Financials
A structure, not a promise — every figure below is illustrative and to be finalized with the founder and counsel.
Confidential · June 2026. This document presents an illustrative financial model. All dollar figures are placeholders and labeled illustrative. Nothing here is a forecast, a commitment, or a representation of realized results. Final numbers, structure, and terms are subject to review with Richard Taubin and counsel.
govrn earns across four lines that map to the two lenses of one record — the standard (See + Prove) and the Aperture engine (Run). The shape below explains how those lines fit together. The amounts are seeds for a conversation, not outputs of a closed pipeline.
Revenue Lines
| Line | Lens | What it is | Cadence |
|---|---|---|---|
| Assessment baseline | govrn | Three-lens assessment + six-framework crosswalk; the entry point | One-time, per engagement |
| Managed run | Aperture | The deterministic engine running against connected systems; shadow-AI with a dollar figure | Recurring subscription |
| Attestation | govrn | Independent attestation against a fresh record | Recurring (renewal-driven) |
| Enterprise license | both | Licensing the process, product, and brand to a channel or enterprise | Annual / multi-year |
The annuity sits in the second and third lines. An attestation is valid only against a fresh record, so continuous measurement is structurally required to keep an attestation current — the running engine and recurring attestation reinforce each other. Evidence stays portable: we deliver coupled and renew decoupled, so renewal is earned, not locked.
Unit Shape
Each line carries a different cost profile, and the blended margin depends on the mix.
- Assessment baseline — services-front: expert time, framework mapping, attestation prep. Lower margin, high trust value, opens the account.
- Managed run — software-under: the Aperture engine is deterministic with no model in the measurement path, so marginal cost per record is low once connectors are live. Highest-margin line at scale.
- Attestation — services-plus-software: independent review with engine-generated evidence underneath. Margin rises as the record does more of the work.
- Enterprise license — software-under: near-zero marginal cost, gated by deal structure.
Unit Pricing (by company size)
Per-engagement pricing is set as indicative ranges anchored to company size — the unit economics that anchor the model. The initial assessment ("the discovery") runs $150K to $350K by size; the build, managed-run, and attestation scale on top as the annuity.
| Tier | Initial assessment | Implement build | Operate / run (yr) | Attestation (yr) |
|---|---|---|---|---|
| SMB (<200) | $150K–$175K | $150K–$300K | $90K–$160K | $45K–$85K |
| Mid-market (200–2,000) | $200K–$250K | $300K–$600K | $180K–$350K | $90K–$160K |
| Enterprise (2,000+) | $300K–$350K | $500K–$1M | $350K–$700K | $200K–$400K |
| Regulated-enterprise | $350K+ (custom) | $1M–$2M+ | $600K–$1.2M | $350K–$650K |
For a mid-market account (where Grace Hill lands), the one-time work is roughly $135K–$250K and the recurring lines $105K–$205K/yr — so the annuity matches the build within about two years and compounds from there. Indicative, finalized on the assessment + scoping.
Gross-Margin Logic
The model is software-under, services-front. Early revenue leans on assessment and attestation services (margin in the 40–60% range (illustrative)). As the managed-run base grows on the deterministic engine, blended gross margin shifts toward software economics (70%+ (illustrative)). The "pointers not payloads" design — metadata-only, enforced — keeps run-time data and storage cost structurally low, which protects margin as volume scales.
Reminder: the percentages above are illustrative ranges to frame the structure, not measured results. The engine is pre-MVP on live data; connectors are built but have not yet run against a live API. Per-engagement pricing is now set (see Unit Pricing above), so the revenue side has an anchor; the cost side — cost-per-record and CAC — still builds with the first design-partner data, which is what turns these margin ranges from structural into measured.
Three-Year ARR Ramp
Built bottom-up from the unit pricing above — engagements × the per-tier ranges — so the shape is grounded, not plucked. Still a structure, not a forecast. ARR is the recurring base (managed-run + attestation); the mix shift from services to ARR is the whole point.
| Year | Primary motion | Engagements (illus.) | Total revenue (illus.) | Exit ARR (illus.) | Margin mix |
|---|---|---|---|---|---|
| Y1 | Entity stand-up; engine to live data; first design partners | ~4 | ~$1.0M | ~$0.3M | services-weighted |
| Y2 | Kelly channel opens; managed-run base builds | ~12 | ~$3.0M | ~$1.6M | blending toward software |
| Y3 | Recurring attestation + first enterprise license compound | ~24 + license | ~$7.0M | ~$4.0M | software-weighted |
How it builds. A mid-market engagement is ~$65K assessment + ~$160K build one-time, then ~$175K/yr recurring (operate + attest). ARR is that recurring base: thin in Y1 (a few operate contracts go live late), compounding in Y2 as the channel stacks new engagements onto a retained Y1 base, and by Y3 the recurring lines plus a first enterprise license make recurring the majority of revenue. The annuity overtaking services is the thesis — by Y3, exit ARR (~$4M) is the engine of the business, not the assessment fees that opened the accounts.
Every figure is illustrative — a grounded structure, not a forecast or commitment. The engagement counts, conversion, and retention that drive these totals are assumptions to be replaced with real design-partner and channel data; final model and terms are set with Richard and counsel.
Use of Funds
Entity-first. Capital stands up the company before any partner conversation.
- Engine to production — multi-tenant isolation, auth, RBAC, audit; connectors from built to live-tested.
- Team — complete the engine team (the incoming SME repository identifies the full roster); see Team.
- Attestation independence — keep the attest arm structurally separate from build/run; that separation is the moat.
- GTM — Kelly as first channel; Microsoft as the horizon.
For market context see Market; for how revenue is earned see Business Model. All amounts remain illustrative pending finalization with the founder and counsel.