# Labster Financial Model

Web-based virtual science lab platform that replaces or supplements physical labs for higher ed and high school students.

- Canonical: https://finamodel.com/startups/labster
- Excel download: https://finamodel.com/startup-models/labster.xlsx
- Category: EdTech
- Model type: SaaS ARR / Valuation
- Funding round: Series C
- Funding: $47M
- Founded: 2022
- Geography: Global (partnerships cited across higher education and high school internationally; Google + ASU partnership implies US focus but not exclusive).
- Customer: B2C

## About the company

Labster provides web-based virtual science laboratories for higher education and high-school students. Simulated experiments can replace or supplement physical labs when access, cost, safety, or scale limits conventional laboratory instruction.

The company sells recurring institutional licences to schools and universities, making course adoption and student coverage the key commercial units. Its investor base includes A16z, Balderton, and Owl Ventures, while partnerships cited across higher education and high school support a global institutional model.

The model builds ARR from institutions, courses, students covered, licence value, renewal, and expansion. Simulation development, implementation, sales cycles, cloud delivery, customer support, and adoption outcomes determine gross margin and the cash required to grow the education platform.

## 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

- 250+ fully interactive virtual science labs delivered via web browser.
- Students access simulations anytime, anywhere - designed to precede or replace wet labs.
- Teacher-facing dashboard tracks progress, attempts, quiz answers, and automates grading.
- Key value props: improves accessibility (no physical equipment needed), saves instructor time (students pre-practice at home), boosts learning outcomes (+101% vs traditional teaching alone, Nature Biotechnology 2014 controlled study, n=160).
- Partnership with Google + Arizona State University to deliver world's first accredited fully online college Biology degree.

## Revenue model

- Channel: B2B - sold to institutions (higher education + high schools), not direct to students.
- Pricing model: Not explicitly stated in deck. Institutional SaaS licensing inferred from "3000 institutional partners" language and product structure (seat- or institution-level access).
- Unit referenced: $10,000 USD cost for students in the online ASU Biology degree vs. $40,000 for average science degree - this is a student-facing cost comparison, not Labster's own pricing, but implies Labster enables a low-cost delivery model.
- No per-seat, per-lab, or ARR pricing disclosed in deck.

## Traction & metrics

- 250+ fully interactive virtual labs
- 5 million students reached
- 3,000 institutional partners
- 3,000+ institutions in higher education and high school
- 2,000 students enrolled in ASU online Biology degree program (Labster + Google + ASU)
- Learning outcome: students learn up to 101% more when Labster combined with traditional teaching (Nature Biotechnology 2014, n=160)
- No revenue, ARR, or growth rate figures disclosed.

## Competition / moat

- Content depth: 250+ validated, research-backed simulations (not easy to replicate at scale).
- Outcome data: peer-reviewed efficacy evidence (Nature Biotechnology 2014) differentiates from unproven alternatives.
- Institutional partnerships: 3,000+ partners create switching costs and network credibility.
- Board: A16z (Scott Kupor), Balderton Capital (Lars Fjeldsoe Nielsen), Owl Ventures (Tory Patterson) - strong EdTech-specialist investor signal.
- Strategic partner: Google + ASU accredited degree program - first-mover advantage in accredited online science programs.

## Team & funding ask / use of funds

**Leadership team:**
- Michael Bodekaer - CEO & Founder (founded 3 tech companies; MSc Math, Finance & Strategy; McKinsey & Company)
- Mads Bonde - Executive Chairman & Founder (PhD Biotechnology; Honorary Professor, Harvard Medical School)
- Remo Meyer - CTO
- Kristian Pedersen - CFO
- Lenny Izzo - CRO
- Hope Frank - CMO
- Roxana Dobrescu - CPO

**Board:**
- Scott Kupor - Partner, A16z (Cedar, FourSquare, SnapLogic)
- Lars Fjeldsoe Nielsen - Partner, Balderton Capital (ex-WhatsApp, Uber, Dropbox)
- Tory Patterson - Founding Partner, Owl Ventures (Noodle Partners, BetterLesson, DreamBox Learning)

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## Recommended financial model

- **Archetype + why:** B2B SaaS ARR model. Labster sells institutional licenses (subscription) to schools and universities. Revenue is recurring and institution-level, making ARR / seat-based SaaS the natural structure. A 3-statement model is not warranted without cost or balance sheet data - focus on a revenue-build + unit economics driver tree.

- **Forecast horizon & granularity:** 5 years (Year 1–5), annual columns. Monthly granularity for Year 1 if close data is available, otherwise annual throughout.

- **Key drivers & assumptions:**

| Driver | Value |
| -- | -- |
| Institutional partners (starting) | 3,000 |
| Students reached (cumulative) | 5,000,000 |
| Virtual labs in catalog | 250+ |
| New institutions added per year | 600–900 (20–30% growth) |
| Average contract value (ACV) per institution | $5,000–$15,000 |
| Net revenue retention (NRR) | 105–115% |
| Gross margin | 70–80% |
| Sales & marketing as % of revenue | 30–40% |
| R&D as % of revenue | 15–20% |
| Churn rate (gross logo) | 5–10% annually |
| ASU/Google degree program students | 2,000 enrolled (base) |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - **Bear:** New institution growth 10–15% YoY; ACV at low end ($5K); NRR = 100% (flat expansion); GM = 70%.
  - **Base:** New institution growth 20–25% YoY; ACV mid ($9K); NRR = 108%; GM = 75%.
  - **Bull:** New institution growth 30%+ YoY; ACV high ($15K) driven by enterprise/HE deals; NRR = 115%; GM = 80%; strategic partnerships (Google/ASU-type) accelerate pipeline.

- **Required sheets / outputs:**
  1. **Assumptions** - all drivers above, editable inputs.
  2. **Revenue Build** - institution cohort model (new + retained + churned by year); ARR bridge (opening ARR → new → expansion → churn → closing ARR).
  3. **P&L (simplified)** - Revenue, COGS, Gross Profit, S&M, R&D, G&A, EBITDA. No balance sheet or cash flow unless funding ask is added.
  4. **Unit Economics** - CAC (estimated), LTV, LTV/CAC ratio, payback period (all given no deck data).
  5. **KPI Dashboard** - institutions, students, ARR, NRR, gross margin %, burn/runway (if funding data added).
  6. **Scenarios** - sensitivity table on ACV × institution growth rate → ARR Year 3 / Year 5.

## Frequently asked questions

### Is the Labster financial model free?

Yes. The Labster 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.