Securitize Financial Model

Three integrated layers:

1. Capital formation - fully digital securities issuance platform (first to market; revenue generating since Q1'18).
2. Issuance & asset servicing - SEC-registered digital/decentralized transfer agent; compliance protocol embedded in the token (automates regulatory restrictions, ownership records).
3. Secondary trading - BD/ATS (Alternative Trading System) via Velocity Markets acquisition, enabling live trading of security tokens.

Key differentiator: blockchain eliminates manual clearing/settlement; compliance is programmatic; instant settlement without counterparty risk.

• Private capital raised (2018): $1.8T.
• Private primary capital raised: $2.9T vs. annualized trading volume of only $0.1T (330x less liquid than public markets).
• Public primary capital raised: $1.4T; public annualized trading volume: $33.0T.
• Annual clearing and settlement cost globally: $54B.
• Bank sales and trading costs globally: $163B.
• Alternative assets industry: ~$7-8T in 2017 growing to Preqin projection of $14T by 2023.
• Number of US publicly traded companies fell 50% from 1996–2016 (migration of value creation to private markets).
• No explicit SAM/SOM breakdown in deck.

Not detailed in deck. Inferred from product description:

• SaaS / platform fees: issuance platform fees charged to companies raising capital.
• Transfer agent fees: ongoing asset servicing / cap table management fees per issuer.
• ATS transaction fees: take-rate on secondary trading volume through Velocity Markets / Securitize Markets ATS.
• Japan market: fees from BUIDL-originated deals.

No pricing tiers, fee rates, or revenue figures disclosed in deck.

• Revenue generating since Q1 2018.
• 150 customers milestone reached (issuers on platform).
• First rated security token issued in Japan.
• Live trading of security tokens on integrated ATS.
• No revenue figures, GMV/AUM, ATS volume, or growth rates disclosed.

Moat claims:

• First mover: first dedicated fully digital securities issuance platform; first SEC-registered digital/decentralized transfer agent.
• Vertical integration: only company to integrate compliance protocol with regulated ATS with live trading.
• Regulatory defensibility: SEC transfer agent registration, ATS license via Velocity Markets acquisition.
• Japan foothold via BUIDL acquisition (rated security token).
• Institutional investor backing from Morgan Stanley, MUFG, Nomura, SBI Holdings, SuMi Trust - strategic distribution/credibility moat.

No explicit competitor names listed in deck.

Key team:

• Carlos Domingo, CEO - PhD Computer Science; ex-CEO Telefonica R&D.
• Jamie Finn, President - ex-AT&T, Ericsson.
• Scott Harrigan, CEO Securitize Markets - ex-Computershare (14 yrs), ex-head of Public Markets at Carta, ex-Merrill Lynch.
• Tom Eidt, General Counsel - 10+ years at US SEC.
• Jorge Serna, CPTO - ex-Telefonica R&D.

Board:

• Brad Stephens - Co-founder & Managing Partner, Blockchain Capital.
• Pedro Teixeira - Co-Head MSIM Tactical Value, Morgan Stanley.
• Tal Elyashiv - Co-founder & Managing Partner, SPICE VC; ex-CIO Bank of America and Capital One.

Funding:

• Post-Series B.
• Capital raised: over $60M.
• Investors: Blockchain Capital, Coinbase Ventures, Ripple, Borderless Capital, SPiCE VC, Fenbushi Capital, Kenetic (VC/blockchain); Morgan Stanley, Mouro Capital, MUFG, Nomura, SuMi Trust, SBI Holdings, Sony Financial Ventures (financial services).
• No funding ask amount, valuation, or use of funds stated in deck. This appears to be a Series C fundraising deck (post-Series B position described) but ask is not disclosed.

• Archetype + why: B2B SaaS + transaction revenue model. Securitize has two distinct revenue layers - recurring platform/transfer-agent fees per issuer (SaaS-like ARR) and variable ATS trading fee revenue (transaction/take-rate). A blended SaaS + marketplace GMV model best captures both. The ATS leg is analogous to a fintech marketplace (volume × take-rate); the issuance/servicing leg is subscription-like.

• Forecast horizon & granularity: 5 years (2021–2025), monthly for years 1–2, quarterly for years 3–5. 2021 is the base year given the Jan 2021 deck date.

• Key drivers & assumptions:
• Issuers on platform (customers): 150 at model start; growth rate.
• Average platform/issuance fee per issuer per year.
• Transfer agent AUM per issuer.
• ATS secondary trading volume - starts near zero given early-stage market; grows with issuer base.
• ATS take-rate.
• Japan revenue contribution - small initially post-BUIDL acquisition.
• Headcount / OpEx - not in deck;.
• Gross margin - software/platform business;.
• Revenue CAGR.

• Scenarios (Base / Bull / Bear - which variables flex):
• Bull: issuer adds accelerate (120+ new issuers/yr by 2023), ATS volume ramps faster as tokenized securities gain regulatory acceptance, Japanese market scales, take 2–3 major financial institution distribution deals.
• Base: issuer growth steady ~60 adds/yr; ATS volume modest (market still nascent); primary revenue from platform + TA fees.
• Bear: regulatory headwinds slow ATS adoption, issuer churn rises, Japan market remains small; growth decelerates to ~30%/yr by 2023.

• Required sheets / outputs:

1. Assumptions - all drivers with toggleable scenario (Base/Bull/Bear via CHOOSE).
2. Issuer Model - customer count bridge (new adds, churn), ARR from platform/TA fees.
3. ATS Revenue Model - trading volume (function of issuer AUM × secondary market penetration rate) × take-rate.
4. P&L (Income Statement) - revenue by segment, COGS (ops/compliance), gross profit, S&M, R&D, G&A, EBITDA.
5. Headcount Plan - by department, tied to OpEx.
6. Cash Flow & Runway - burn rate, months of runway, funding need.
7. KPI Dashboard - issuer count, ARR, ATS volume, gross margin %, burn multiple.