Financial projections

Model and targets being built out here.

An overview of the model

The revenue model has been built using two levers of growth. The first is using a standard cost per acquisition model, where new startup acquisition derives from marketing spend divided by an assumed cost per acquisition. We’ve used a conservative assumed cost of acquisition of £2000 which is based on nearly 3 years of running a growth agency targeting a similar audience.

The second lever for growth is an assumed referral coefficient based on the number of members in the Growth DAO community. One of the most powerful mechanisms in the Growth DAO are the referral rewards that get distributed to members for referring new startups. We have already proved the concept at Growth Division - community referrals have been one of our most successful channels for growth. With a better integrated and more reliable referral reward system in place we hypothesise there will be good uptake to this scheme which will be one of the main drivers of growth for Growth DAO.

Targets

The first year projections have been mapped out with very conservative targets. We want to spend the first year validating the technology we want to use and the structures we want to put in place. Our goal is to use this first year to build a vetted community of the best growth talent aiming to acquire 250 community members and 25 startups across the year. In this first year we aim to raise a £1m round for the Liquidity Pool fund (more on this below), £50k of this will be an investment directly into Growth DAO for the organisation’s growth and operations.

By the end of year 3 we’re looking to have scaled our member community to 50k members working across 25k startups. Fuelled by further contributions from the Liquidity Pool and the flywheel effect of referrals from new members we’re anticipating.