# Vertice Financial Model SaaS procurement platform that negotiates, benchmarks, and manages enterprise SaaS spend to deliver cost savings. - Canonical: https://finamodel.com/startups/vertice - Excel download: https://finamodel.com/startup-models/vertice.xlsx - Category: Enterprise/Security - Model type: SaaS ARR / Valuation - Funding round: Series A - Funding: $26M - Founded: 2022 - Geography: Global (15,000+ local & global vendors cited) [DECK slide 02]. - Customer: B2B ## About the company Vertice is a SaaS procurement platform that negotiates, benchmarks, and manages enterprise software spend. It is designed to help companies control a fragmented vendor base and turn software purchasing into a more visible, repeatable finance and procurement process. The commercial model may combine recurring platform subscriptions with fees linked to savings delivered. That makes SaaS spend managed and the realised savings rate important model assumptions; the deck cites a market of more than 15,000 local and global vendors. The model separates subscription ARR from success-fee revenue, then tracks customers, spend under management, savings, renewals, and expansion. Delivery costs, sales capacity, gross margin, product investment, and overhead show the cash needs under different fee-mix scenarios. ## 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 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%). ## Market - 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. ## Revenue model 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. ## Traction & metrics - 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. ## Unit economics - Average savings per negotiation: ~25% of contract value. - Example contract: $100,000 → $75,000 (Vertice saves customer $25,000). ## Competition / moat 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 & funding ask / use of funds - Team track record: "Over $600M in successful SaaS exits"; prior companies include Wandera and ScanSafe. ## Recommended financial model - **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 % ## Frequently asked questions ### Is the Vertice financial model free? Yes. The Vertice 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.