# PainWorth Financial Model

Web tool that helps personal injury claimants calculate the value of their pain-and-suffering claim using court-case data.

- Canonical: https://finamodel.com/startups/painworth
- Excel download: https://finamodel.com/startup-models/painworth.xlsx
- Category: InsurTech
- Model type: SaaS ARR / Valuation
- Funding round: Seed
- Funding: $1.7M
- Founded: 2022
- Geography: Canada (court cases shown are Canadian provincial; CTV/CBC/630CHED media coverage) [DECK, slides 1, 2].
- Customer: B2B

## About the company

PainWorth is a web tool that estimates pain-and-suffering claim values using inflation-adjusted court-case data. Users adjust injury severity and receive comparable awards, percentile ranges, and an algorithmic estimate of potential claim value.

The product grew from about 50 users to 1,000 through a bootstrapped early phase. Its legal-data tool addresses consumers and potential legal partners, though the deck does not disclose a pricing model or current revenue.

The model should use a freemium legal-tech funnel. Users, paid conversion, subscription or report price, legal-partner referrals, retention, and acquisition build revenue. Data maintenance, search conversion, and potential attorney lead economics are key assumptions.

## 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

- Slider-based UI: user adjusts injury severity sliders; platform queries a database of inflation-adjusted court cases and outputs 5th/25th/median/75th/95th percentile award values plus an "Effective Value" estimate.
- Example shown: "Back" injury, 93 matching cases; effective value = $35,189.33; median = $56,297.00.
- Surfaces top 20 comparable court cases with award amount and CPI-adjusted figure.
- Claims bias-removal benefit: algorithmic approach vs. human adjuster who awards women ~$5,000 less than men for equivalent injuries.
- Media coverage: CTV, Global News, CBC, 630CHED, LegalTechLIVE.
- Awards: 2021 InsurTech Hartford Innovation Challenge Winner (Travelers "Best Emerging InsurTech Product"); 2021 American Bar Association Startup Alley TechShow Winner.

## Market

- Total addressable: 3.1M yearly personal injury victims (geography not specified, likely Canada + US implied).
- Context provided: 80% of injury victims cannot access legal help due to cost or "poor case economics"; average litigation wait time 5 years, sometimes 23 years.

## Traction & metrics

- Users at "Birth" (2020): 50.
- Users at "Today" (~late 2021 / early 2022): 1,000.
- Projected users late 2023: 20,000.
- Growth descriptor: "bootstrapped 20x growth".
- Monthly trend chart (slide 6): shows exponential-style curve Dec 2019 → Dec 2020; two media-driven traffic spikes (CTV, Global News) visible - no Y-axis absolute values readable.
- Team size: 7 employees + 1 external counsel.

## Competition / moat

- Moat claims: proprietary database of CPI-adjusted Canadian court case awards; algorithm removes human adjuster bias; "World's #1 Personal Injury Claim Tool" positioning.
- Indirect competition: lawyers, insurance adjusters, traditional litigation process.
- Advisor network cited as providing "access to key data repositories and critical industry relationships" in insurtech, legaltech, and insurance.

## Team & funding ask / use of funds

- Mike Zouhri - Co-Founder / CEO: serial entrepreneur, community leader, active in social justice causes.
- Chris Trudel - Co-Founder / CTO: >20 years enterprise development, 3x startup experience, experienced chief architect.
- 7 employees + 1 external counsel.
- Advisors: Andrew Arruda (LegalTech), Kyla Sandwith (Legal Scaling), Braden Bosch (Insurance), Ashif Mawji (VC/Serial), Colin LaChance (LegalTech), Sean Morrow (Insurance), Ryan Bencic (Tech Lawyer).

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## Recommended financial model

- **Archetype + why:** Consumer freemium / SaaS user-growth model with optional B2B revenue track. Revenue model is absent from the deck so the model must be built around user/traffic growth as the primary driver, with placeholder revenue scenarios (e.g., subscription fee per claim report, B2B licensing per insurer seat, or referral fee per settled claim). A simple 3-statement model with a user-funnel revenue build is appropriate at this stage.

- **Forecast horizon & granularity:** Monthly for Year 1–2 (2022–2023), quarterly for Year 3–4 (2024–2025). 3-year base case minimum; 5-year for exit/valuation purposes.

- **Key drivers & assumptions:**

| Driver | Value |
| -- | -- |
| Personal injury victims / year (addressable) | 3.1M |
| Users at start of model (2022) | ~1,000 |
| Target users end 2023 | 20,000 |
| Implied 2022–2023 CAGR | ~20× over ~2 yrs ≈ ~347% annual |
| Organic monthly user growth rate post-2023 | 8–12% MoM |
| Conversion: free → paid (if freemium) | 3–5% |
| Average revenue per paying user (subscription) | CAD $20–$50 / report or $10–$30/mo subscription |
| B2B licensing channel (insurer / law firm seats) | Optional revenue line, Year 2+ |
| Gross margin (software, minimal COGS) | 70–80% |
| Headcount at model start | 7 employees + 1 counsel |
| Monthly burn (bootstrapped team of 8) | CAD $50K–$80K |
| CAC (paid acquisition) | CAD $15–$40 |
| Churn (annual, consumer) | 40–60% |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - **Bear:** User growth slows to 50% YoY post-2023; conversion to paid stays at 2%; no B2B channel; burn exceeds revenue to 2025.
  - **Base:** Users reach 20K by end 2023 per deck projection; 4% paid conversion; B2B pilots begin 2024; breakeven ~2024–2025.
  - **Bull:** Media/PR partnerships accelerate users to 50K+ by end 2023; 6% paid conversion; insurer licensing deal closes 2023; profitable 2024.

- **Required sheets / outputs:**
  1. Assumptions dashboard (all drivers in one place)
  2. User funnel - registered → active → paid (monthly)
  3. Revenue build - consumer subscription + B2B licensing (separate lines)
  4. P&L / Income Statement (revenue, COGS, gross profit, OpEx by function, EBITDA)
  5. Headcount plan
  6. Cash flow / runway (critical - no raise amount disclosed; burn vs. revenue gap)
  7. Sensitivity table - user growth rate × ARPU (2×2 or 3×3)
  8. Summary KPI dashboard (users, MRR/ARR, gross margin %, runway months)

## Frequently asked questions

### Is the PainWorth financial model free?

Yes. The PainWorth 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.