General Economy

Business Model

Subscriptions

At it’s core, Subscription Plans are an integral component of our business and revenue generation strategy. Our Subscription Plans are divided into three broad categories:
  • Basic
  • Intermediate
  • Advanced
The Subscriptions are monthly, and will have a fee schedule as follows:
Description
2023
2024
2025
2026
2027
Basic
5
5
7
7
10
Intermediate
15
15
20
20
25
Advanced
50
50
55
55
70
Currency: USD ($)
Our current annual projections for the subscriber growth are as follows:
Description
2023
2024
2025
2026
2027
Basic
300
10000
30000
80000
120000
Intermediate
50
5000
15000
20000
30000
Advanced
10
1000
4000
10000
13000
Based on these projections, we plan to position ourselves in the market accordingly. With our excellent team of highly talented and skilled individuals, coupled with our marketing strategy, we are confident we can achieve these numbers, and our Valuation reflects the same.

Platform Commissions

We are an E-commerce company. Apart from the Monthly Subscriptions, our secondary source of revenue, will be through Platform Commissions, which will be charged as a percentage of the transaction value. We plan to offer a whole host of Tools, Widgets, and Individual Components - that are required to create a wholesome Web 3.0 experience for the users – through our platform. Since certain aspects of our platform will be Open-source, our aim is to collaborate with the best and brightest developers around the world, to create these Tools that they can then sell through our platform. We plan to make OWNverse an interactive and interconnected community, and a one-stop solution for Businesses, Developers, and Users alike.
Our projections for the Platform Commissions are as follows:
Description
Transaction Per Month
(#) of Transactions
2023 0
2024 10000
2025 25000
2026 75000
2027 100000
Avg. Transaction ($) Commission Rate
3 5%
4 7%
5 9%
6 9%
7 9%

Consulting and Partner Projects

With our pool of highly talented individuals and subject matter experts (SMEs), we aim to also generate a respectable revenue through our Consulting activities and collaborating on Partner Projects.
The revenue projections for this category are as follows:
Description
2023
2024
2025
2026
2027
Consulting
200000
240000
280000
310000
350000
Partner Projects
150000
200000
240000
280000
300000

Expensess

Salary

Being a Technology company, a significant portion of our Budget will be dedicated towards Salaries and Wages paid to Core Team members and Contractors. Since over the initial years, we plan on having a Remote Work Environment, our Rent and Property expenses will be little to none. More details with regards to Revenue and Expenses, will be shared during Investor presentations.

Miscellaneous – Other Expenses (Monthly)

Description
2023
2024
2025
2026
2027
Electricity
2000.00
2140.00
2247.00
2314.00
2383.84
Server and Technology Costs
3000.00
7000.00
9000.00
3000.00
3090.00
Legal
4000.00
4280.00
4494.00
4628.82
4767.68
Insurance
1000.00
1070.00
1123.50
1157.21
1191.92
Data Security
500.00
535.00
561.75
578.60
595.96
Office Rent
2000.00
2140.00
2247.00
2314.41
2383.84

Financial Modeling Assumptions

Financing Structure

Description
Amount
Cost of Capital
Term (Yrs.)
Commercial Loan
0
0
0
Debt
0
0
0
Equity
2,500,000
25%
5

Macro-economic

Our Macro-economic projections are as follows:
Description
2023
2024
2025
2026
2027
Inflation
7%
5%
3%
3%
3%
Interest Rate Expectations (US10Y)
4%
3.25%
2.50%
2.50%
2.50%
Economic Expectations
Recession
Recovery
Expansion
Steady
Steady

Tax Rate (US)

Text
2023
2024
2025
2026
2027
Taxes
30.00%
30.00%
30.00%
30.00%
30.00%
Federal
21%
21%
21%
21%
21%
State
9%
9%
9%
9%
9%

Human Resources

Core Team
2023
2024
2025
2026
2027
CEO
1
1
1
1
1
CMO
1
1
1
1
1
CTO
1
1
1
1
1
Project Owner
0
1
1
1
1
Art Director
0
1
1
1
1
DevOps
0
0
1
1
1
Community Manager
0.5
1
1
1
1
Project Manager
0
1
1
1
1
Team Lead
1
1
1
1
1
Frontend Developer
0
1
2
2
2
3D Engineer
0
1
2
2
2
Backend Developer
0
1
2
2
2
3D Generalist
0
0
1
1
1
3D Technical Artist
0
0
1
1
1
QA and Testers
1
1
1
1
1
Marketing Analyst
0
0
1
1
1
HR Manager
0
0.5
1
1
1
Finance Manager
0.5
0.5
1
1
1
Total Employees
6
13
21
21
21

Valuation Methodology

Free Cash Flow to Equity (FCFE)

Free cash flow to equity is a measure of how much cash is available to the equity shareholders of a company after all expenses, reinvestment, and debt are paid. FCFE is a measure of equity capital usage.
Free cash flow to equity is composed of net income, capital expenditures, working capital, and debt. Net income is located on the company income statement. Capital expenditures can be found within the cash flows from the investing section on the cash flow statement. Working capital is also found on the cash flow statement; however, it is in the cash flows from the operations section. In general, working capital represents the difference between the company’s most current assets and liabilities.
These are short-term capital requirements related to immediate operations. Net borrowings can also be found on the cash flow statement in the cash flows from financing section. It is important to remember that interest expense is already included in net income, so you do not need to add back interest expense.

The Formula for FCFE

FCFE = Cash From Operations – Capex + Net Debt Issued

Cost of Capital (Rough Estimate) Valuation

10%
15%
20%
25%
49,566,705.53
39,443,326.18
31,663,502.07
25,620,328.43

Weighted Average Cost of Capital (WACC) Valuation

8%
12%
18%
22%
55,099,316.69
45,788,992.28
35,081,563.16
29,576,175.03

Discount Rate (Analytical Estimate)

Discount Rate Assumptions
Risk Premiums
Risk-free Rate
4%
Beta
4.00
Growth Rate
2%
Country
0.00%
Discount Rate
33.20%
Sector
16.96%
Company
5.00%
Equity
4.24%
Regulatory
3.00%
Country: USA

FCFE Valuation (Analytical)

FCFE Valuation
18,380,451.85
Currency: USD

Fund Raising Targets for Round #1:

Valuation
FCFE Valuation
18,380,451.85
Cap Raise Target
2,781,480.00
% Equity To Be Offered
15.13%