# Island Financial Model Island builds an enterprise browser - a Chromium-based browser purpose-built for corporate IT/security control of web and SaaS access. - Canonical: https://finamodel.com/startups/island - Excel download: https://finamodel.com/startup-models/island.xlsx - Category: Enterprise/Security - Model type: SaaS ARR / Valuation - Funding round: Series B - Funding: $115M - Founded: 2022 - Geography: Not in deck (likely US-first given backers and enterprise SaaS targeting). - Customer: B2B ## About the company Island builds an enterprise browser based on Chromium and designed for corporate IT and security control of web and SaaS access. The product treats the browser as a managed security layer, giving organisations more direct control over how employees interact with business applications online. The company sells to enterprise IT and security buyers on annual contracts. Its natural unit of value is the employee seat covered by the browser, with scope for expansion as a customer rolls the product out from an initial team to a wider workforce. The model uses a per-seat enterprise ARR build with new logos, initial deployment size, rollout timing, expansion, and renewals. It ties sales capacity, deal cycles, product and support delivery costs, gross margin, security R&D, and operating expense 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 Island is a Chromium-based browser rebuilt for enterprises. It replaces the consumer browser (Chrome/Edge/Safari) as the primary enterprise access tool, eliminating the need for surrounding control infrastructure (VDI, proxies, SWGs, DLP agents, PAC files, SSL MITM). Key capabilities: - Last-mile controls: cut/copy/paste restrictions, screen capture, print/save, download/upload controls, automation scripts - Auditing, logging & forensics - Device posture assessment and enforcement - Integrated authentication - Agile network routing - Secure storage - Security tool integration - Management & policy engine Key use-cases: - Critical SaaS & Web App access (Salesforce, ServiceNow, Workday, O365) - Contractor / BYOD access (replaces MDM) - M&A / JV / divestiture integration - VDI reduction - Privileged admin access - Zero-Trust access completion - Safe browsing / native browser isolation - Regulatory & legal compliance ## Competition / moat Moat articulated qualitatively: - Replacing entire category of bolt-on security tools (VDI, SWG, proxies, EDR, DNS filtering, endpoint agents) with a single native browser - Built on Chromium - same rendering engine as Chrome/Edge, so end-user experience is unchanged - "Last-mile" control at the application layer rather than network layer - Deep integration into enterprise identity, device posture, and security stack Competitors not named in deck. Implied competition: consumer browsers (Chrome, Edge, Safari), VDI vendors (Citrix, VMware Horizon), SWG/SASE vendors (Zscaler, Netskope), CASB solutions. ## Team & funding ask / use of funds Team: - Mike Fey - CEO & Co-Founder - Dan Amiga - CTO & Co-Founder - Brian Kenyon - Chief Strategy Officer - Ellen Roeckl - Chief Marketing Officer - Daniel Kandel - VP R&D - Jennifer Park - Chief People Officer - Bradon Rogers - Head of Presales, Customer Success & Product Marketing - Eric Appel - Head of Sales Board / Investors: - Gili Raanan (Cyberstarts - Founder & General Partner) - Doug Leone (Sequoia - Global Managing Partner) - Jeff Horing (Insight Partners - Managing Director) - Ken Fox (Stripes - Managing Director) --- ## Recommended financial model - **Archetype + why:** Enterprise SaaS ARR model with per-seat subscription. Island sells to enterprise IT/security buyers on annual contracts; the natural unit is seats (employees covered by the browser). This is a direct ARR/ARR-expansion model analogous to other endpoint security SaaS companies (CrowdStrike, SentinelOne). No marketplace or usage-based dynamic visible in deck. - **Forecast horizon & granularity:** 5 years (Year 1–5), quarterly in Years 1–2, annual in Years 3–5. Early-stage company with no disclosed revenue - quarterly granularity in near term is needed to model the ramp. - **Key drivers & assumptions:** | Driver | Value | Source | | -- | -- | -- | | Starting year | 2022 (likely first commercial year) | - | | Target customer segment | Enterprise (500–50,000 seats) | - | | Average contract size (ACV) | $50–$150 per seat/year | - | | Average deal size (seats) | 2,000–10,000 seats | - | | Initial customer count (Y1) | 10–25 customers | - | | YoY new logo growth | 100–150% in Y1–Y2, decelerating to 50% by Y5 | - | | Net Revenue Retention (NRR) | 120% | - | | Gross margin | 75–80% | - | | S&M as % of revenue | 50–60% (Y1–Y2), declining to 35% by Y5 | - | | R&D as % of revenue | 30–35% | - | | G&A as % of revenue | 10–15% | - | | CAC payback period | 18–24 months | - | - **Scenarios (Base / Bull / Bear - which variables flex):** - **Bull:** Faster enterprise adoption (VDI displacement accelerates), ACV at high end ($150/seat), NRR 130%+, S&M efficiency improves early. - **Base:** Steady logo growth 100% Y1–Y2 → 50% Y4–Y5, ACV $100/seat, NRR 120%, gross margin 78%. - **Bear:** Long enterprise sales cycles (9–12 months), ACV pressure from bundled SASE/SSE vendors, NRR 110%, gross margin 72% (heavier cloud costs). - **Flex variables:** New logo count, ACV per seat, NRR, CAC payback, S&M spend. - **Required sheets / outputs:** 1. **Assumptions** - all driver inputs, scenario toggle 2. **ARR Bridge** - new ARR, expansion ARR, churn ARR, ending ARR by quarter/year 3. **Income Statement** - revenue, COGS, gross profit, S&M, R&D, G&A, EBITDA, net income 4. **Unit Economics** - CAC, LTV, LTV:CAC, CAC payback, gross margin per cohort 5. **Headcount** - sales, R&D, G&A headcount plan tied to revenue ramp 6. **Cash Flow / Runway** - operating cash flow, funding assumption, cash balance 7. **KPI Dashboard** - ARR, ARR growth %, NRR, logo count, gross margin %, Rule of 40 ## Frequently asked questions ### Is the Island financial model free? Yes. The Island 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.