Investment Overview
$5,000,000
Revenue Participation Raise • Operational AI Infrastructure
We are raising $5M at a $20M company valuation. No equity. No board seats. Investors receive 15% of gross revenue until they have received $12.5M — a 2.5x return — while we retain complete operational control. Here is the full picture.
After the $12.5M is received, investors continue to receive 3% of gross revenue in perpetuity — no cap, no expiration. The upside does not stop at 2.5x.
Valuation Rationale
Why $20 million is the right number.
Comparable market valuations in 2026
ElevenLabs raised at an $11B valuation for a single voice AI capability. OpenEvidence — a medical AI chatbot — raised $250M at early stage. Arena, an LLM evaluation platform one year after product launch, raised at $1.7B. Agentic AI companies with demonstrated revenue are transacting at 30–60x ARR. Our $20M entry valuation is priced significantly below where the market is currently clearing for this category.
TechCrunch, Crunchbase Q1 2026 Global Venture Report
Working platform with zero external funding
Pre-revenue. Not pre-proof. We are in early deployment, prioritizing system scaling and optimization before flipping the sales switch. The $5M raise funds the human sales and onboarding layer required to convert our validated pipeline into paying clients. Today, unfunded and unsold: 200,000+ agent executions, 24 live email sequences running across our target verticals, 90%+ deliverability and zero bounces, 28–32% reply rate against a 3–5% industry standard, and 3 high-value custom builds in pipeline.
Internal — May 2026
Revenue model with near-zero marginal cost at scale
Because our core infrastructure is self-hosted and clients cover their own LLM usage fees, our compute costs are fixed — not per-call. Competitors running on cloud APIs face costs that grow linearly with usage. This platform does not. That structure targets 80%+ gross margins at scale and ensures the company retains ample operating cash even while paying investor revenue share.
Platform cost structure
A drastically underserved market
No purpose-built, affordable agentic AI operational system exists for the mid-market. Enterprise platforms cost $200K+ to implement. Generic AI tools don't take action. Workflow automation breaks on exceptions. The gap is real, it is large, and it is currently ours.
Competitive analysis, May 2026
Deal Structure
Revenue participation. Not equity.
We are not selling ownership of this company. We are offering investors a direct participation in revenue growth with a step-down structure that provides immediate yield and permanent upside.
Revenue participation
Investors receive 15% of gross revenue — supported by our 80%+ gross margins — starting Month 1, until they have received $12.5M (a 2.5x return on the $5M raised). After the 2.5x cap is reached, the payout steps down to 3% of gross revenue in perpetuity. This gives investors permanent, uncapped upside as the company scales, while drastically improving company cash flow. No equity transferred. No exit event required.
What investors receive
Quarterly reporting on revenue, client growth, and operational metrics. Audit capability. No equity dilution. No board obligations. No governance burden. Exit protection & buyout: If the company is acquired before the 2.5x cap is reached, the remaining unpaid balance is paid immediately from sale proceeds. If acquired after the 2.5x cap (during the 3% step-down), the royalty is terminated and the investor receives a one-time buyout of 3x their trailing 12-month royalty payments.
This structure is better for investors than equity at early stage: returns are tied directly to revenue, not to an exit event that may be years away. And it is better for the company: we stay focused on building, not managing investor relationships, board politics, or exit timelines.
Revenue Projections
12-month path to $10.8M annualized run-rate.
These projections are based on subscription revenue only — no enterprise custom builds, no white-label partnerships, no outreach-as-a-service revenue. All figures are from our internal 12-month projection model built on a single cold email channel at 0.25% close rate. Actual upside is higher. Month 12 gross revenue: $900,147. Year 1 cumulative gross: $6.7M.
Month 1
Launch
gross/mo
27 clients
Month 6
Mid-year
gross/mo
~840 clients
Month 12
Year 1 close
gross/mo
1,858 clients
Year 1 Total
Cumulative gross
revenue
$10.8M annualized
Monthly Gross Revenue Trajectory — Year 1 ($K)
How these numbers are built: The base subscription is $499/month per client. Many clients are expected to add optional modules at $199/month each. All projections use the base price only — add-on revenue is not modeled. Clients who prefer a one-time arrangement pay a flat fee of $4,999. Projections assume a 0.25% cold email close rate on a single outbound channel — no inbound, no partnerships, no referrals. In early soft deployment, outreach is already producing a 30% reply rate, well above the 3–5% industry standard. The projection model does not credit this performance; it uses a conservative conversion assumption throughout. Actual revenue per client is expected to be higher than modeled.
Use of Funds
Where the capital goes.
Every dollar is allocated to activities that directly grow revenue or expand the platform's defensibility. At $5M, the actual infrastructure costs ($210K upfront, $317K–461K/year in operating burn) are fully covered — the majority of the raise goes to sales, team, and distribution.
Demand Generation & Market Capture
$3M — The AI handles the sales process, but it needs fuel. Because client revenue covers our infrastructure scaling (hardware, backups, operational bills), this capital is deployed entirely into market capture. This funds premium data providers for AI outreach targeting, cybersecurity and deliverability tools, aggressive demand generation (digital, vertical events, brand presence), and partnership development with industry associations (insurance, dental, real estate). Goal: 1,000+ paying clients by Month 12. We are buying market share, not human sales reps.
Technical Team Expansion
$1M — Additional AI Systems Technicians and cybersecurity specialists to manage increased cluster deployment, monitor infrastructure health, and handle inbound client logistics. Current team: 3 AI technicians + 1 cybersecurity specialist at $20K–$29K/month total. Scales proportionally with client growth.
Product Development
$500K — Self-serve onboarding, expanded workflow templates for new verticals, and deeper integrations with industry-specific platforms (AMS, PMS, CRM). Expand the three-workflow model into new industries.
Legal, Finance & Reserve
$500K — IP protection, compliance monitoring as AI-in-operations frameworks evolve, CFO-level oversight, insurance, and a reserve buffer for unexpected infrastructure scaling or onboarding costs as client volume accelerates.
Scalability Model
The replication advantage.
This entire raise — and the $10.8M annualized run-rate it produces — is built on a single infrastructure cluster. Each cluster is designed to support 1,000+ clients. At approximately that threshold, we don't rebuild. We replicate.
Cluster 1 — This Raise
- — Proprietary compute hardware ($150K)
- — Dedicated facility (solar, electrical, fiber)
- — 3 AI technicians + 1 cybersecurity specialist
- — Initial infrastructure modeling targets 1,000+ clients per cluster, with additional optimization expected as deployment density increases.
- — $10.8M+ annualized run-rate at scale
- — Funded entirely by the $5M raise
Cluster 2 — Revenue-Funded
- — Identical hardware spec — proven, not experimental
- — Same facility model — known cost, known timeline
- — Same team structure — no new playbook required
- — Funded by Cluster 1 revenue
- — No external capital needed to replicate
- — Launches when Cluster 1 approaches capacity
Cluster N — Compounding
- — Each cluster adds ~$10M+ annualized revenue capacity
- — Each cluster funds the next
- — Upfront cost per cluster: ~$210K hardware + facility
- — Operating cost per cluster: $317K–$461K/year
- — Capital requirement drops with each replication
- — Investors participate in every cluster's revenue
Why this matters to an investor
Cluster 1 is the first production deployment at scale. Every cluster after it is pure replication — same spec, same model, same cost structure. Scaling risk drops dramatically once the first cluster reaches capacity. Additional clusters are deployed once infrastructure utilization reaches operational thresholds that could impact deployment speed or redundancy.
The capital requirement decreases as scale increases. Revenue from Cluster 1 funds Cluster 2. Cluster 2 funds Cluster 3. The business becomes self-replicating.
This is closer to a franchise model with owned infrastructure than a typical SaaS scaling story. Franchises trade at a premium because replication risk is low and unit economics are known before expansion.
If we reach 1,000 clients ahead of schedule — because a partnership brought volume, or vertical expansion accelerated — the cluster replicates faster. Faster capacity = faster revenue. The constraint is a feature, not a ceiling.
The operational architecture already exists. Scaling is deployment and replication — not reinvention.
Return Potential
The math on this investment.
Two scenarios — a conservative baseline, and a market-rate scenario reflecting how agentic AI companies are actually transacting in 2026.
Conservative Scenario
Year 1 annualized run-rate
$10.8M
Applied multiple — Below current market floor of 30x
15x
Implied company value — 8.1x on the $20M valuation today
$162M
Market-Rate Scenario
Year 1 annualized run-rate
$10.8M
Applied multiple — Mid-range for agentic AI in 2026
30x
Implied company value — 16.2x on the $20M valuation today
$324M
In Q1 2026, multiple vertical AI companies with under $3M ARR were funded at valuations exceeding $150M. ElevenLabs raised at $11B for a single voice AI capability. Arena reached $1.7B one year after product launch. Inferact raised $150M at an $800M valuation mere months after founding. We have a working platform, live agents, and an outreach system already producing results. The $20M company valuation here is the earliest-stage price this category will ever offer.
The giants have announced it. They haven't built it for the mid-market.
Five of the largest enterprise software platforms in the world have launched agentic AI products for workforce automation. All five are priced, structured, and sold exclusively to large enterprises — the minimum viable client is typically 500–1,000+ employees, with implementation costs alone starting at six figures. The 50-person dental practice and the regional insurance office cannot buy any of them. That is the gap we operate in.
The dominant US payroll & HR platform
Payroll + HR AI Automation
Built for
Existing platform customers only — mid-market to enterprise (50–5,000+ employees). Not available to any business that isn't already a subscriber.
Cost
Not sold standalone — embedded in existing subscriptions. Underlying platform: $18–27/employee/month for mid-market; enterprise is custom quote.
The gap
Only accessible if you're already paying for the base platform. New businesses cannot purchase the AI layer independently. No outreach, no campaign logic, no performance management.
The Fortune 500's HR & finance platform
Enterprise HCM + Finance AI — 14+ Agents
Built for
Enterprise — serves 65%+ of the Fortune 500, 11,000+ organizations globally. No mid-market offering exists.
Cost
Never publicly disclosed. Sold through consumption credits bundled into enterprise contracts. Third-party estimates: $300K–$1M+ annually, before customization and implementation.
The gap
No mid-market path exists. Requires an existing enterprise subscription plus an implementation cycle measured in quarters. Entry cost is prohibitive for any sub-500-employee business.
The world's largest professional network
AI Recruiting Automation — Corporate Tier
Built for
In-house enterprise talent acquisition teams. Corporate tier requires a direct sales engagement — no self-serve path for smaller businesses.
Cost
$8,999–$15,000+ per seat per year (Corporate tier). Multi-seat deployments run $32,400+/year.
The gap
Recruiting function only. No operational AI, no sales outreach, no workflow automation outside of hiring pipelines. Irrelevant to revenue operations.
The enterprise IT & workflow automation leader
Agentic Enterprise Workflow AI
Built for
Large enterprise IT, ITSM, and operations teams. Minimum viable client is typically 1,000+ employees.
Cost
Not publicly published. Analyst estimates for enterprise agentic tiers start at $150K/year; full implementations run $500K+.
The gap
Designed for internal IT operations only. No capability for sales outreach, client acquisition, or any external-facing revenue workflow.
The enterprise workforce management platform
HR + Workforce Management AI
Built for
Mid-large enterprise, 750–25,000+ employees. HR, payroll, and internal workforce scheduling.
Cost
$32–41 per employee per month. A 1,000-employee company: $384K–$492K/year in software alone, plus $153K–$344K implementation. Total first-year: $537K–$836K.
The gap
Built to manage existing employees — not to automate client-facing or revenue-generating operations. No outreach, no sales automation, no external workflow capability.
The minimum viable client for any of these platforms is roughly 10x the size of our target customer. A 40-person dental group or a regional insurance brokerage is invisible to all five of them — too small to buy, too small to serve, and too small to matter. They are precisely the businesses we serve. And none of these platforms are coming for them any time soon.
Early Mover Precedent
Every major technology category has been defined by the company that moved first and built deep enough roots before the incumbents arrived. The pattern is consistent.
Salesforce
VerifiedCRM — Cloud SaaS
Launched in 1999 as the first cloud CRM when enterprise software was still on-premise. Built category dominance before Microsoft, Oracle, and SAP could respond. Still the category leader 25+ years later.
Public record — Salesforce founded 1999
Zoom
VerifiedVideo Conferencing
Purpose-built for ease of use before the COVID inflection point. When remote work became mandatory overnight, Zoom was the only product ready to scale. Microsoft Teams and Google Meet never closed the trust gap built in that window.
Public record — Zoom IPO 2019, COVID adoption 2020
Uber
VerifiedRide-sharing
Launched in a category that didn't exist and built regulatory relationships, driver supply, and rider trust before any incumbent could replicate the model. First-mover network effects proved effectively unbreachable.
Public record — Uber founded 2009
In each case: the window between "the incumbents know this exists" and "the incumbents are ready to compete" was the entire game. The companies that used that window to build deep client relationships and operational infrastructure became category leaders. The ones that waited became acqui-hire targets.
Why now, not later.
Revenue Streams
Four ways the platform generates revenue.
Every stream runs through the same infrastructure. Margins expand as volume grows.
Managed Subscription Deployments
Three-workflow system deployed and maintained for mid-market clients. $499/mo base + $199/mo per additional workflow module. Month-to-month. No contracts. Clients get a running operational system, not a software subscription.
$499/mo base — additional modules at $199/mo each
Custom Enterprise Builds
For organizations that need a purpose-built agentic system — not a template. Full operational automation across business functions, built from scratch for the client's specific systems and processes. Three in active development.
$100K+ per build — currently 3 in pipeline
Outreach as a Service
Our email agents produce 28–32% reply rates against a 3–5% industry standard. That capability is a product in itself. Clients pay per campaign — we run the entire outreach operation end-to-end.
Per-campaign pricing — system already live and proving
Affiliate Program
Satisfied clients and industry partners become a distribution network. Commission on referred customers. Low-CAC acquisition that scales without proportional sales headcount.
Commission-based — zero incremental infrastructure cost
Ready to Move Forward?
What happens next.
The process is straightforward. Four steps from first contact to formal documents.
Express interest
Submit your details through the form at the bottom of any page.
Execute an NDA
A mutual non-disclosure agreement connects you directly with the founding team.
Meet the team
Schedule a call directly with the founding team.
Receive documents
Formal offering documents are provided if you choose to proceed.