Capitalization scenarios
Three ways to fund the build.
Choose a capitalization level. Every number below is an editable, illustrative projection — not booked revenue, not actuals, not an offer of securities.
Lean validation
$50,000
Base case Reconciles to the original base case: $259,600 Y1 revenue, $39,800 operating profit.
Y1 revenue (projected)
$259,600
Y1 operating profit
$39,800
Operating margin
15.3%
M12 MRR · seats
$44,000 · 20
Break-even seats
7
Break-even month
M5
Lowest cash / peak used
$35,400 / $14,600
Runway at peak burn
6.7 mo
Editable operating assumptions
Seat ramp M1–M12
Headcount = seats + 1 supervisor per 10 seats + founder (assumption). Revenue assumed collected in month billed.
Allocation of funds · editable
Total $50,000 ✓ equals capitalization
Planning envelope for how capital would be deployed; monthly costs in the model are funded from capital plus projected revenue. Subject to confirmation.
12-month ramp · projected
| Mo | Seats | Clients | Headcount | Revenue | Payroll/delivery | Fixed OH | Marketing | Op. profit | Cum. cash |
|---|---|---|---|---|---|---|---|---|---|
| M1 | 2 | 1 | 4 | $4,400 | $2,200 | $6,750 | $750 | -$5,300 | $44,700 |
| M2 | 3 | 2 | 5 | $6,600 | $3,300 | $6,750 | $750 | -$4,200 | $40,500 |
| M3 | 4 | 2 | 6 | $8,800 | $4,400 | $6,750 | $750 | -$3,100 | $37,400 |
| M4 | 5 | 3 | 7 | $11,000 | $5,500 | $6,750 | $750 | -$2,000 | $35,400 |
| M5 | 7 | 4 | 9 | $15,400 | $7,700 | $6,750 | $750 | $200 | $35,600 |
| M6 | 8 | 4 | 10 | $17,600 | $8,800 | $6,750 | $750 | $1,300 | $36,900 |
| M7 | 10 | 5 | 12 | $22,000 | $11,000 | $6,750 | $750 | $3,500 | $40,400 |
| M8 | 12 | 6 | 15 | $26,400 | $13,200 | $6,750 | $750 | $5,700 | $46,100 |
| M9 | 14 | 7 | 17 | $30,800 | $15,400 | $6,750 | $750 | $7,900 | $54,000 |
| M10 | 16 | 8 | 19 | $35,200 | $17,600 | $6,750 | $750 | $10,100 | $64,100 |
| M11 | 17 | 9 | 20 | $37,400 | $18,700 | $6,750 | $750 | $11,200 | $75,300 |
| M12 | 20 | 10 | 23 | $44,000 | $22,000 | $6,750 | $750 | $14,500 | $89,800 |
| Y1 | 118 | — | — | $259,600 | $129,800 | $81,000 | $9,000 | $39,800 | — |
Cumulative cash flow
Scenario risks
- ⚠ Thin reserve if sales cycles run long
- ⚠ Founder carries most selling
- ⚠ Little budget to absorb attrition
Higher capitalization funds a faster hiring and lead-generation ramp, which raises fixed cost before seats bill. Year-1 profit therefore does not scale with investment.
Side-by-side · all three plans
Important: This website is for informational discussion only. It is not an offer to sell or a solicitation of an offer to buy securities. All financial figures are illustrative planning assumptions, not actuals, and no returns are promised. IAMON has no disclosed customers, contracts, or traction at this stage; projections may differ materially from future results. Consult your own advisers.
Economics audit
Side by side: $50k · $100k · $150k
| Illustrative | $50,000 | $100,000 | $150,000 |
|---|---|---|---|
| Capital | $50,000 | $100,000 | $150,000 |
| Y1 revenue | $259,600 | $380,600 | $484,000 |
| Y1 operating profit | $39,800 | $46,300 | $38,000 |
| Operating margin | 15.3% | 12.2% | 7.9% |
| Profit ÷ funding (efficiency, not ROI) | 79.6% | 46.3% | 25.3% |
| Fixed cost / month | $6,750 | $9,500 | $13,000 |
| Marketing / month | $750 | $2,500 | $4,000 |
| Annual fixed + marketing | $90,000 | $144,000 | $204,000 |
| Seats M1 → M12 | 2 → 20 | 2 → 30 | 2 → 42 |
| Seat-months billed in Y1 | 118 | 173 | 220 |
| Break-even seats | 7 | 11 | 16 |
| First profitable month | M5 | M6 | M7 |
| Lowest cash in Y1 | $35,400 | $68,600 | $95,300 |
| Planned cash reserve | $20,000 | $30,000 | $40,000 |
| Y3 operating profit (base, extrapolated) | $406,800 | $574,560 | $814,620 |
Sensitivity (applies to all three plans)
Why more capital shows a lower profit ÷ funding ratio
The math, not a typo. Each seat earns the same $1,100/month contribution in every plan. Larger plans commit to higher fixed cost and marketing from month 1 ($50,000: $90,000/yr · $100,000: $144,000/yr · $150,000: $204,000/yr), while new seats arrive gradually. In Year 1 that extra cost is only partly recovered, so operating profit grows slowly — or falls — while the denominator (capital) rises. Profit ÷ funding therefore drops ($50,000 79.6% · $100,000 46.3% · $150,000 25.3%).
What $50k is good for. Lean validation: low fixed cost, fastest break-even, highest capital efficiency in Year 1 — but a thin reserve and founder-led selling, so a sales slowdown hurts quickly.
What $100k / $150k are for. Building capacity — sales hire, management layer, larger marketing — so the business can carry more seats by month 12 and beyond (see Year-3 row). The extra capital also buys a larger cash buffer against a shortfall. It does not buy proportionally higher Year-1 profit, and that capacity only pays off if sales actually arrive.
No higher returns are claimed. We have not raised larger-plan seat ramps to make the ratios look better. Use the sensitivity inputs to see what pricing, ramp or cost levels each plan would need.
Four different things — don't mix them
Company operating profit
Annual revenue minus delivery, fixed cost and marketing, for the business. Projection only.
Profit ÷ funding (efficiency)
Company operating profit divided by the capital raised. A capital-efficiency gauge — not money paid to anyone.
Investor distributions
Cash actually paid to investors. Depends on equity share, payout policy, reserves and taxes — modeled separately as hypothetical terms on the Investor Forecast page.
Investor ROI
Undefined. No investment terms (ownership, distributions, exit) exist yet, so no ROI can be stated. Capital may be lost.