# UtilizeCore Financial Model End-to-end automated platform for service management companies (brokerages) to procure, manage, and pay subcontractors delivering repair and maintenance to residential and commercial properties. - Canonical: https://finamodel.com/startups/utilizecore - Excel download: https://finamodel.com/startup-models/utilizecore.xlsx - Category: Fintech - Model type: Marketplace / GMV - Funding round: Seed - Funding: $5.3M - Founded: 2021 - Geography: Global (market framing is global; US-centric team/operations implied). - Customer: B2B ## About the company UtilizeCore automates how service-management companies procure, manage, and pay subcontractors for residential and commercial repair work. It connects brokerages, requesters, and subcontractors in a workflow that spans sourcing, work orders, invoicing, and payment. Requesters and subcontractors use the product for free, while brokerages are the paying customers. The platform has a recurring subscription engine and an alternative-billing opportunity linked to the substantial invoice volume managed through it. The model should forecast paid brokerages, subscription ACV, subcontractors and work orders per brokerage, invoiced volume, and any transaction take rate. Free-side adoption, brokerage retention, implementation, and payment or support costs show whether the network creates efficient expansion. ## 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-sided platform connecting: 1. **Service Management Companies (brokerages)** - paid subscribers; get full automation: AR, dispatch ops, provider marketplace, AP, integrations. 2. **Requesters** (property owners / clients of the brokerage) - free login to submit work orders. 3. **Subcontractors** (providers) - free login to receive, manage, and get paid for work. Core workflow automated: Receive Work → Find Contractor → Manage Work → Pay Contractor → Get Paid. Replaces dual-entry, manual processes, and siloed data. Supports trades including electrical, power wash, sweep, snow, pavement. 24 third-party integrations. ## Market - TAM: Global Outsourced Facility Management Market - **$680 Billion**. - SAM: Global Integrated Facility Management (IFM) Market - **$124 Billion**. - SOM / monetisation framing: **0.5% of subscriber revenue** taken as the UtilizeCore fee; no explicit SOM dollar figure or market growth rate stated. ## Revenue model - **Primary:** Recurring subscription charged to the Service Management Company (brokerage) - the "Paid Subscriber" centre card. - **Secondary:** "Alternative Billing" also mentioned alongside subscription - likely transaction/payment take-rate or usage-based billing; no pricing detail disclosed. - Requesters and subcontractors access the platform **free** - classic freemium flywheel; monetisation is entirely on the brokerage side. ## Traction & metrics All from slide 5: - **2,337,839** work orders processed (cumulative) - **125,312** highest monthly check-ins - **$1.3B+** managed services (total amount invoiced through platform, per slide 6 label) - **50,000+** companies on UtilizeCore - **24** third-party integrations No revenue, ARR, growth rate, churn, or retention figures disclosed. ## Competition / moat Not explicitly shown as a competition slide. Implied differentiation: - End-to-end automation vs. manual / dual-entry status quo. - Network effects: free subcontractor and requester logins create a two-sided supply of labour and demand - makes switching costly for paying brokerages. - 24 integrations deepen platform stickiness. - Advisory bench includes ServiceChannel veterans (Steven Gottfried built ServiceChannel ARR ~$0→$100M); Tom Edwards was CFO of ServiceChannel. ## Team & funding ask / use of funds **Founders**: - Ryan Gottfried (CEO/Co-Founder) - 10 yrs product at VMS/FMS platforms; co-founded Vetty (ERA & 3Lines backed); product at ServiceChannel, WorkMarket (ADP). - Jason Kwait (President/Co-Founder) - 7 yrs BD; co-founded Vetty, GuideU. - Johnny Zhu (COO/Co-Founder) - 7 yrs operations; founded Alto Arts; VP Shunyi Real Estate. - Tom Edwards (CFO) - CFO ServiceChannel 2009–2015; SVP First Advantage; Senior Manager Ernst & Young. - Steven Gottfried (Chairman) - CEO/Founder ServiceChannel (built $0→$100M ARR); CEO EquipID. **Notable advisors**: Bill Macaitis (ex-CMO/CRO Slack, Zendesk, Salesforce), Grant McGrail (SVP Sales TripActions/WeWork/Oracle), Justin Effron (Founder Alice, exit to Expedia), FM-industry advisors with facility management and PE-backed service business backgrounds. --- ## Recommended financial model - **Archetype + why:** B2B SaaS ARR model with a transaction/take-rate layer. The brokerage-facing recurring subscription is the primary revenue engine; "alternative billing" suggests a payment/take-rate stream tied to work-order volume ($1.3B+ invoiced through platform implies meaningful transaction flow). This is a vertical SaaS + embedded fintech hybrid - model both. - **Forecast horizon & granularity:** 5-year annual model (Years 1–5) with monthly detail for Years 1–2. Paying customer (brokerage) count is the north-star driver. - **Key drivers & assumptions:** - New paid subscriber adds per month: driven by a sales-capacity model (reps × quota); start with 50 net adds/month. - Annual churn rate (paid brokerages): 10% p.a. - typical early-stage vertical SaaS. - Take-rate / alternative billing: ~0.5% of managed services invoiced; applied to work-order dollar volume per paying brokerage. - Work orders per paying brokerage per month: derived from 2,337,839 cumulative WOs ÷ 50,000 companies; ~47 WOs/company historically - skewed by free users; paid brokerages likely higher volume, assume 200 WOs/month. - Average work-order value: $130 (implied: $1.3B+ ÷ ~10M WO equivalents at scale); confirm with company. - Free-to-paid conversion of the 50,000+ companies on platform: 1–3%; this is the near-term upsell lever. - Gross margin: 70–80% - typical B2B SaaS; payment processing costs reduce margin on take-rate stream. - **Scenarios (Base / Bull / Bear - which variables flex):** - Base: 1% free-to-paid conversion; $800 ARPU; 10% churn; 0.5% take-rate on WO volume. - Bull: 3% conversion; $1,200 ARPU; 7% churn; take-rate expands to 0.75%; faster WO volume growth. - Bear: <1% conversion; $500 ARPU; 15% churn; take-rate revenue stalls (brokerages resist payment product). - **Required sheets / outputs:** 1. Assumptions - all drivers, toggleable by scenario. 2. Subscriber model - paying brokerage cohort waterfall (new adds, churn, net adds, ending count). 3. Revenue build - subscription ARR + transaction/take-rate revenue. 4. P&L - gross profit, S&M, R&D, G&A, EBITDA. 5. Cash & runway - burn, cash balance, months to breakeven. 6. KPI dashboard - ARR, net revenue retention, LTV/CAC (once CAC data available), GMV (managed services invoiced). ## Frequently asked questions ### Is the UtilizeCore financial model free? Yes. The UtilizeCore 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.