# Nokod Security Financial Model Cybersecurity platform that detects and prevents threats (malicious, vulnerable, and non-compliant apps) in low-code / no-code (LCNC) enterprise applications. - Canonical: https://finamodel.com/startups/nokod-security - Excel download: https://finamodel.com/startup-models/nokod-security.xlsx - Category: Dev Tools - Model type: SaaS ARR / Valuation - Funding round: Seed - Funding: $8M - Founded: 2023 - Geography: North America and EMEA (primary), global enterprise [DECK, slide 16]. - Customer: B2B ## About the company Nokod Security scans low-code and no-code applications across Microsoft Power Apps, Salesforce, ServiceNow, and OutSystems. Its LCNC Analyzer identifies vulnerable, malicious, and non-compliant apps, sending alerts through an AppSec portal to security and SOC teams that otherwise lack coverage of citizen-developed software. The company plans a subscription model correlated with protected application count. CISOs and AppSec directors are the buyers, while digital-transformation managers act as internal champions. Direct sales target mid-market and larger enterprises with dedicated application-security teams; the MVP initially covers one or two platforms. At the deck stage, Nokod had no stated customers or ARR and was design-partner ready. CISO and digital-manager interviews validated the problem but not signed demand. The model should forecast enterprises, protected apps, per-app price, platform coverage, integrations, sales cycle, expansion, churn, and support costs. ## 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 - Product: "Nokod LCNC Analyzer" scans low-code / no-code apps across enterprise platforms (Microsoft Power Apps, Salesforce, ServiceNow, OutSystems); outputs alerts via "Nokod Appsec Portal" to security teams / SOC. - Three detection pillars: 1. Vulnerable apps detection 2. Malicious apps detection 3. Non-compliant apps detection - Architecture: Nokod appsec engine(s) → appsec model → data lake (apps + platform logs); research layer feeds the model. - Value prop: Fills the security gap created by citizen-developer proliferation - existing appsec processes do not cover LCNC apps, and no adequate tooling exists (self-described blue ocean). ## Market - **TAM - top-down approach #1 (Appsec market)**: - AlliedMarketResearch: $5.97B (2020), 18.7% CAGR → $33.9B by 2030. - ResearchAndMarkets: $7.35B (2022), 18.5% CAGR → $33B by 2030. - Deck conclusion: average $9.35B at 2023 × 65% LCNC share (Gartner) = **$6.07B TAM at 2023**. - **TAM - top-down approach #2 (LCNC platform market)**: - Gartner (Dec 2022): $26.9B in 2023, 19.6% CAGR. - Acumen: $16B in 2021, 28.8% CAGR → $159B by 2030. - Deck conclusion: average $26.72B at 2023 × 15% security = **$4B TAM at 2023**. - **TAM - bottom-up approach**: - 350,000 large companies (250+ employees) worldwide (2021 figure). - 20% assumed to use LCNC. - Average annual deal size:. - TAM at 2023:. - Market context: Gartner projects 65% of all apps will be low-code by 2024. ## Revenue model - Business model: **Subscription, correlated with number of protected apps**. - Pricing unit: Per-app (i.e., usage-/volume-based subscription). Exact price per app not disclosed. - Channels: Direct sales initially. - Buyer: CISO, Director of Appsec. - Entry point (champion): Digital transformation manager / Digital channel manager. - Target customer: Mid-market and upward enterprises using LCNC tools with a dedicated appsec team. - Covered platforms at MVP: Microsoft Power Apps, Salesforce, ServiceNow, OutSystems. ## Traction & metrics - Customer count:. - ARR:. - Product stage at Month 1: MVP, 1–2 covered platforms, design partner-ready. - Validation: Meetings held with CISOs and Digital Managers; qualitative quotes confirm willingness to buy but no signed customers or ARR cited. - Notable quote: "The solution makes a lot of sense. As soon as a security incident caused by a low code app is public, everyone would like to buy it" (CISO, public Insurtech). ## Competition / moat - Self-described blue ocean: no direct LCNC-security specialist competitors named (competitor analysis redacted as strategic confidential). - Competitive matrix shows Nokod in the upper-right quadrant vs. unnamed competitors. - Moat arguments (implied): first-mover in dedicated LCNC appsec; deep LCNC-platform integration expertise; research layer / proprietary data lake; founding team pedigree (Imperva, Ping Identity). - Indirect competitive pressure from: general appsec tools (SAST/DAST), LCNC platform vendors adding native security, enterprise security suites. ## Team & funding ask / use of funds - **Yair Finzi** - Co-founder & CEO. 15 yrs cybersecurity; prev. founder & CEO of SecuredTouch (acq. by Ping Identity). - **Amichai Shulman** - Co-founder & CTO. 25 yrs; prev. founder & CTO of Imperva (acq. by Thoma Bravo). - **Yuval Peled** - VP Engineering. Backend/cloud; prev. Engineering Group Lead at Ping Identity. - **Funding ask**: Seed round of **$8M**. - **Use of funds**: Not explicitly stated. Timeline implies headcount growth from 4 FTEs (Month 1) → 15 FTEs (Month 13) → 25 FTEs (Month 24) and Series A preparation. --- ## Recommended financial model - **Archetype + why**: **SaaS ARR model (per-app subscription)**. Revenue is explicitly subscription-based and correlated with number of protected apps - this is a classic seat/unit ARR build. Direct enterprise sales, mid-market upward, with annual contracts expected. - **Forecast horizon & granularity**: 3 years (2023–2025, aligning with deck timeline), monthly for Years 1–2, quarterly for Year 3. Captures Seed → Series A gate. - **Key drivers & assumptions**: | Driver | Value | | -- | -- | | Addressable large enterprises | 350,000 (250+ employees) | | % using LCNC | 20% = 70,000 prospective accounts | | Initial geography focus | North America + EMEA | | Target segment | Mid-market upward (direct sales) | | Sales motion | Direct sales (outbound, CISO-led) | | Company headcount Month 1 / 13 / 24 | 4 / 15 / 25 FTEs | | Seed raise | $8M | | New logos per month (Yr 1) | 1–2 design partners → ramp to paid | | Average Contract Value (ACV) | $50K–$150K/yr | | Apps per customer | 20–100 apps | | Price per protected app per year | $500–$2,000 | | Gross margin | 75–85% | | Sales cycle | 3–6 months | | Annual churn (logo) | 5–10% | | Expansion / upsell rate | 10–20% NRR uplift | | Burn / OpEx | Model from headcount plan: 4 → 15 → 25 FTEs | | Average fully-loaded cost per FTE | $150K–$200K/yr (Israel + US blended) | | Series A raise trigger | Month ~24, ARR milestone | - **Scenarios (Base / Bull / Bear - which variables flex)**: - **Base**: 2 new logos/month by Month 6, ACV $80K, 80% gross margin, churn 7%. - **Bull**: 3–4 logos/month, ACV $120K (more apps per account), low churn 4%, faster platform expansion. - **Bear**: 1 logo/month, longer sales cycles (6–9 months), ACV $50K (smaller deals), churn 10%; tests runway to Series A. - **Required sheets / outputs**: 1. **Assumptions** - all drivers on one sheet, toggleable for scenarios. 2. **Revenue build** - new logos × ACV + expansion ARR; monthly new ARR, churn, net new ARR, ending ARR. 3. **P&L** - Revenue, COGS (hosting, support), Gross Profit, OpEx (R&D, S&M, G&A), EBITDA, Net Income. 4. **Headcount plan** - role-level FTE schedule tied to hiring plan (4 → 15 → 25). 5. **Cash / Runway** - Seed $8M less monthly burn; flag runway to Series A gate. 6. **KPI dashboard** - ARR, MRR, logo count, ACV, NRR, burn rate, runway months. ## Frequently asked questions ### Is the Nokod Security financial model free? Yes. The Nokod Security 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.