions delayed; slow commercial adoption; 1–2 crops generating royalties by Year 3.
  - **Base:** 2–3 crop varieties commercialised by Year 2–3; 1 strategic supply agreement with an ingredient major (e.g. Roquette-type partner); steady royalty ramp.
  - **Bull:** Rapid patent approval + 3–4 commercial varieties; multiple ingredient-company partnerships; seed premium capture accelerates; potential licensing deal with a large agribusiness (e.g. BASF-led deal given investor relationship).

- **Required sheets / outputs:**
  1. Assumptions dashboard (all drivers in one place)
  2. Revenue build - by crop variety × volume (tons/hectares) × royalty/premium rate
  3. P&L (Income Statement) - Revenue, COGS, Gross Profit, R&D, G&A, EBITDA
  4. Simplified Balance Sheet (working capital, IP assets, cash)
  5. Cash Flow Statement (operating CF, R&D capex, funding rounds)
  6. Runway / funding bridge (given pre-revenue / early-revenue stage)
  7. Scenario toggle (Bear / Base / Bull on key volume and pricing drivers)

## Frequently asked questions

### Is the Equinom financial model free?

Yes. The Equinom 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.