# Secureframe Financial Model

SaaS platform that automates security and compliance (SOC 2, ISO 27001, HIPAA, GDPR, PCI, CMMC/FedRAMP) for startups and enterprises, helping them get compliant in weeks rather than months.

- Canonical: https://finamodel.com/startups/secureframe
- Excel download: https://finamodel.com/startup-models/secureframe.xlsx
- Category: Enterprise/Security
- Model type: SaaS ARR / Valuation
- Funding round: Series B
- Funding: $56M
- Founded: 2022
- Geography: US-primary (enterprise sales focus); international compliance frameworks (ISO 27001, GDPR) suggest some international exposure
- Customer: B2B

## About the company

Secureframe automates security and compliance work across frameworks including SOC 2, ISO 27001, HIPAA, GDPR, PCI, CMMC, and FedRAMP. It helps startups and enterprises organise evidence, controls, and preparation so compliance can be achieved faster.

The company sells subscription SaaS with a land-and-expand path through additional frameworks, integrations, and larger enterprise deployments. Customers can start with a single certification need and add compliance programmes as their business and regulatory footprint grow.

The model builds ARR by new logos, framework packages, integrations, expansion, and churn. It connects implementation and audit-support costs, gross margin, sales capacity, product investment, customer success, and hiring to revenue and cash runway.

## 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

- Automated evidence collection across cloud infrastructure (AWS, GCP), HR tools, dev tools, and business suites
- 100+ integrations
- Supports multiple compliance frameworks simultaneously: SOC 2, ISO 27001, HIPAA, PCI, GDPR, CMMC/FedRAMP
- Replaces manual, consultant-led compliance processes; positions as the only platform purpose-built to automate security and compliance
- Value prop: weeks to compliant vs. months; reduces hundreds of engineering/ops hours lost to audit prep

## Market

- TAM: $36B+
- Market breakdown (stacked bar, "Today" vs "2022" projection):
  - "Today" bar: ~$8–9B total (SOC2, ISO 27001, HIPAA segments dominant)
  - "2022" bar: ~$38–40B total - growth driven primarily by Cyber Insurance and CMMC/FedRAMP segments
  - Segments: Cyber Insurance, Cloud Security, GDPR, CMMC/FedRAMP, PCI, HIPAA, ISO 27001, SOC 2
- Growth drivers cited: increase in data breaches (SolarWinds, Colonial Pipeline, Equifax), increase in regulation (EU GDPR May 2018, CCPA Jan 2019), shift to cloud, AI-driven data generation

## Revenue model

- SaaS subscription (implied by platform model); no explicit pricing tiers, contract values, or seat/usage pricing shown in deck
- Go-to-market: enterprise-focused; customer testimonial references US enterprises, healthcare, government as target markets
- Channels: direct sales (implied by enterprise focus); no channel/reseller detail in deck

## Traction & metrics

- $78M in total funding raised
- 80+ employees
- 100+ integrations
- Founded 2020
- Named customers: Lob, Dooly, AngelList, Indent, Stream, Mindstrong, TopFunnel, Akeoda

## Competition / moat

- Moat claims: only platform supporting multiple cloud accounts across integrations simultaneously; 100+ integrations create switching costs
- Competitors: Not named in deck
- Differentiation: breadth of framework coverage + multi-account/multi-cloud support; speed (weeks vs. months)

## Team & funding ask / use of funds

- Total funding to date: $78M
- Round: Series B

## Recommended financial model

- **Archetype + why:** SaaS ARR model. Secureframe is a subscription B2B SaaS with land-and-expand dynamics (multiple frameworks, integrations, enterprise upsell). ARR build-up with cohort retention is the right core structure.

- **Forecast horizon & granularity:** 3–5 years annual, with Year 1 monthly (typical Series B investor expectation). Quarterly would also be acceptable.

- **Key drivers & assumptions:**
  - New logos per month
  - Average contract value (ACV)
  - Net revenue retention (NRR)
  - Gross logo churn
  - Gross margin
  - Headcount: 80+ employees at time of deck; hiring plan not shown
  - S&M spend as % of revenue
  - R&D spend
  - G&A
  - Integration count as a leading indicator of platform stickiness

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - Bear: slower new logo acquisition, lower ACV, higher churn (macro-driven budget cuts on compliance spend)
  - Base: steady enterprise land-and-expand, NRR ~115%, ACV growth as framework coverage widens
  - Bull: CMMC/FedRAMP or Cyber Insurance segment inflection drives accelerated demand; NRR >120%, faster logo growth

- **Required sheets / outputs:**
  - Assumptions (all drivers in one place)
  - ARR Waterfall (new ARR, expansion ARR, churned ARR → net new ARR → ending ARR)
  - P&L (revenue, COGS, gross profit, S&M, R&D, G&A, EBITDA/operating loss)
  - Headcount plan (by department, linked to opex)
  - Cash & runway (starting from $78M raised; burn rate → runway months)
  - KPI dashboard (ARR, NRR, logo count, ACV, CAC payback, gross margin)

## Frequently asked questions

### Is the Secureframe financial model free?

Yes. The Secureframe 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.