# Proof Technology Financial Model

Tech-enabled marketplace connecting law firms to background-checked process servers, replacing a fax/phone-based fragmented industry with a mobile-first platform.

- Canonical: https://finamodel.com/startups/proof-technology
- Excel download: https://finamodel.com/startup-models/proof-technology.xlsx
- Category: Marketplace
- Model type: SaaS ARR / Valuation
- Funding round: Series A
- Funding: $7M
- Founded: 2022
- Geography: United States
- Customer: B2B

## About the company

Proof Technology connects law firms with background-checked process servers through a mobile-first marketplace. Firms can track service attempts and receive digital affidavits with GPS, photo, and timestamp evidence, while servers are rewarded for successful completion rather than time spent.

The company earns a transaction fee on each serve, with gross ticket values around $72–$88 and a reported gross-margin profile near 40%. Premium services such as skip tracing, full service, and video verification add additional value on top of the core assignment.

The model uses serve volume, average ticket, service mix, and platform take rate to build revenue. Server payouts, payment costs, verification technology, and support form the cost of revenue. Law-firm acquisition, repeat matters, geographic coverage, completion rate, and premium-service attach determine contribution margin and growth.

## 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

- Mobile app for process servers (job management, GPS capture, photo/timestamp affidavits)
- Web dashboard for law firms: real-time tracking, direct server communication, digital affidavits with geolocation + timestamps
- Bounty/incentive system: servers paid on successful completion, not hourly attempts
- Background-checked servers, minimum 2 years experience
- Legal requirement for personal delivery is constitutionally entrenched - technology cannot substitute physical service, making the market defensible

## Market

- TAM: Service of Process market estimated at $4.1 billion
- Volume anchors: 40 million people served in the U.S. annually; 20 million civil court cases filed in 2019 (both approximate)
- Average of 2 defendants per case requiring service
- Serve attempt prices: $70–$200 per assignment (including billable mileage)
- ~4,000 service of process companies in U.S.; ~30,000 process servers

## Revenue model

- Transaction fee per serve: company takes a cut of each serve assignment placed through the platform
- Average ticket (gross per serve): $88.45 (2019) → $72.15 (2020) → $78.15 (2021) → $82.44 projected 2022–2024
- Premium upsell services bundled on top of basic serve: Skip Traces, Full Service, Video Verification - pricing not disclosed
- Gross margin implied: ~40.7% in 2019, ~39.5% in 2020, ~38.0% in 2021, ~45.0% projected 2022P
- No subscription / SaaS fee structure explicitly stated; model is transactional ("SaaSification" referenced as a direction, slide 9)
- Channels: direct outreach to law firms; process servers recruited as contractors

## Traction & metrics

All figures from slide 12 (quarterly) and slide 13 (annual):

**Quarterly revenue (actuals unless noted):**
| Quarter | Revenue | QoQ Growth |
| -- | -- | -- |
| Q4 2019 | $212.7k | - |
| Q1 2020 | $434.9k | +104% |
| Q2 2020 | $337.1k | 22.49% |
| Q3 2020 | $404k | +19.85% |
| Q4 2020 | $559.8k | +38.56% |
| Q1 2021 | $704k | +25.76% |
| Q2 2021 | $930k | +32.1% |
| Q3 2021 | $1.22m | +30.7% |
| Q4 2021 | $1.24m | +2.1% |
| Q1 2022 (E) | $1.48m | +19% est. |

**Annual summary (slide 13):**
|  | 2019 | 2020 | 2021 | 2022P | 2023P | 2024P |
| -- | -- | -- | -- | -- | -- | -- |
| Serves | 6,133 | 24,209 | 52,387 | 148,663 | 386,620 | 653,707 |
| Avg Ticket | $88.45 | $72.15 | $78.15 | $82.44 | $82.44 | $82.44 |
| Total Gross Revenue | $542,489 | $1,746,689 | $4,094,073 | $12,255,851 | $31,872,987 | $53,891,566 |
| Gross Profit | $220,631 | $690,517 | $1,554,356 | $5,515,133 | $14,837,016 | $25,259,413 |
| Cash Flow | ($426,553) | ($511,701) | ($1,003,634) | ($2,026,138) | $4,205,189 | $14,041,306 |

- Revenue CAGR 2019–2021 (2 years, actuals): ~175% [calculated]
- Implied gross margin 2021 actual: ~38% [calculated]
- Path to cash flow positive: 2023P per deck projections

## Unit economics

- Gross margin (implied from table): ~38–40% on actuals; ~45% projected from 2022P
- Server economics: contractors earn more as Proof contractors vs. employed workers - specific rates not disclosed

## Competition / moat

- Market is highly fragmented: ~4,000 companies, none dominant
- Moat levers cited: network effects (server density per geography), technology (real-time tracking, digital affidavits), incentive alignment (bounty on success not attempt), background checks
- No named direct competitors shown
- Court system requirement for personal service creates structural demand floor

## Team & funding ask / use of funds

**Team (slide 11):**
- Eric Voogt - CEO
- Mark Kreloff - SVP, Finance & Corporate Development
- Liam Kirby - COO
- Steve Bachtel - Chief Revenue Officer
- Marty Wachocki - CTO
- Julie McGinnis - Executive VP, Territory Management
- Stefan Ramsbott - Chief Product Officer

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## Recommended financial model

**Archetype + why:**
Marketplace volume-driver P&L model (transactional, per-serve GMV × take rate). The business is a two-sided marketplace where revenue = Serves × Average Ticket (gross) and gross profit is the platform's take after paying servers. This is not SaaS ARR - the "SaaSification" reference on slide 9 suggests ambition to add subscription layers, but current model is entirely transactional. A marketplace GMV / contribution margin model is the right framework.

**Forecast horizon & granularity:**
- History: 2019–2021 actuals (annual + quarterly detail available)
- Forecast: 2022–2024 (3-year, annual; quarterly optional for 2022 given existing quarterly actuals)
- Granularity: monthly for Year 1 (2022), quarterly for Years 2–3

**Key drivers & assumptions:**

| Driver | Value |
| -- | -- |
| Serves 2019 | 6,133 |
| Serves 2020 | 24,209 |
| Serves 2021 | 52,387 |
| Serves 2022P | 148,663 |
| Serves 2023P | 386,620 |
| Serves 2024P | 653,707 |
| YoY serves growth 2022P | +184% |
| YoY serves growth 2023P | +160% |
| YoY serves growth 2024P | +69% |
| Average ticket (gross) 2019 | $88.45 |
| Average ticket (gross) 2020 | $72.15 |
| Average ticket (gross) 2021 | $78.15 |
| Average ticket (gross) 2022–2024P | $82.44 |
| Gross margin 2019–2021 | ~38–41% |
| Gross margin 2022–2024P | ~45–47% |
| Platform take rate (implicit) | ~38–47% of gross ticket |
| Server payout per serve | ~$47–$54 (residual) |
| Implied opex 2021 | ~$2.56m |
| Implied opex 2022P | ~$7.54m |
| Cash flow positive year | 2023P |

**Scenarios (Base / Bull / Bear - which variables flex):**
- **Base:** Deck projections as stated - serves growth per DECK table, avg ticket flat at $82.44, gross margin ~45%
- **Bull:** Premium service attach rate increases avg ticket to $95–$110; gross margin improves to 50%+ as server density reduces per-serve cost; serves growth sustained at 150%+ through 2024
- **Bear:** Serves growth decelerates to 50% YoY (2022) due to slow geographic expansion or server supply constraints; avg ticket compresses back toward $72–$75; opex grows faster than GP → cash flow positive pushed to 2025

**Required sheets / outputs:**
1. **Volume Model** - Serves by geography/quarter, avg ticket, total GMV
2. **P&L** - Gross revenue, server payouts (COGS), gross profit, gross margin %; S&M, G&A, Tech/R&D opex; EBITDA; cash flow
3. **Premium Services Module** - Skip Trace / Full Service / Video Verification: attach rate × ASP uplift
4. **Cash Flow / Runway** - Operating cash burn 2022–2023; implied fundraise sizing
5. **Sensitivity Table** - Serves volume × avg ticket × gross margin
6. **Scenario Toggle** - Base / Bull / Bear on key volume and margin drivers
7. **Dashboard** - Revenue, serves, gross margin %, quarterly actuals vs. projected

## Frequently asked questions

### Is the Proof Technology financial model free?

Yes. The Proof Technology 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.