# mcSquares Financial Model

m·c squares makes reusable, dry-erase writing surfaces that replace paper sticky notes and notepads, sold DTC and B2B.

- Canonical: https://finamodel.com/startups/mcsquares
- Excel download: https://finamodel.com/startup-models/mcsquares.xlsx
- Category: Hardware/Deep-tech
- Model type: Unit-economics / DTC
- Funding round: Seed
- Funding: $500k
- Founded: 2020
- Geography: USA (manufactured Denver, CO; online DTC implied; B2B clients include Google, Microsoft, LEGO, Allstate, TED, United Healthcare, U.S. Air Force, Stanford University). [DECK slide 7]
- Customer: B2C

## About the company

m·c squares sells reusable dry-erase writing surfaces intended to replace paper sticky notes and notepads. The company serves both direct consumers and businesses seeking a more sustainable physical collaboration product, with the appeal rooted in repeat use rather than disposable office supplies.

This is a physical-product model with channel differences. Direct sales can support higher gross margins and customer data, while wholesale or business distribution may drive volume at lower realised pricing. Manufacturing, packaging, inventory, freight, and marketing determine whether the sustainability proposition translates into attractive contribution economics.

Model units by DTC, wholesale, and business channels, ASP, repeat purchases, and customer mix. Deduct manufacturing, packaging, freight, retailer margin, inventory, marketing, and fulfilment costs. Channel mix, price, gross margin, repeat rate, wholesale adoption, inventory turns, and CAC should drive scenarios.

## 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

- Reusable dry-erase panels / squares that stick to surfaces without adhesive residue - serve as a replacement for paper sticky notes, to-do lists, notepads, and shopping lists.
- Positioned at the intersection of office supplies and home decor.
- Product shown on kitchen cabinets, desks, bags (slide 6 lifestyle imagery shows Timbuk2 bag with m·c squares panels).
- Sustainability angle: 1.7 billion paper sticky notes saved to date; target 2 billion by July 2021.
- 1 tree planted per order; 40,000+ trees planted.
- 100% wind-powered manufacturing facility.
- Enterprise clients list confirms B2B channel exists alongside DTC.

## Market

- Office supplies market: $250 billion current → +2.7% growth → $273.9 billion projected.
- Home decor market: $737 billion current → +6.6% growth → $1.03 trillion projected.
- m·c squares positions itself at the intersection of both markets (Venn diagram).
- SAM and SOM not quantified in deck.

## Revenue model

- Physical product sales - reusable writing panels.
- Average product price: $36.00 per product.
- Average order value (AOV): $67.68 (implies ~1.9 units per order on average).
- Channels: DTC e-commerce (primary inferred); B2B/corporate sales (Google, Microsoft, Allstate, etc. shown as customers).
- No subscription revenue model mentioned in deck.
- No wholesale/retail channel data shown.

## Traction & metrics

Revenue history (slide 3):
- 2018: Revenue $180k, Gross Profit $71k, Gross Margin 39%.
- 2019: Revenue $610k, Gross Profit $481k, Gross Margin 79%.
- 2020: Revenue $2.5m, Gross Profit $2.1m, Gross Margin 84%.
- Gross profit growth 2018→2020: 3,000%.
- Revenue growth 2018→2020: 1,300%.

Impact / proxy for volume:
- 40,000+ trees planted = 40,000+ orders fulfilled (1 tree per order).
- 1.7 billion paper sticky notes saved (cumulative, current).

Unit economics (slide 2):
- AOV: $67.68.
- Average product price: $36.00.
- Gross profit per order: $59.05.
- CAC: $24.28.
- Contribution margin per order: $34.78.
- LTV estimate: $82.67.

## Unit economics

- CAC: $24.28.
- LTV estimate: $82.67.
- LTV:CAC ratio: ~3.4x (calculated from deck figures).
- Gross profit per order: $59.05 on $67.68 AOV = ~87% GP/order (close to reported 84% blended gross margin in 2020).
- Contribution margin per order: $34.78 (after variable marketing costs subtracted from gross profit).
- Contribution margin %: ~51% of AOV.
- Payback period: $24.28 CAC / $34.78 contribution margin per order = ~0.7 orders to payback CAC; implied <1 order payback.

## Competition / moat

- No explicit competitive slide in deck.
- Moat signals shown:
  - 14 patents filed, 7 issued.
  - 5 trademarks, 3 issued.
  - Material exclusivity and trade secrets cited.
  - Blue-chip enterprise customer base (Google, Microsoft, LEGO, Allstate, TED, United Healthcare, U.S. Air Force, Stanford).
- Implicit competitive framing: office supplies ($250B) + home decor ($737B) overlap positions product away from commodity sticky-note suppliers.

## Team & funding ask / use of funds

Team (slide 8):
- Anthony Franco - CEO
- Amanda Rubino - CMO
- Ian McConville - COO
- Amber Johnson - Production Manager
- Alison Burnell - Art Director
- Ella Kinloch - Director of Revenue Generation
- Del McKinney - Technical Lead
- Crystal Jackson - Fulfillment Manager
- Noah Garwood - Graphic Designer
- Kit Farnell - Customer Service Manager
- Bryan Anderson, Karen Else, Jakob Prichard - Production

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## Recommended financial model

- **Archetype + why:** DTC physical goods P&L with B2B channel layer. Revenue is transactional (no subscription), driven by order volume × AOV. The high gross margin (84% in 2020) and strong unit economics make a contribution-margin waterfall the core output. B2B channel warrants a separate revenue line given enterprise client list but unknown sizing. Recommend a **DTC e-commerce 3-statement model with unit economics build-up**, not SaaS ARR.

- **Forecast horizon & granularity:** 3 years monthly (Year 1 monthly, Years 2–3 quarterly or annual). Historical anchor: 2018–2020 actuals.

- **Key drivers & assumptions:**

| Driver | Value |
| -- | -- |
| 2020 Revenue | $2.5m |
| 2020 Gross Margin | 84% |
| 2019 Gross Margin | 79% |
| 2018 Gross Margin | 39% |
| AOV | $67.68 |
| Average product price | $36.00 |
| Units per order | ~1.9 |
| CAC | $24.28 |
| LTV estimate | $82.67 |
| Contribution margin / order | $34.78 |
| Gross profit / order | $59.05 |
| Orders to date (proxy) | 40,000+ |
| Revenue CAGR 2018–2020 | ~273% (3-year implied) |
| Forward revenue growth rate | ~60–80% YoY |
| Gross margin steady-state | 83–86% |
| Variable marketing as % of revenue | ~36% |
| Repeat purchase rate | ~2–3x purchases per customer lifetime |
| B2B revenue share | 10–20% |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - **Base:** Revenue growth ~60% YoY; gross margin 84%; CAC flat at $24.28; contribution margin holds at $34.78/order.
  - **Bull:** Revenue growth ~80–100% YoY (B2B enterprise ramp accelerates); gross margin 86% (manufacturing scale); CAC falls 10–15% (brand awareness / referral flywheel).
  - **Bear:** Revenue growth ~30–40% YoY (DTC channel saturation, rising paid-acquisition costs); gross margin 80–82% (materials/supply chain pressure); CAC rises 20%.

- **Required sheets / outputs:**
  1. Assumptions dashboard (all drivers in one place).
  2. Revenue build: DTC orders × AOV; B2B channel (separate line, manual or % of total).
  3. Unit economics schedule: CAC, GP/order, contribution margin, LTV, payback per cohort.
  4. P&L: Revenue → Gross Profit → Contribution Profit → EBITDA → Net Income.
  5. Headcount & OpEx schedule (13 employees as anchor).
  6. Cash flow / runway (no funding round data; model to show burn or cash generation).
  7. Scenario toggle (Base / Bull / Bear).
  8. KPI summary (AOV, CAC, LTV, CM%, GP%).

## Frequently asked questions

### Is the mcSquares financial model free?

Yes. The mcSquares 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.