# Securitize Financial Model End-to-end blockchain-based platform for issuing, servicing, and trading digital private securities (security tokens). - Canonical: https://finamodel.com/startups/securitize - Excel download: https://finamodel.com/startup-models/securitize.xlsx - Category: Crypto/Web3 - Model type: SaaS ARR / Valuation - Funding round: Series B - Funding: $48M - Founded: 2021 - Geography: USA (SEC-registered transfer agent, ATS), Japan (BUIDL acquisition, rated security token) [DECK slide 5]; investors from US, Japan, Asia. - Customer: B2B2C ## About the company Securitize provides regulated infrastructure for issuing, servicing, and trading digital private securities. Its vertically integrated platform spans capital formation, transfer-agency work, and an alternative trading system, giving issuers a route from tokenised issuance through ongoing administration and potential secondary liquidity. The company was post-Series B in early 2021, with regulated operations in the US and Japan. Its model is not a simple software subscription: issuer onboarding can generate fees, assets under administration support servicing revenue, and secondary trading can create transaction income, all alongside substantial compliance obligations. Forecast issuers, assets tokenised, issuance fees, servicing AUA, secondary volume, and trading yield as separate lines. Include transfer-agent operations, legal and regulatory work, technology, custody or settlement, and enterprise sales costs. Issuer wins, average issuance size, AUA retention, secondary liquidity, fee yield, and compliance expense should determine scenarios. ## 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 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. ## Market - 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. ## Revenue model 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. ## Traction & metrics - 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. ## Competition / moat 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. ## Team & funding ask / use of funds **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. --- ## Recommended financial model - **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. ## Frequently asked questions ### Is the Securitize financial model free? Yes. The Securitize 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.