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Spring Labs Financial Model

Spring Labs (legal entity: Springcoin, Inc.) has built the Spring Protocol - a patent-protected cryptographic data-sharing layer that lets institutions exchange sensitive information without revealing underlying data. Key properties: trustless & deterministic, data agnostic, graph analysis enabled, flexible entity resolution.

Four products built on the protocol:

1. PACE Network - Detects loan stacking in the PACE (Property Assessed Clean Energy) lending industry. Live. Claims 100% industry coverage.
2. MainNet - Fraud and income data sharing, income stability data between financial institutions. Live.
3. Crypto Middleware - Identity verification, AML/KYC, synthetic-identity detection; bridges off-chain and on-chain ecosystems. In Development; Coming Q3 2021.
4. Spring Index - Tokenized black/white lists for threat-data sharing between competitive parties. Early Development; Coming Q4 2021.

No formal TAM/SAM/SOM slide. Two proxy figures cited in the competitive landscape:

• Give-to-Get data sharing models: >$85bn - context suggests this is market size or aggregate value of the incumbent model segment (label partially obscured in image).
• Screen scrapers & aggregators (example company): $13.4bn - appears to be the valuation of an example aggregator (Varo/Chime logos visible), not a market size figure.

No growth rate, CAGR, or addressable market breakdown provided.

Not explicitly stated in the deck. Inferred structure based on product descriptions:

• PACE Network and MainNet are "Live" - revenue likely B2B subscription or per-query/API-call fees paid by financial institution participants.
• The protocol is positioned as infrastructure; products on top presumably carry the commercial model.
• No pricing tiers, contract values, or revenue per customer disclosed.

• Total equity funding raised to-date: $38.75M.
• PACE Network: "100% industry coverage" in PACE loan stacking detection.
• MainNet: Live (no customer count, revenue, or query volume stated).
• No revenue, ARR, customer count, growth rate, or transaction volume figures provided.

Competitive framing:

• Positioned against Give-to-Get bureau models (siloed, centralized, high infosec risk) and screen-scrapers/aggregators (high infosec risk, low consumer trust, no enterprise monetization).
• Moat articulated as: patent-protected cryptographic protocol, no active middleman (direct exchange), data ownership preserved, incentive design for participants to share, broad institutional coverage (claimed 100% PACE industry).
• No named direct competitors in the deck.

Team:

• Adam Jiwan - Co-founder, Executive Chairman
• John Sun - Co-founder, CEO
• Anna Fridman - Co-founder
• Prior company building experience: Amount, Avant, Digital Disbursements, Future Finance.

Advisors: Sheila Bair (FDIC Chair), Nigel Morris (Capital One co-founder), Bobby Mehta (TransUnion CEO), Gary Cohn (Goldman Sachs President), Ray Lane (Oracle President / HP Chairman), Manolo Sanchez (BBVA Compass Chairman & CEO), Raj Date (CFPB Deputy Director), Brian Brooks (OCC Comptroller).

Funding: $38.75M total equity raised to-date. No current round size, valuation, or use of funds disclosed.

• Archetype + why: B2B SaaS / API data network model. Revenue is best modeled as recurring enterprise contracts (annual subscription or per-query fees) from institutional participants. Two revenue streams: (1) live products (PACE Network, MainNet) - fee-per-participant or per-API-call; (2) future products (Crypto Middleware, Spring Index) launching H2 2021. A network-effects layer matters: each new participant increases protocol value, so a participant-count driver is key. Not a 3-statement model at this stage - focus on ARR build, burn, and runway.

• Forecast horizon & granularity: 3 years (2021–2023), monthly for Year 1 (to capture H2 2021 product launches), quarterly for Years 2–3.

• Key drivers & assumptions:
• PACE Network participant count: start at 100% industry coverage as stated; monetize at $X/participant/year - no pricing in deck. Model sensitivity to $5K–$50K ACV.
• MainNet participant count: starting cohort unknown; assume 10–30 institutions at launch, grow 50–100% YoY.
• PACE Network ACV: $20K/institution/year as base case (placeholder; needs validation).
• MainNet ACV: $30K/institution/year (fraud/income data commands premium).
• Crypto Middleware launch: Q3 2021; assume 6-month sales cycle → first revenue Q1 2022.
• Spring Index launch: Q4 2021; assume longer sales cycle for threat-sharing product → first revenue Q2 2022.
• Gross margin: 70–80% (software/API model, minimal COGS).
• Revenue share or protocol fee: unclear if Spring charges a protocol fee in addition to product fees - flag as open question.

• Scenarios (Base / Bull / Bear - which variables flex):
• Bear: PACE Network saturates quickly (small industry), MainNet adoption slow (6 months delay), crypto products delayed to 2022; ACV at low end ($10K).
• Base: Steady participant ramp per above; crypto products launch on schedule; ACV at $20–30K.
• Bull: MainNet scales rapidly across 50+ institutions by end-2022; Crypto Middleware becomes primary revenue driver given market tailwinds; ACV achieves $50K+ with large bank deals.

• Required sheets / outputs:

1. Assumptions - participant counts, ACV, growth rates, product launch timeline.
2. Revenue build - by product (PACE, MainNet, Crypto Middleware, Spring Index); ARR waterfall.
3. P&L - Revenue, gross profit, opex (headcount, R&D, S&M, G&A), EBITDA, net loss.
4. Cash / Runway - starting cash (implied from $38.75M raised, unknown burn history), monthly burn, runway months.
5. KPI dashboard - ARR, participant count by product, net new ARR, gross margin %.