# iTrustCapital Financial Model Crypto IRA software platform enabling 24/7 buy/sell of cryptocurrencies and precious metals inside tax-advantaged retirement accounts - Canonical: https://finamodel.com/startups/itrustcapital - Excel download: https://finamodel.com/startup-models/itrustcapital.xlsx - Category: Crypto/Web3 - Model type: SaaS ARR / Valuation - Funding round: Series A - Funding: $125M - Founded: 2022 - Geography: USA (headquartered Long Beach, CA; North America focus) [DECK, slide 2] - Customer: B2B2C ## About the company iTrustCapital provides crypto and precious-metal trading inside tax-advantaged US retirement accounts, combining account administration with 24/7 alternative-asset access. The platform’s business is a hybrid of recurring software or account fees and transaction-based revenue earned as investors trade within their IRAs. The Long Beach-based company was seeking $100 million of Series A growth equity, with a North American focus. Unlike a pure broker, its customer relationship also includes retirement-account compliance and custody workflows; unlike a pure custodian, investor trading activity remains an important revenue driver. Forecast new and active accounts, contributions and transfers, assets under administration, asset allocation, trades per account, and transaction yield. Add account fees as a distinct recurring line, then deduct custody, clearing, compliance, service, and acquisition costs. AUA growth, crypto and metals trading activity, take rate, account retention, and contribution flows should drive the scenario analysis. ## 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 software platform connecting individual IRAs to real-time crypto/precious-metals trading - 20+ cryptocurrencies + gold + silver; 24/7 trading access - Manages settlement, custody (institutional-grade wallet providers), IRS/tax reporting, compliance, and client service on behalf of clients - Onboarding handles IRA transfers, rollovers, and new contributions seamlessly - Value prop vs. peers: lowest fees among tax-advantaged crypto IRA providers; simplifies an otherwise complex, regulated process - Founded 2018; launched 2019; bootstrapped from inception ## Market - ~$12T US IRA assets - 60M US households own IRAs - Average US IRA balance ~$157,000 - >20M active US crypto investors (14% of US population) - Self-directed retirement accounts grew 3x from 2017–2020 ## Revenue model Three fee streams confirmed in deck: 1. **Monthly account fee:** $29.95/month per funded account 2. **Crypto trade fee:** 1% per trade (both buy and sell implied) 3. **Precious metals spread:** Gold - $50 over spot per ounce; Silver - $2.50 over spot per ounce Revenue is a function of: - Number of active/funded accounts × monthly fee - Transaction volume × blended take-rate (predominantly the 1% crypto fee given crypto dominance of volume) No tiered pricing, no institutional/B2B offering, no custodial fee mentioned in deck. ## Traction & metrics As of 9/30/21: - 18,000 active monthly clients - Average account size >$80,000 - $3B total transaction volume (cumulative from launch) - 4.6-star TrustPilot rating (>1,400 reviews) - "Highly Profitable" - explicitly bootstrapped, no external capital prior to this round YoY growth metrics (2020→2021 YTD as of 9/30/21): - Revenue: +3,296% - Transaction Volume: +3,781% - Assets on Platform: +2,180% - Accounts Created: +950% - Funded Accounts: +844% Note: bar charts on slide 3 confirm the 2019→2020→2021 hockey-stick visually but provide no labelled axis values beyond what is stated above in text. ## Unit economics - Average account size >$80,000 → at 1% trade fee, one crypto round-trip = ~$1,600 gross revenue per account if full balance traded - Monthly subscription: $29.95/month = $359.40/year per funded account - Gross / EBITDA margins: Not explicitly stated; "highly profitable" claimed ## Competition / moat Competitive positioning matrix (slide 4) - low-fee vs. high-fee axis / tax-disadvantaged vs. tax-advantaged axis: - Tax-advantaged + low-fee quadrant: iTrustCapital alone (no direct peer plotted) - Competitors named: Alto, Kingdom Trust, BitIRA, Bitcoin IRA (all tax-advantaged but higher fee) - Large crypto exchanges (Binance, Coinbase): low-fee but tax-disadvantaged (no IRA wrapper) Moat claims: - Proprietary software platform (not relying on third-party IRA software) - Institutional custody partnerships - Regulatory compliance infrastructure (IRS tax reporting built-in) - Low-cost structure enables price leadership - Network effects / brand: #1 crypto IRA by self-claim ## Team & funding ask / use of funds **Team**: - Todd Southwick - CEO/Co-Founder; 3 prior tech/media startups; UCLA - Blake Skadron - President/Co-Founder; prior precious metals sales ($15M→$86M revenue growth 2014–2016) - Trever Gregory - CMO; fmr VP Marketing at Rakuten (led Ebates→Rakuten rebrand, 10M+ customers) - Jonathan Nungaray - CTO; fmr Lead Software Architect at publicly traded real estate platform - Rich Hauschild - COO; fmr SVP Technology at PIMCO (trading systems, 1M+ trades/day) - Kevin Maloney - SVP Corp Dev/IR; fmr Compliance Officer at PIMCO; serial entrepreneur - Tim Shaler - Advisor; Chief Economist, fmr SVP Portfolio Manager at PIMCO **Funding ask**: - Seeking: $100M growth equity (Series A) - Use of proceeds: Client Acquisition, Team Expansion, Technology, Strategic M&A No pre-money valuation or cap structure disclosed in deck. --- ## Recommended financial model **Archetype + why:** SaaS-hybrid + transaction take-rate model (subscription × funded accounts + volume × blended take-rate). The business has two distinct revenue engines that must be modelled separately: (1) a recurring monthly fee per funded account (SaaS-like MRR/ARR logic) and (2) a transaction revenue engine driven by trading activity volume and mix (crypto vs. gold vs. silver). A single 3-statement operating model integrates both streams with a shared account/user cohort layer. **Forecast horizon & granularity:** - Monthly for Year 1–2 (capture account growth ramp and seasonality) - Quarterly for Year 3–5 - 5-year total horizon appropriate for a Series A growth-equity raise **Key drivers & assumptions:** *Account funnel:* - Beginning funded accounts: 18,000 - Monthly new account gross adds - Monthly churn rate - Conversion: gross-to-funded account ratio *Revenue per account:* - Monthly fee per funded account: $29.95 - Average monthly trading volume per account - Crypto take-rate: 1.0% - Gold spread: $50/oz - blended revenue per oz sold; mix - Silver spread: $2.50/oz *Cost structure (not in deck - all ASSUMED):* - Custody/settlement cost - Headcount: 60 employees at Series A; model ramp to 150–200 by Year 3 post-raise - S&M spend: primary use of proceeds; model as % of gross adds × assumed CAC - Technology / cloud infra - Regulatory/compliance *Balance sheet / AUM:* - Assets on platform = accounts × average account size; average account size >$80K at Series A date - model this growing as existing accounts appreciate and new larger balances roll in - No lending, no float income - pure fee/spread model; no balance-sheet risk **Scenarios (Base / Bull / Bear - which variables flex):** - **Base:** 1,500 net new funded accounts/month post-raise; 1.8% monthly churn; $12,000 avg monthly trading volume per account; crypto bull market sustains moderate activity - **Bull:** 3,000+ net new accounts/month (aggressive marketing spend + crypto bull cycle); lower churn (1%); higher average trading volume ($20,000+/account/month); crypto market euphoria increases trade frequency - **Bear:** 800 net new accounts/month; 3% churn; crypto bear market suppresses trading volume 60–70% (retirement holders reduce activity); monthly fee revenue becomes dominant; break-even stress test on cost base **Required sheets / outputs:** 1. Assumptions tab (all toggleable inputs) 2. Account cohort model (monthly gross adds, churn, net funded accounts by cohort) 3. Revenue build (subscription MRR + transaction revenue by asset class) 4. P&L / Income Statement (revenue → gross profit → EBITDA → net income) 5. Simplified Cash Flow (operating CF; capex minimal for software company) 6. KPI dashboard: Active Accounts, MRR, ARR, AUM, Transaction Volume, Blended Take-Rate, Revenue per Account, LTV/CAC (once CAC assumed) 7. Scenario toggle (Base / Bull / Bear switchable) 8. Use of proceeds waterfall (client acquisition budget → implied accounts; team → headcount; tech → capex) ## Frequently asked questions ### Is the iTrustCapital financial model free? Yes. The iTrustCapital 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.