Financial Model & Projections
Version: 0.1 | Date: February 18, 2026 | Currency: USD
1. Startup Costs (Phase 0 - Pre-Funding)
Section titled “1. Startup Costs (Phase 0 - Pre-Funding)”These are the immediate “out of pocket” costs to get the company legal and bankable.
| Category | Item | Estimated Cost | Notes |
|---|---|---|---|
| Legal | Incorporation (State Filing) | $150 - $400 | Varies by state |
| Legal | Registered Agent | $100 / yr | Essential for compliance |
| Legal | Founder Agreements | $0 - $500 | Use templates or low-cost counsel |
| Admin | Domain Name | $12 / yr | Branding |
| Admin | G-Suite / Email | $15 / mo | Professional comms |
| Tech | GitHub Team / Linear | $0 - $20 / mo | Free tiers usually suffice initially |
| Total | Launch Budget | ~$600 | Bootstrapped |
2. Operating Budget (6-Month Beta Sprint)
Section titled “2. Operating Budget (6-Month Beta Sprint)”Cost to reach the Public Beta milestone. Assumes “Sweat Equity” for founders (no salary), paying only for hard costs.
| Month | Focus | Expenses | Est. Monthly Burn |
|---|---|---|---|
| Month 1 | Foundation | Server hosting, Assets | $500 |
| Month 2 | Vertical Slice | Contractor (Concept Art) | $2,000 |
| Month 3 | Content & Mobile | Contractor (3D Model), Dev Devices | $5,000 |
| Month 4 | Polish | Sound FX Packs, UI Assets | $3,000 |
| Month 5 | Marketing | Trailer Editor, Ads, Influencer Keys | $10,000 |
| Month 6 | Launch | Server Scaling, QA Contractor | $5,000 |
| Total | 6-Month Run | ~$25,500 |
- Burn Rate: Low (~$4k/mo avg)
- Funding Source: Grants (NVIDIA, Black Ambition), Founder Capital, Friends & Family.
3. Revenue Projections (Year 1)
Section titled “3. Revenue Projections (Year 1)”Unit Price: $20.00 Platform Split: Steam/Epic takes 30%. Net per unit: $14.00.
Scenario A: Conservative (Niche Success)
Section titled “Scenario A: Conservative (Niche Success)”- Sales: 5,000 units
- Gross Revenue: $100,000
- Net Revenue (after platform cut): $70,000
- Unreal Royalty: $0 (Under $1M threshold)
- Outcome: Sustainable indie studio. Covers costs, small profit.
Scenario B: Aggressive (Viral Hit / “Best in Class”)
Section titled “Scenario B: Aggressive (Viral Hit / “Best in Class”)”- Sales: 50,000 units
- Gross Revenue: $1,000,000
- Net Revenue: $700,000
- Unreal Royalty: $0 (First $1M exempt)
- Outcome: Seed Round Trigger. Valuation jumps to $3M-$5M.
4. Exit Strategy & Valuation
Section titled “4. Exit Strategy & Valuation”We are building this to be repeatable and sellable.
Valuation Drivers
Section titled “Valuation Drivers”- IP Ownership: We own the characters, world, and code. (Must trademark).
- Tech Stack: The “Agentic Pipeline” is a proprietary asset. We sell the method of making games, not just the game.
- Community: Discord size and Email list size = valuation multiplier.
- Retention: D30 retention > 10% proves “Sticky Product”.
Potential Acquirers
Section titled “Potential Acquirers”- Publishers (Devolver, tinyBuild): Buying the game IP.
- Tech Giants (Netflix Games, Epic): Buying the team + Agentic Tech.
- Exit Goal: Acquisition at Series A stage ($10M - $20M) or sustainable cash-cow studio.
5. Funding Strategy
Section titled “5. Funding Strategy”- Bootstrapping (Months 1-3): Founders cover small costs.
- Grants (Months 3-6): Non-dilutive capital (MegaGrants, Black Ambition).
- Seed Round (Month 7+): Raise $500k - $1.5M after Beta data proves traction. Using SAFE notes or Convertible Debt.