# Themis Financial Model

SaaS compliance management platform for fintechs and financial institutions - "Create a Culture of Compliance"

- Canonical: https://finamodel.com/startups/themis
- Excel download: https://finamodel.com/startup-models/themis.xlsx
- Category: Fintech
- Model type: SaaS ARR / Valuation
- Funding round: Seed
- Funding: $9M
- Founded: 2022
- Geography: US primary (fintech, credit unions, community banks, broker-dealers); EMEA + APAC fintechs and global crypto companies as expansion markets
- Customer: B2B

## About the company

Themis is a SaaS compliance-management platform for fintechs and financial institutions. Its proposition is to help regulated companies create a more systematic culture of compliance through modular software workflows.

The product has a phase-based upsell path, allowing a customer to adopt foundational compliance capabilities and then add further modules. That structure supports a recurring enterprise SaaS model in which account expansion can be as important as new-logo sales.

The model should forecast new customers, initial ACV, module adoption by phase, implementation, renewal, and churn. Expansion ARR should be visible as a distinct bridge from new ARR, while sales-cycle length, customer concentration, and support cost determine the realistic path to scale.

## 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

- Single platform to manage risk and compliance workflows; replaces a "hodgepodge of point solutions" and spreadsheets
- Key pillars: common compliance framework to accelerate bank-fintech partnerships; zero implementation time; built-in compliance expertise; real-time source of truth
- Modular architecture: Basic Modules (policies, training) → Regulatory Modules (SEC, FINRA, OCC) → Marketplace (templates, integrations with HR tools / Google Drive); includes Collaborative Workspaces, Vendor Due Diligence, Issue Management, Complaints, Risk Assessment
- Phase 3 target: support companies becoming regulated banks (FINRA 4530, FINRA API, Reg Identifier)
- AICPA SOC certification mentioned
- Built by "regulators, compliance officers and innovative thinkers"

## Market

- US Financial Industry annual spend on compliance: $50B/yr
- TAM: $22.8B
- SAM: $4.6B
- Addressable customer segments (2024 projected totals):
  - Midsize financials / insurance (US): 54,688
  - Traditional finance (credit unions / community banks / broker dealers, US): 35,686
  - US Fintechs: 24,273
  - EMEA + APAC fintechs: 13,000
  - Crypto companies (global): 3,021
  - Total: 130,668
- Chart spans 2019–2024; all segments show growth; US fintechs and midsize financials are fastest-growing lines

## Competition / moat

- Problem framing implies competition = fragmented point solutions + spreadsheets
- Moat claimed: integrated data across modules (holistic risk picture), built-in compliance expertise, no implementation time, collaborative workspaces enabling bank-fintech partnerships
- Named regulators covered: SEC, FINRA, OCC, NYDFS
- Direct competitors not named in deck

## Team & funding ask / use of funds

---

## Recommended financial model

- **Archetype + why:** SaaS ARR model. Themis is a modular B2B SaaS platform with a clear phase-based upsell path (Phase 1 → 2 → 3). Revenue is best modelled as new logo acquisition × ACV, with expansion revenue from module upgrades. No transactional or usage-based signals in deck.

- **Forecast horizon & granularity:** 5 years (2024–2028); monthly for Year 1, quarterly for Years 2–5. Company appears early-stage (2021 deck, no revenue disclosed), so a monthly cash-burn / runway view in Year 1 is material.

- **Key drivers & assumptions:**

| Driver | Value |
| -- | -- |
| TAM | $22.8B |
| SAM | $4.6B |
| Total addressable customers (2024) | 130,668 |
| Initial target segment | US Fintechs (24,273 by 2024) |
| Annual contract value (ACV) - Phase 1 | $6,000–$12,000/yr |
| ACV - Phase 2 upsell | $18,000–$36,000/yr |
| ACV - Phase 3 (bank-level) | $60,000–$120,000/yr |
| New logos per quarter (Year 1) | 5–15 |
| Logo churn rate | 8–12%/yr |
| Gross margin | 70–80% |
| Sales cycle | 60–90 days |
| Expansion / upsell rate | 15–25% of base annually |
| Headcount-driven opex | 3–5 FTE sales/CS at launch; scale with ARR milestones |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - **Bear:** New logos = 5/qtr in Year 1, plateau; churn = 12%; ACV stays Phase 1; Phase 2/3 adoption minimal
  - **Base:** New logos ramp to 20/qtr by Year 2; churn = 8%; 25% of cohort upgrades to Phase 2 in Year 2; gross margin 75%
  - **Bull:** New logos ramp to 40/qtr by Year 2 (crypto + EMEA expansion); churn = 5%; 40% cohort upgrades; Phase 3 enterprise logos close in Year 3

- **Required sheets / outputs:**
  1. Assumptions - all drivers toggled per scenario
  2. Customer Cohort Model - monthly new logos, churn, net logo count by phase
  3. ARR Bridge - new ARR, expansion ARR, churned ARR, net new ARR
  4. P&L - revenue, COGS (gross margin), S&M, R&D, G&A, EBITDA
  5. Cash Flow / Runway - monthly burn, cash balance, months of runway
  6. SaaS Metrics Summary - ARR, MRR, NRR, LTV, CAC payback (inputs assumed)
  7. Dashboard - ARR waterfall chart, cohort heatmap, runway chart

## Frequently asked questions

### Is the Themis financial model free?

Yes. The Themis 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.