PQShield Financial Model
Crypto/Web3 Startup Financials (Free Excel Download)
Post-quantum cryptography (PQC) hardware and software company building security products on NIST-standardised algorithms
professionals from Deloitte
Used by professionals from
About this model
PQShield develops post-quantum cryptography hardware IP and software libraries based on NIST-standardised algorithms. It addresses the risk that future quantum computing could undermine conventional encryption, selling technology to chipmakers, OEMs, and enterprise software or security vendors.
The UK company was early and pre-revenue when its materials were prepared, with standards still approaching finalisation. Its commercial shape is closer to an IP licensor than a generic cybersecurity SaaS company: hardware customers may pay upfront licence fees and per-unit royalties, while software can carry annual licences.
Build a contract and pipeline waterfall by customer type. Forecast design wins, licence fees, deployed units and royalty rates for hardware, plus software contracts, implementation, and renewals. R&D, standards participation, field engineering, and channel costs should remain explicit. Win rate, time to production, royalty-bearing volume, pricing, and renewal rates drive scenarios.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
About PQShield
pqshield.com
How to build a detailed financial model for PQShield
A complete walkthrough of the business, drivers, and assumptions behind the downloadable PQShield model - distilled from its pitch deck and publicly available information.
Product & value proposition
- Post-quantum cryptography solutions: unique hardware (silicon IP) and software (cryptographic libraries) implementing PQC algorithms
- Positioned on top of standards the company helped define - NIST PQC final candidates and RISC-V Scalar Cryptography extensions
- Value prop: future-proof cryptographic security against quantum computers, for any device or system using RSA/ECC today
- Target customers implied: semiconductor firms, hardware OEMs, enterprise software vendors, government/defence suppliers - anyone mandated to transition to PQC
Market
- Quantum threat framed as affecting "all cybersecurity infrastructure"
- Nation-state cyber attacks doubled in last three years; >500K people affected by video conferencing breaches Feb–May 2020
- RISC-V noted as potential rival to ARM and Intel for IoT and industrial applications
Revenue model
- Likely IP licensing fees (hardware silicon IP for chip designers)
- Likely software licensing / maintenance for PQC software libraries
- Possible professional services / integration support
Traction & metrics
- 13 hardware and software cryptography engineers (+ 2 new starters at time of deck)
- Leading multiple NIST PQC final candidates; advising on all others
- Led development of RISC-V Scalar Cryptography extensions
- World Economic Forum Tech Pioneer 2021
- Media: CNBC, BBC, TechCrunch, Forbes, The Telegraph, Business Insider
Competition / moat
- Moat: standards participation - PQShield is inside the NIST PQC standardisation process, leading and advising on final candidates, giving early visibility over all emerging technologies
- Moat: team - 13 engineers from Arm, Thales, Cloudflare, IBM, Radboud University, University of Bristol, AIST
- Advisory board includes "inventors of modern cryptography": Prof Chris Peikert, Prof Peter Schwabe, Prof Artur Ekert
- Moat: RISC-V standard leadership
- Competitive landscape not addressed in deck; no named competitors shown
Team & funding ask / use of funds
- CEO & Founder: Dr Ali El Kaafarani
- VP Strategy: Ben Packman
- VP Operations: Michael Vroobel
- VP Business Dev: Alan Grau
- Technical team: 13 engineers + 2 new starters, recruited from Arm, Thales, Cloudflare, IBM, Radboud, Bristol, AIST
Recommended financial model
- Archetype + why: B2B IP-licensing / deep-tech revenue model. PQShield sells cryptographic IP (hardware) and software libraries to chipmakers, OEMs, and enterprise vendors. The closest analogue is an IP licensor (Arm-style): upfront licence fees + per-unit royalties for hardware IP; annual software licence fees for software. A simple 3-statement model built on a contract/pipeline waterfall is appropriate at this stage given no disclosed revenues.
- Forecast horizon & granularity: 5 years (Year 1–5), annual columns; Year 1 optionally quarterly once a revenue start date is known.
- Key drivers & assumptions:
| Driver | Value |
|---|---|
| Revenue start year | Year 1 or Year 2 |
| Number of hardware IP licence deals (Year 1) | 1–3 |
| Average hardware licence fee | $500K–$2M per deal |
| Per-unit royalty (hardware) | $0.05–$0.20 per chip |
| Royalty ramp (chip volume) | 0 in Y1, growing 2–3 years after licence |
| Software licence ACV | $100K–$500K per customer |
| Software customer count Year 1 | 2–5 |
| Software customer growth rate | 50–100% YoY early years |
| Gross margin (software) | 80–90% |
| Gross margin (hardware IP) | 90%+ |
| Headcount at model start | ~15 (13 + 2 new starters) |
| Avg fully-loaded cost per engineer | £100K–£150K |
| Annual headcount growth | 50–80% in early years |
| R&D as % of opex | 60–70% |
| G&A and sales as % of opex | 30–40% |
- Scenarios (Base / Bull / Bear):
- Base: 2 hardware IP deals in Year 2, royalties kicking in Year 4; 3 software customers in Year 1 growing to 20 by Year 5
- Bull: NIST standards finalise quickly, defence mandates drive rapid procurement; 5 hardware deals in Year 2, accelerated royalty ramp; 40+ software customers by Year 5
- Bear: Standards delayed, slow enterprise adoption; 1 hardware deal in Year 3; minimal software revenue; burn runway risk
- Required sheets / outputs:
- Assumptions (all drivers in one input tab)
- Revenue build (hardware IP licences + royalty model; software ARR waterfall)
- Headcount plan (by function: R&D, commercial, G&A)
- P&L / Income Statement (GAAP, monthly or annual)
- Cash & runway (burn rate, months of runway; key given unknown funding raised)
- Balance Sheet (simplified - primarily cash, deferred revenue, IP assets)
- Scenario toggle (Base / Bull / Bear)
Frequently asked
Is the PQShield financial model free?+
Yes. The PQShield model is a free Excel (.xlsx) download with live formulas. Sign up with your email and the workbook is yours to keep, review, and edit.
What's included in the model?+
A 5-year monthly forecast with P&L, cash flow and runway, valuation (exit multiple plus a DCF cross-check), MOIC/IRR returns, and unit economics, with live formulas throughout.
How was this model built?+
It was built from PQShield's pitch deck and publicly available information, then structured to investment-banking standards as a fully editable Excel model.
Can I change the assumptions?+
Yes. You can change assumptions and the live formulas will recalculate in the downloadable Excel model.
Have more financial modelling questions? Contact us
Created by ex-finance professionals
Hey, I’m Alex and I created Finamodel.
Over my years in the finance industry I kept building the same models over and over again. Same structure, same assumptions, different logo. So I started building frameworks to turn them into clean, reusable templates.
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