# Lance Financial Model Smart business banking app for self-employed / freelancers - combines a bank account with automated tax, savings, and expense allocation - Canonical: https://finamodel.com/startups/lance - Excel download: https://finamodel.com/startup-models/lance.xlsx - Category: Fintech - Model type: SaaS ARR / Valuation - Funding round: Seed - Funding: $2.8M - Founded: 2021 - Geography: United States - Customer: B2B2C ## About the company Lance is a smart business-banking app for self-employed people and freelancers. It combines an account with automated tax, savings, and expense allocation so independent workers can manage cash flow without maintaining a separate finance stack. A monthly accounting subscription is the primary disclosed revenue stream, supplemented by banking economics and partner services such as tax filing or incorporation. The product’s value grows as more of a freelancer’s activity and financial administration moves into the app. The model should forecast subscribed users, monthly ARPU, retention, bank-account activation, debit spend, and service attachment. Subscription ARR should remain distinct from interchange, deposit-spread, and referral revenue, allowing cohort-level expansion and the economics of each product to be tested clearly. ## 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 Lance is a mobile-first bank account built for the self-employed. Core differentiator is a proprietary "Financial Framework" that automatically splits incoming revenue into four buckets - Salary, Taxes, Expenses, and Savings - inside a "Stacks" system. Product modules per the deck: - Modern online banking (debit VISA, $0 fees, 24/7 support, card controls) - Automated allocations via Stacks (Salary, Tax, Savings, Expenses sub-accounts) - Expense tracking and profit/loss insights - Tax management (automated withholding, filing support) Positioned as "First to Market" for integrated business banking + accounting for freelancers. ## Market - TAM proxy: Over 60M Americans are self-employed - 73% of today's students will start working as freelancers - 97% of freelancers consider it a long-term career choice - Average freelancer salary: $60K across America - Problem quantification: self-employed lose $6,500 annually in missed deductions - No explicit TAM/SAM/SOM dollar figures provided in deck ## Revenue model Two revenue streams shown: **SaaS Revenue (primary)** - Monthly accounting subscription fee - Exact price per month not stated in deck **Add'l Revenue (ancillary)** - Banking: typical APY spread and interchange rates on debit card transactions - Services: tax filing, incorporation, and other partner/referral revenue No explicit subscription price per user disclosed in deck. ## Traction & metrics Revenue projections from area chart: - 2021: ~$1M (approximate, read from chart axis) - 2022: ~$4M (approximate, read from chart axis) - 2023: ~$10M (approximate, read from chart axis) Note: these appear to be forward projections shown in the deck, not confirmed actuals. No customers, MRR, churn, or retention figures disclosed. App UI mockup shows illustrative user "Marcus" with balance $34,682.55, +10% from last month; Stacks allocation: Salary $3,500, Savings $220, Tax $114.50, Expenses $560 - these are demo-account figures, not company metrics. ## Competition / moat Competitive advantages stated: - First to market for integrated business banking + accounting - Proprietary Financial Framework (structured allocation path across industries) - Ease of use: accounting, filing, and revenue allocation automated - Set It + Forget It: one-time setup, then fully automated No competitive landscape slide or incumbent comparison shown. ## Team & funding ask / use of funds Team: - Oona Rokyta - CEO (prev. Microsoft, Aleph) - Gilad Uziely - COO (prev. Flex) - Oren Reuveni - CTO (prev. Taboola, Riskified) - Tom Reuveni - CPO (prev. Taboola, Juno) --- ## Recommended financial model - **Archetype + why:** SaaS ARR + banking ancillary revenue model. Lance has a clearly stated monthly subscription fee (SaaS) as the primary driver, plus two secondary streams tied to user banking activity (interchange and APY spread) and partner services revenue. This is a classic fintech neobank with a SaaS overlay - model the subscription cohort-by-cohort and layer interchange/APY/services revenue as a per-user rate on top. - **Forecast horizon & granularity:** Monthly for Years 1–2; quarterly for Year 3. Matches the 2021–2023 chart horizon in the deck. - **Key drivers & assumptions:** | Driver | Value | Source | | -- | -- | -- | | TAM - US self-employed | 60M Americans | - | | Avg freelancer annual income | $60K | - | | Monthly SaaS subscription price | ~$10–$20/mo - typical neobank/fintech subscription tier; exact price not in deck | | Monthly gross user adds (Y1) | ~500–1,000 - implied by ~$1M 2021 revenue at ~$15/mo = ~5,500 paying users by year-end | | Monthly churn rate | ~3–5% - typical early-stage fintech; no deck data | | Interchange revenue per user per month | ~$1–2/mo - typical debit interchange ~1.5% on ~$500–1,500 monthly spend | | APY spread per user | ~0.5–1.0% net on avg deposit; typical neobank economics | | Partner/services revenue per user | ~$2–5/mo blended (tax filing, incorporation referrals) | | Gross margin (SaaS) | ~70–75% - software-heavy; banking/services cost drag brings blended margin lower | | CAC | ~$50–100 - digital-first freelancer acquisition; no deck data | | Target paying users by end 2023 | ~55,000–60,000 - implied by ~$10M revenue at ~$15/mo avg revenue per user | - **Scenarios (Base / Bull / Bear - which variables flex):** - **Base:** Subscription price ~$15/mo; churn ~4%; user adds ramp linearly; reaches ~$10M revenue by 2023 per deck chart - **Bull:** Subscription price $20/mo + higher ancillary ARPU from banking/services attach; churn 2–3%; viral/word-of-mouth growth among freelancer communities - **Bear:** Churn 6–8%; subscription price compression to $10/mo; slower user acquisition; ancillary revenue minimal in early years - **Required sheets / outputs:** 1. **Assumptions** - all drivers with / tags, toggle for scenarios 2. **User Cohort Model** - monthly new users, active users, churned users; cumulative paying base 3. **Revenue Build** - SaaS MRR (users × price), banking revenue (users × interchange + APY), services revenue (users × attach rate); total ARR 4. **Income Statement** - revenue by stream, COGS (banking cost of funds, support, infrastructure), gross profit, opex (S&M, R&D, G&A), EBITDA 5. **Cash Flow & Runway** - given no funding ask shown, track burn vs. revenue ramp 6. **KPI Dashboard** - MAU, paying users, MRR, ARR, ARPU, churn %, gross margin, LTV/CAC (once CAC assumed) 7. **Scenario Toggle** - Base / Bull / Bear switcher on assumptions tab ## Frequently asked questions ### Is the Lance financial model free? Yes. The Lance 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.