# WayRay Financial Model WayRay AG is a deep-tech company building holographic Augmented Reality Head-Up Displays (AR HUDs) for automotive OEMs and, longer term, other transport and building verticals. - Canonical: https://finamodel.com/startups/wayray - Excel download: https://finamodel.com/startup-models/wayray.xlsx - Category: Marketplace - Model type: SaaS ARR / Valuation - Funding round: Series C - Funding: $80M - Founded: 2022 - Geography: Incorporated in Switzerland (WayRay AG); R&D and manufacturing in Zurich (Swiss Technology Center) [DECK slide 54]; team multinational [DECK slide 42]. - Customer: B2B ## About the company WayRay develops holographic augmented-reality head-up displays for automotive OEMs and future transport applications. It supplies deep technology for windshield-integrated displays and plans an app-style ecosystem for third-party AR content inside vehicles. The company works with Tier 1 automotive suppliers and OEMs, earning prototype payments during development and license or royalty-like margin once systems enter mass production. It had raised $18 million, delivered proof-of-concept vehicle integrations, and built a team with a large R&D component. The model is a deep-tech hardware-licensing forecast. OEM programs, design-win probability, vehicle launch timing, units produced, and license rate create revenue after a long development cycle. R&D, prototype cost, supplier relationships, working capital, and future AR marketplace monetization determine the 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 - **Embedded Holographic AR Display**: windshield-integrated HUD using holographic optical elements (HOEs) - 12°×5° FOV delivered (potentially >25°×10°), system volume ~3L vs 18–22L for conventional HUDs, virtual image distance 0 to ∞. Primary revenue stream for the next decade. - **True AR Marketplace**: app-store equivalent for AR content running on the in-car display; 3rd-party developer ecosystem via True AR SDK. - **Add-on Holographic AR Display**: standalone visor-based device for non-automotive transport (trains, agriculture, construction, medical, air mobility). - **AR Side Windows / AR Smart Glass**: longer-horizon extensions to rail windows, cabs (ad-supported model), and commercial/residential buildings. - Key moat: proprietary photopolymer HOE film, custom in-house blue lasers, AR Rendering Engine (ARRE), vertically integrated R&D across chemistry, optics, electronics, hardware, and software. ## Revenue model Two confirmed streams: 1. **Hardware licensing / margin from mass production** - WayRay acts as technology partner to selected Tier 1 automotive suppliers. - Revenue flow: OEM pays Tier 1 for the system; Tier 1 pays WayRay a "margin from mass production (e.g. license fee)." - Prototype/PoC stage: OEM pays WayRay a one-time payment for prototype creation. 2. **True AR Marketplace** (future) - Platform for 3rd-party AR apps; revenue mechanism not specified in deck (likely app-store commission or developer licensing). No unit prices, ASPs, royalty rates, or revenue-share percentages are disclosed in the deck. ## Traction & metrics - **Funding**: $18M total raised; lead investor Alibaba Group. - **PoC projects**: successfully delivered proof-of-concept prototypes integrated into customer vehicles for "major European and Asian OEMs". OEM names not disclosed. - **Partnerships**: Honda Motor Company (announced at CES 2018); Alibaba as both investor and strategic partner. - **Team**: >230 members; 64% work in R&D. - **Roadmap position (as of deck date ~2018–2019)**: past PoC delivery; currently in "bringing product to RFQ readiness" phase; targets - Q4 2021 close Tier 1 supplier, Q2 2022 first RFQ, H2 2022 first large OEM contract, 2023+ start of production. - **Awards**: Grand Prize in Automobility (LA's Top Ten Automotive Startups, 2017); People's Choice Award at Startup Autobahn 2018. - No revenue, ARR, units shipped, or backlog figures in deck. ## Competition / moat - Conventional HUD players: Nippon Seiki, Denso, Continental, Bosch, Visteon - WayRay claims these are not true competitors because fundamental optical limitations prevent True AR. - WayRay claims no competitors in holographic AR HUD with its combination of large FOV, compact volume, and infinite virtual image distance. - Moat sources: 8+ years of R&D in holography; proprietary HOE photopolymer; custom lasers not available on market; deep vertical integration; IP described as "hard to reproduce". ## Team & funding ask / use of funds - **Team**: >230 people, 64% R&D; multinational; described as hailing from automotive, consumer electronics, optics, software, and internet companies. - **Key facility**: Swiss Technology Center in Zurich - R&D, prototyping, hologram mastering, manufacturing process development; laser labs, holography labs, experimental production, PCB assembly, vibration/climatic testing. - **Funding raised**: $18M total, Alibaba Group lead; media references also mention Hyundai and Porsche as later investors (VentureBeat/Business Insider URLs in slide 74, but amounts not in deck text). ## Recommended financial model - **Archetype + why**: **B2B hardware licensing / royalty model with a pre-revenue ramp**. WayRay is pre-commercial-contract; revenue will flow through Tier 1 license fees per unit produced, with a long lead time (OEM design cycle is 3–5 years). The True AR Marketplace is a secondary, later-stage platform revenue layer. Not a SaaS, not a DTC, not a marketplace-GMV model at this stage. The appropriate archetype is a deep-tech hardware licensing P&L built around unit volumes × royalty/license rate, with heavy front-loaded R&D opex and capex before any revenue. - **Forecast horizon & granularity**: 10 years (2019–2028); annual. First revenue expected H2 2022 per roadmap. Pre-revenue years modelled as pure burn (opex/capex). Monthly granularity only for the first 18 months of cash burn (pre-contract). - **Key drivers & assumptions**: - **OEM contract signing date**: Q2 2022 (first RFQ) → H2 2022 (first large OEM contract) - **Start of production (SOP)**: 2023+ - **Royalty / license fee per unit (HUD)**: $50–$150 per vehicle; automotive supplier royalties for safety-grade components typically in this range; no deck data - **Addressable vehicle volume (first OEM contract)**: single OEM model at ~100k–300k units/year in ramp year 1, scaling with additional model wins; no deck data - **Number of OEM contracts won**: 1 contract by H2 2022, 2–3 by 2025; no deck data - **Prototype/PoC revenue per engagement**: $0.5M–$2M one-time payment per OEM PoC; no deck data - **Headcount**: >230 at deck date; growing at ~15–20%/yr through 2022, then stabilising as production ramps - **Average fully-loaded cost per employee**: ~$120k–$150k (Switzerland-based; high-cost engineering talent) - **Opex burn (total)**: ~$30–40M/yr at current headcount run-rate; consistent with Series C-stage deep-tech company in Zurich - **Capex (Swiss Tech Center + equipment)**: $15–25M total through 2021; no deck data - **Marketplace revenue**: immaterial before 2025; modelled as percentage of HUD installed base × avg annual content spend; very wide uncertainty band - **Gross margin on license fees**: 60–75% (IP/royalty model, low direct COGS per unit once HOE manufacturing is outsourced to Tier 1) - **Cash balance at deck date**: ~$10–15M remaining from $18M raise (burn has occurred since raise); no data - **Scenarios (Base / Bull / Bear - which variables flex)**: - **Base**: First OEM contract H2 2022, SOP 2023, 1 additional OEM by 2025, royalty $80/unit, 150k units in ramp year - **Bull**: Contract signed Q2 2022, 2 OEMs in production by 2024, royalty $120/unit, faster volume ramp to 500k units by 2026, marketplace revenue kicks in 2025 - **Bear**: OEM contract slips to 2023 (automotive cycles are routinely delayed), single OEM, royalty $50/unit, additional capital required before SOP - **Required sheets / outputs**: 1. **Assumptions** - all drivers above, scenario toggle (Base/Bull/Bear) 2. **Revenue build** - PoC payments (near-term) + license fee per unit × volume by OEM contract, by year; marketplace revenue (later years) 3. **Opex / headcount** - R&D headcount × cost, G&A, facilities 4. **Capex schedule** - Swiss Tech Center build-out, equipment 5. **P&L** - Revenue, gross profit, opex (R&D, S&M, G&A), EBITDA, EBIT, net income 6. **Cash flow & runway** - Burn rate pre-revenue, funding requirements, breakeven date 7. **KPI dashboard** - Units in production, OEM contracts won, cumulative installed base, license revenue per unit, cash runway ## Frequently asked questions ### Is the WayRay financial model free? Yes. The WayRay 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.