# Gravity Sketch Financial Model Intuitive VR/AR/cross-platform 3D design and real-time collaboration software for industrial design teams. - Canonical: https://finamodel.com/startups/gravity-sketch - Excel download: https://finamodel.com/startup-models/gravity-sketch.xlsx - Category: Enterprise/Security - Model type: SaaS ARR / Valuation - Funding round: Seed - Funding: $3.7M - Founded: 2020 - Geography: UK-headquartered; global enterprise customers and university partnerships. - Customer: B2C ## About the company Gravity Sketch provides intuitive VR, AR, and cross-platform 3D design software for industrial design teams. It gives designers a collaborative way to create and review three-dimensional concepts, rather than relying only on slower, conventional modelling workflows. The product is sold through tiered cloud subscriptions for Pro, Studio, and Enterprise users. This creates a path from individual designer adoption to team collaboration and larger corporate deployments, where shared workflows and enterprise controls can support higher account value. The model uses tiered subscription ARR, with designers, team seats, and enterprise accounts as drivers. It tracks free or trial conversion, product adoption, upgrades, churn, and expansion, then connects cloud delivery, customer support, sales investment, and R&D to gross margin and 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 - Gravity Sketch is a 3D design and collaboration platform built from the ground up for VR/AR, mobile, and desktop. - Core pitch: collapses the traditional 3D→2D→3D product design cycle (3–4 months) to ~2 weeks. - Key differentiators: intuitive gestural interaction (no CAD training required); real-time multi-user co-creation rooms; NURBS + Subdivision geometry engine for seamless CAD import/export; cross-platform (VR, AR, mobile, desktop, web). - Vision: full-suite "Landing Pad" cloud platform - Gravity Sketch (creation), Presentation, Curate & Capture, Publish Experiences - all connected via a cloud layer. - Customer quote: "20 hours in Gravity Sketch vs. months with traditional tools" - Michael Smith, Ford. ## Market - Adjacent context: Graphic Design TAM $24bn; Product Design TAM $48bn. - Addressable TAM by phase (company's own segmentation): - 2018–19: Transportation (auto) - $0.2bn TAM - 2020–21: Transportation (general + aerospace) + Consumer Products + Entertainment - $7bn TAM - 2022+: All above + Engineering + Architecture + Apparel - $10bn TAM ## Revenue model - Cloud subscription SaaS with three tiers: - **PRO**: Freelancers / small studios. 6 Co-Creation rooms, 100GB storage, remote support (chat/email). - **STUDIO**: Mid-size enterprises. 20 Co-Creation rooms, 250GB storage, enterprise security, management portal. - **ENTERPRISE**: Large multinationals. 40 Co-Creation rooms, 250GB storage, onsite training, phone support. - Infrastructure: AWS VPC, SSL-encrypted, elastic load balancing. - Route to market: community-led (50,000 creative professionals funnel B2B leads); university seeding (32 institutions); hardware OEM partnerships (Oculus, HP, Wacom, Varjo). ## Traction & metrics - Community size: 50,000 creative professionals - Educational institutions: 32 globally; 9 are "Excellence Centers" with Gravity Sketch in curriculum - Tier 1 enterprise customers: Ford, Nissan (named); Oculus, HP, Wacom, Varjo as hardware partners - Case study references: Honda USA, Reebok, Avatar (film sequels) - Funding raised: £1.25m Seed (2018, Forward Partners) + £1.5m grant funding ## Competition / moat - Old guard (product design): Autodesk, Dassault Systèmes, Siemens - New entrants (graphic design / 2D SaaS - cited as analogues): InVision ($115m Series F, 2018), Sketch ($20m Series A, 2019, Benchmark), Figma ($40m Series C, 2019, Sequoia) - Gravity Sketch positions itself as the "leading innovator in the digital 3D design industry" - the only real-time, gestural, cross-platform, collaborative 3D tool built for industrial workflows - Moat claims: community lock-in; OEM hardware integrations; university pipeline seeding future designers; geometry engine built for CAD interoperability ## Team & funding ask / use of funds - **Daniela Paredes** - Co-Founder & CXO: industrial design background (Miji); named UK's 50 most innovative women 2019 - **Oluwaseyi Sosanya** - Co-Founder & CEO: design for manufacturing (Land Rover, HP, Lenovo); Fellow of Royal Academy of Engineers - **Daniel Thomas** - Co-Founder & CTO: theoretical physics (Cambridge); self-taught engineer; 1/4M app users - **Ke Ren** - Head of Engineering: serial startup architect; award-winning MMO games; two exits; ex-Improbable - **Dae Ho Lee** - Head of Operations: management consulting + VC background --- ## Recommended financial model - **Archetype + why**: B2B SaaS ARR model with a seat/tier mix. Revenue is recurring cloud subscription across three tiers (Pro, Studio, Enterprise); enterprise contracts are likely annual with upsell mechanics (seat count, co-creation rooms). This maps cleanly to a tiered-SaaS ARR build, not a transaction or usage-based model. - **Forecast horizon & granularity**: 5-year (2020–2024), monthly for Years 1–2 (to track early enterprise ramp and cohort expansion), quarterly for Years 3–5. A short-term 13-week cash flow overlay is advisable given early seed stage. - **Key drivers & assumptions**: - New enterprise logos per quarter: start at 2–3/quarter in auto vertical, scaling as verticals expand post-2020; no deck number. - Average seats per Studio deal: ~10–25 seats; per Enterprise deal: ~50–100 seats. No deck number. - Pro tier ASP (£/user/month): ~£30–50; Studio: ~£60–90; Enterprise: custom/£100–200+. No price in deck. - Net Revenue Retention (NRR): 110–120% (seat expansion within accounts is the core growth motion, given community→enterprise funnel). - Community-to-paid conversion rate: 1–3% of 50,000-user community as a Pro pipeline. - Gross margin: 70–80% (AWS hosting + customer success headcount; typical B2B SaaS at this scale). - Sales cycle: 3–6 months for Enterprise (automotive OEM procurement is slow); Pro can be self-serve/PLG. - Headcount: current team ~10–15; model should include hiring plan for sales/CS to support enterprise ramp. - Grant funding: £1.5m - treat as non-recurring other income, not revenue. - TAM expansion by vertical: use deck's own phase timeline - auto 2018–19 → $7bn 2020–21 → $10bn 2022+. - **Scenarios (Base / Bull / Bear - which variables flex)**: - **Base**: 3 new enterprise logos/quarter; NRR 115%; Pro self-serve growing at 5%/month from community pool. - **Bull**: OEM hardware partnerships (Oculus Quest mass-market launch) accelerate enterprise pull-through; NRR 130%; vertical expansion 1 year ahead of schedule. - **Bear**: VR hardware adoption slower than expected; enterprise sales cycles extend to 9+ months; NRR 100%; grant income non-renewable. - **Required sheets / outputs**: 1. Assumptions dashboard (all drivers, tagged or) 2. ARR build - by tier (Pro, Studio, Enterprise); new logos, churned logos, expanded ARR, ending ARR 3. Revenue bridge - MRR waterfall (new, expansion, churn) 4. P&L - Revenue, COGS (hosting, CS), Gross Profit, S&M, R&D, G&A, EBITDA 5. Headcount plan - by department, tied to revenue milestones 6. Cash flow & runway - burn rate, months of runway given existing seed + grants 7. KPI summary - ARR, ARR growth %, NRR, CAC, LTV, LTV:CAC, payback period 8. Scenario toggle - Base / Bull / Bear ## Frequently asked questions ### Is the Gravity Sketch financial model free? Yes. The Gravity Sketch 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.