# Gearflow Financial Model B2B online marketplace for construction equipment parts, connecting contractors with a vetted multi-supplier catalogue. - Canonical: https://finamodel.com/startups/gearflow - Excel download: https://finamodel.com/startup-models/gearflow.xlsx - Category: Marketplace - Model type: SaaS ARR / Valuation - Funding round: Seed - Funding: $3M - Founded: 2021 - Geography: United States. - Customer: B2B ## About the company Gearflow is an online marketplace for construction-equipment parts, bringing OEM, aftermarket, refurbished, obsolete, and replica suppliers into one searchable catalog. It replaces fragmented, offline procurement with transparent availability and pricing for contractors. Suppliers gain a ready-made e-commerce channel and organic visibility for long-tail parts, while buyers can compare options through one storefront. The deck describes sixfold GMV growth and a straightforward 10% commission on every transaction, with fleet tools and data as possible future products. The model is a GMV and commission build. Buyer cohorts, repeat purchasing, average order value, and supplier catalog depth determine transaction volume, and the 10% take rate converts that volume into revenue. Marketing efficiency, supplier activation, order conversion, and repeat share are the key levers behind marketplace margin and cash burn. ## 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 Gearflow.com is the only transparent parts marketplace built for the construction equipment industry. It aggregates vetted part suppliers (OEMs, aftermarket, refurbished, obsolete, replica) into a single searchable storefront, replacing the offline, single-dealer procurement process contractors rely on today. Value to buyers: best price/availability across millions of genuine and aftermarket SKUs, one-stop procurement, dedicated customer support (1-800 line). Value to suppliers: turnkey e-commerce channel, organic SEO exposure for long-tail part numbers, no prior digital presence needed. ## Market - TAM: $45B annual US construction equipment parts spend - SOM (dollar): $21B from underserved small-to-mid contractors ($1M–$50M revenue) - TAM (companies): 3M US construction companies - SAM (companies): 750K contractors over $1M revenue - SOM (companies): 525K contractors between $1M–$50M revenue - Macro tailwind: Construction productivity -23% since 1990 vs. +309% for the overall economy (McKinsey) - parts procurement friction is a named cause. - No SAM dollar figure provided in deck. ## Revenue model - Commission / take-rate marketplace model: Gearflow earns a commission on each transaction. - Take rate: 10% of GMV - Revenue = GMV × 10% take rate. - Suppliers list inventory; buyers transact on platform. No subscription or listing-fee model disclosed in deck. - Future revenue levers (roadmap): fleet maintenance tooling, fleet valuation data, buyer dashboards - potential SaaS/data add-ons not yet monetised. ## Traction & metrics - GMV growth: "6x Growth" driven by organic demand; specific absolute GMV run-rate figure is redacted in the deck image. - Take rate confirmed at 10% - Timeline milestones shown: MVP Launch → Market validation & customer research → Angel fundraise → Replatform - April '21 GMV called out as a reference point; absolute value redacted - Power buyers: a subset of customers (% redacted) make up 50% of GMV - Repeat customers have higher GMV and AOV than one-time customers (chart directional, values redacted) - Supplier pipeline: 126 suppliers active & in queue; 700K SKUs live; 14.4M SKUs in queue - SEO moat: winning organic search for long-tail part numbers (e.g. "JCB Bush Part 332/K8544") - Customer testimonials indicate price competitiveness and loyalty ("never go anywhere else") ## Unit economics - Take rate: 10% gross margin on GMV - Power buyer cohort generates 50% of GMV; repeat customer AOV is higher than one-time customer AOV (relative, not absolute) - By 2023 target: 90% of core customers' parts spend to run through Gearflow - implies near-total wallet share capture as the LTV thesis. ## Competition / moat Competitive positioning (quadrant: Industry Specificity vs. True Modern Marketplace): - Incumbents: eBay, Amazon, Facebook Marketplace, Craigslist - generic, not construction-specific. - Industry incumbents: Brokers, Auctions, Listing Sites - industry-specific but not modern marketplaces. - Gearflow: only player at the intersection of construction-industry specificity AND true modern marketplace. Moat sources: 1. Trust / vetting - construction suppliers require pre-existing industry relationships; outsiders face a trust barrier to entry. 2. Long-tail SEO - wins organic search for specific part numbers that no other platform indexes properly. 3. Supplier lock-in - self-service tools and supplier self-sufficiency pipeline create switching costs. 4. Data network effect - parts attribution database informs personalised buying and future fleet management products. ## Team & funding ask / use of funds Team (slide 17): - Luke Powers - Founder, CEO - Ben Preston - Co-Founder, CMO (Performance & Content Marketing) - Sarah Wilcox - Director, Business Development (Heavy Equipment Industry Expertise) - Melissa Cristobal - Operations Coordinator (Customer Support) - Karen Scally - Content Specialist - Erik Cameron - Lead Software Engineer (Database Architecture & Product Development) - Michael Gingras - Software Engineer Round: Seed Use of funds: Unlock supplier self-sufficiency tools → personalise buying experience → unlock local dealers/OEMs → streamline fleet maintenance → fleet management reporting → auction avoidance tools. --- ## Recommended financial model **Archetype + why:** Marketplace GMV / commission revenue model. Gearflow's economics are pure marketplace: revenue = GMV × take rate (10%). The business scales on transaction volume, not headcount or inventory. A 3-statement integrated model should sit underneath, but the primary forecast logic is GMV-driven with commission revenue flowing to the P&L. **Forecast horizon & granularity:** - Monthly for Years 1–2 (2021–2022, to reflect early-stage cohort dynamics and the seed deployment curve). - Quarterly for Years 3–4 (2023–2024, per the deck's stated 2023 milestone). - 3-year model is minimum; 4-year preferred given the 2023 wallet-share target. **Key drivers & assumptions:** *Demand side (buyer)* - Active buyer count - starting base; growth rate - One-time vs. repeat buyer mix - power buyers drive 50% of GMV - AOV by cohort (one-time vs. repeat) - repeat AOV is higher; absolute values not in deck - Orders per repeat buyer per year - Wallet share capture - target 90% of core customers' parts spend by 2023; ramp from current base *Supply side (supplier)* - Active suppliers: 126 in pipeline; ramp driven by seed investment in self-service tools - SKUs live: 700K; path to 14.4M in queue - Supplier conversion rate from queue to live *Revenue* - GMV = active buyers × orders per buyer × AOV - Commission revenue = GMV × 10% take rate - Future SaaS/data revenue: not modelled until product ships [roadmap only; ASSUMED: not in base case] *Cost structure* - S&M: primarily SEO/content-driven; budget for supplier acquisition team - R&D / Engineering: core team of 2 engineers now; seed funds additional hires - G&A: small team, scale modestly **Scenarios (Base / Bull / Bear - which variables flex):** - Base: Wallet-share ramp to ~50% of core customers by 2023; buyer growth 50% YoY; 10% take rate held constant. - Bull: Wallet-share hits 90% target by 2023; faster supplier onboarding unlocks higher AOV selection; potential take-rate expansion to 12–13%. - Bear: Buyer growth slows to 25% YoY; wallet-share capture stalls at 30%; Amazon Business or an OEM aggregator enters the market; take rate under pressure. **Required sheets / outputs:** 1. Assumptions dashboard (all drivers in one place, colour-coded inputs) 2. GMV build (buyer cohorts × AOV × orders/year → gross GMV → net GMV after returns/cancellations) 3. Revenue & take-rate bridge (GMV → commission revenue) 4. P&L (revenue, COGS, gross profit, S&M, R&D, G&A, EBITDA) 5. Headcount plan (engineering, BD/supplier success, content/SEO, ops) 6. Cash & runway (seed proceeds, monthly burn, months to next raise) 7. KPI summary (GMV, active buyers, repeat buyer %, wallet share %, take rate, revenue, gross margin %) 8. Scenario toggle (Base / Bull / Bear) ## Frequently asked questions ### Is the Gearflow financial model free? Yes. The Gearflow 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.