Vertice Financial Model

Vertice handles SaaS vendor negotiations on behalf of enterprise buyers. Three-step workflow:

1. Analyse customer's SaaS stack.
2. Map to customer objectives.
3. Negotiate to save the customer money.

Tech platform provides:

• Centralised 360° view of SaaS stack and renewal calendar.
• Streamlined approval workflow with legal compliance tracking.
• Integrations with major ERP, finance, and contract management systems (Microsoft, Amazon, Figma named in dashboard screenshot).

Value proposition: 25% average savings on SaaS spend; example shown: contract renewal reduced from $100,000 to $75,000 (saving $25,000 = 25%).

• Global enterprise SaaS spend: $150B+.
• Market growth: 20% p.a.; enterprise SaaS spend doubled in 4 years (2018–2022), +19% in 2022 alone (source: Gartner 2021).
• Vendor count: 15,000+ SaaS vendors globally.
• Key market thesis: 90% of SaaS buyers are overpaying vs. best-available price.

Not explicitly stated in deck. Inferred from context:

• Success-fee / gain-share model: Vertice takes a percentage of savings achieved. The consistent 25% average savings figure and the "we handle negotiations on both sides" framing suggest this is the primary monetisation lever. Rationale: common model for procurement-as-a-service; aligns incentives.
• Alternatively or additionally, a SaaS platform subscription fee for the tech dashboard (renewal management, compliance, integrations). Rationale: the tech platform slide implies ongoing software value beyond one-off negotiations.

• Demo dashboard (slide 08) shows one illustrative account: Total Savings $145,480; Total Annual Cost $595,950; Total Contracts Live: 26.
• Per-vendor savings rates visible in slide 06: Slack 90%, Dropbox 82%, Salesforce 54%, AWS 95%, one other at 82%.
• No aggregate revenue, customer count, ARR, or growth figures disclosed.

• Average savings per negotiation: ~25% of contract value.
• Example contract: $100,000 → $75,000 (Vertice saves customer $25,000).

Moat described as three interlocking advantages:

1. Data intelligence: Proprietary transaction database covering thousands of up-to-date SaaS deals providing pricing benchmarks.
2. Buying leverage: Repeated interactions with the same vendors → faster deals and deeper discounts; first to learn about price improvements and new SKUs.
3. Network effects: Learnings from one customer benefit all others.

Named competitive context: none disclosed. Social proof: "Trusted by the best" with unnamed client logos.

• Team track record: "Over $600M in successful SaaS exits"; prior companies include Wandera and ScanSafe.

• Archetype + why: Tech-enabled services / SaaS hybrid. Two revenue streams to model in parallel: (a) a success-fee / gain-share line (% of savings delivered × contracted SaaS spend managed), and (b) a SaaS platform subscription ARR line. The gain-share stream drives near-term revenue while the subscription provides recurring base. Primary model is a B2B services ARR + fee-per-deal model. A lightweight 3-statement can be added for investor presentation readiness.

• Forecast horizon & granularity: 3 years monthly (Year 1 monthly detail; Years 2–3 can be quarterly for outyears), given early stage and no disclosed revenue.

• Key drivers & assumptions:
• Number of enterprise customers signed: start at 5, ramp to ~50 by Y3; rationale: early-stage, no traction data disclosed.
• Average annual SaaS spend managed per customer: $500K–$1M; rationale: consistent with demo account showing $596K annual cost.
• Average savings rate delivered: 25%.
• Vertice take rate (% of savings shared as fee): 20–30%; rationale: standard for procurement-as-a-service models; no pricing disclosed.
• Platform subscription fee (if applicable): $20K–$50K/yr per customer; rationale: mid-market SaaS procurement software benchmarks.
• Gross margin on services: 60–70%; rationale: tech-enabled services with fixed analyst headcount scaling to volume.
• Customer acquisition: outbound sales + partner channel; CAC not disclosed.
• Churn / net retention: low churn (<10%) given sticky renewal-management workflow; NRR could be >100% if spend under management grows with customer.
• Headcount: small team (10–20 FTEs) with analysts / negotiators as primary cost driver.

• Scenarios (Base / Bull / Bear):
• Flex variables: customer ramp pace, take rate, avg spend managed per customer, headcount growth.
• Bear: slow enterprise sales cycle; 3 customers Y1, 15 by Y3; lower take rate (20%).
• Base: 5 customers Y1, 30 by Y3; 25% take rate.
• Bull: strong word-of-mouth from savings results; 10 customers Y1, 60 by Y3; subscription model gains traction; 30% take rate.

• Required sheets / outputs:
• Assumptions (all drivers toggled by scenario)
• Revenue build: customers × avg spend managed × savings rate × take rate (gain-share) + customers × platform fee (subscription)
• Cost build: headcount (analysts, sales, G&A), tech / infra, data ops
• P&L (monthly → annual summary)
• Cash & runway (if fundraise amount known)
• KPI dashboard: customers, ACV, spend managed, savings delivered, take rate, gross margin %