# Sternum Financial Model Sternum secures IoT devices from within using on-device, real-time attack prevention and monitoring via a proprietary EIV (Embedded Integrity Verification) technology. - Canonical: https://finamodel.com/startups/sternum - Excel download: https://finamodel.com/startup-models/sternum.xlsx - Category: Dev Tools - Model type: SaaS ARR / Valuation - Funding round: Series A - Funding: $65M - Founded: 2020 - Geography: Israel-headquartered (Unit 8200 / Cellebrite pedigree); target market appears global. - Customer: B2B ## About the company Sternum combines Embedded Integrity Verification, an on-device agent that prevents runtime exploitation without patching, with an Anomaly Detection System cloud dashboard. It works across Linux and RTOS, source and third-party code, and low-resource or legacy IoT devices, then surfaces attacks, CVEs, and fleet status. The implied model pairs per-device OEM licensing or royalties for embedded firmware with recurring SaaS monitoring fees for ADS. Device manufacturers are the primary buyers, supported by direct enterprise sales and partners such as Telit. The research does not disclose royalty rates, SaaS price, customer count, ARR, or growth. A dashboard demonstration showed 488 active devices, 444 out-of-date devices, 34 critical CVEs, and 1,128 update requests. Sternum won an RSA 2020 IoT cybersecurity award. The model should forecast OEM wins, devices shipped, licence price, fleet size, ADS ARR, cloud cost, expansion, and churn. ## 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 - Two components: (1) **EIV (Embedded Integrity Verification)** - a patent-pending on-device agent that prevents exploitation at runtime without requiring vulnerability patching; works on Linux and RTOS, both source and 3rd-party code, minimal overhead. 3 patents pending. - (2) **ADS (Anomaly Detection System)** - cloud/SaaS dashboard providing real-time monitoring, attack-attempt alerts, asset management, and CVE tracking across the managed device fleet. - Key differentiator: no patching required; works on low-resource, legacy and heterogeneous IoT devices; covers 3rd-party library code automatically. - Notable partners: Telit (one named partner; one CENSORED). - Winner of RSA 2020 InfoSec Awards - Next Gen Cybersecurity IoT Solution. ## Market - No explicit TAM/SAM/SOM figures in deck. - Market context provided via third-party stats: - >300% increase in IoT attacks in 2020 - >65% of CISOs unconfident in their ability to assess/mitigate IoT risk - >50% of CISOs plan to increase IoT security staffing & spending - 84% of businesses insufficiently prepared for IoT security - 70% more IoT devices would be purchased if they were secure - Ripple20 vulnerabilities affect hundreds of millions of devices across major vendors including Cisco, GE, NASA, Philips, Honeywell, Lockheed Martin, and 60+ others - Industrial IoT URGENT/11 vulnerabilities: $7B exposure - Norsk Hydro cyberattack cost ~$52M in a single quarter ## Revenue model - Not explicitly stated in deck. - OEM licensing / per-device royalty model: Sternum embeds its EIV agent into device firmware at the manufacturer level, suggesting a per-device royalty or OEM license fee paid by the device maker, plus a recurring SaaS subscription for the ADS monitoring dashboard. This is standard for embedded security vendors (e.g., Armis, Forescout). Rationale: product described as SDK/agent integrated into both Linux and RTOS device firmware; ADS is clearly a cloud-hosted SaaS layer. - Channel: direct enterprise sales to IoT OEMs / device manufacturers; integration partnerships (Telit is a connectivity module maker). Rationale: partner slide shows Telit, a major IoT module vendor. ## Traction & metrics - Active Devices on ADS dashboard (demo/UI screenshot): 488 - Out-of-date devices: 444 - Recent Security Issues: 9 - Update Requests: 1,128 - Unresolved Security Issues: 7 - Critical CVEs affecting devices: 34 - No revenue, ARR, customer count, or growth metrics shown. - Proven on "5-year-old" device - redacted reference. ## Competition / moat - Competitive framing: "IoT worldwide is growing exponentially, but security solutions are 20 years behind." - Moat claimed: patent-pending EIV technology (3 patents pending); integrity-based prevention (not signature/patch-based); works across heterogeneous OS/hardware without source code changes; minimal resource overhead. - No competitive matrix shown. - Team background: offensive and defensive cyber experts from Unit 8200 (Israel's elite signals intelligence unit) and Cellebrite (forensic/security firm). ## Team & funding ask / use of funds - Natali Tshuva - CEO - Boaz Shedletsky - CBO - Lian Granot - VP R&D - Arik Farber - Head of Research - Credentials: Unit 8200, Kellogg (MBA), Cellebrite ## Recommended financial model - **Archetype + why:** B2B SaaS + per-device OEM royalty model. Sternum has two revenue streams: (1) a per-device embedded license (royalty per unit shipped by OEM partners) and (2) an ADS recurring SaaS subscription (per-device or per-fleet annual fee for monitoring dashboard). The closest archetype is a usage-based / device-count SaaS model layered over an OEM royalty base - similar to IoT platform vendors (e.g., PTC ThingWorx, Armis). - **Forecast horizon & granularity:** 5-year annual model (Years 1–5), with Year 1 broken into monthly for cash runway tracking given early stage. - **Key drivers & assumptions:** - OEM partners signed per year - Average devices per OEM partner fleet - EIV license fee per device - ADS SaaS fee per active managed device per year - ADS attach rate (% of EIV customers also subscribing to ADS) - Ramp time from OEM signing to first device shipment - Headcount plan: 4 founders + - R&D spend - Gross margin on SaaS - Gross margin on licenses - **Scenarios (Base / Bull / Bear - which variables flex):** - Bull: faster OEM ramp (2 partners signed Y1), higher device counts, ADS attach rate 80% - Base: 1 OEM Y1, moderate fleet sizes, ADS attach 60% - Bear: 18-month sales cycle delays, only 1 OEM through Y2, ADS attach 40% - Flex variables: OEM ramp pace, devices per OEM, ADS attach rate, price per device - **Required sheets / outputs:** - Assumptions (all drivers, scenario toggle) - Revenue build (OEM partners × fleet size × royalty + ADS subscribers × SaaS fee) - P&L (revenue, COGS, gross profit, R&D, S&M, G&A, EBIT) - Cash flow & runway (monthly Y1, annual Y2–5) - Headcount plan - KPI summary (ARR, active managed devices, blended rev per device, gross margin %) ## Frequently asked questions ### Is the Sternum financial model free? Yes. The Sternum 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.