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Revenue Model

Venture Studio Revenue Architecture

Proper Labs operates as a Web3 venture studio, generating returns through portfolio company value creation, incubation services, and strategic exits.

💼 Revenue Streams

Primary Revenue Sources

1. Portfolio Company Equity

  • Ownership Stakes: 15-40% equity in portfolio companies
  • Value Creation: Active involvement in growth and operations
  • Exit Strategy: Strategic sales, token launches, or acquisitions
  • Current Portfolio Value: $32M+ across 7 companies

2. Incubation Program Fees

  • Program Investment: $100K-$500K per company
  • Equity Exchange: 15-25% for incubation services
  • Success Fee: 2-5% on follow-on funding rounds
  • Service Credits: Technical resources valued at $50K+

3. Management & Advisory Fees

  • Portfolio Management: 2% annual management fee on deployed capital
  • Advisory Services: $10K-50K monthly retainers for strategic guidance
  • Technical Consulting: Development and integration services
  • Success-Based Fees: Performance bonuses on key milestones

📊 Portfolio Company Performance

Active Revenue Generators

Claimr (Live Platform)

  • Status: Revenue generating
  • Annual Revenue: $710K
  • Users: 7.4M processed
  • Organizations: 162 active
  • Growth: +63% activity, +43% retention

W3DV (Protocol)

  • Valuation: $15.2M
  • Users: 254K verified
  • Technology: BITS/BEATS recognition system
  • Integration: Powers AlphaHubs and AlphaQuests

Ver$e ID (Infrastructure)

  • Protocol Value: $17M
  • Technology: Universal identity system
  • Innovation: BITS/BEATS scoring with 12.5% guarantee
  • Target: 500K users

🎯 Revenue Model by Company

Live & Generating Revenue

CompanyStatusCurrent ValueRevenue Model
ClaimrLive$710K ARRTransaction fees, B2B contracts
W3DVActive$15.2M valuationProtocol fees, integrations
AlphaHubsActive50+ projectsPlatform fees, METIS rewards
AlphaQuestsActivePowered by ClaimrQuest fees, engagement metrics

In Development

CompanyStatusCurrent ValueProjected Model
Ver$e IDProtocol$17M infrastructureIdentity fees, verification
BroVerseBuilding$750KGaming economy, Mini App
BroFitPre-Launch$50K → $3.5M (90d)DeFi yields, TVL fees

📈 Value Creation Strategy

Incubation to Exit Pipeline

Stage 1: Incubation (0-12 weeks)

  • Initial investment: $100K-$500K
  • Technical resources and mentorship
  • Product-market fit validation
  • First customer acquisition

Stage 2: Growth (3-12 months)

  • Follow-on funding facilitation
  • Partnership development
  • Technology integration
  • User base expansion

Stage 3: Scale (1-3 years)

  • Series A/B preparation
  • Strategic acquisitions
  • International expansion
  • Token launch preparation

Stage 4: Exit (2-5 years)

  • Strategic sale to larger entity
  • Token generation event (TGE)
  • Merger with portfolio company
  • IPO or public listing

💎 Success Metrics

Portfolio Performance Indicators

  • Total Portfolio Value: $32M+
  • Active Companies: 7
  • Combined User Base: 7.4M+
  • Active Organizations: 162+
  • Average Growth Rate: +50% YoY

Return Projections

  • Target IRR: 35-50% on portfolio
  • Expected Multiple: 5-10x on successful exits
  • Success Rate: 40% of portfolio to achieve significant returns
  • Time to Exit: 2-5 years average

🚀 Competitive Advantages

Venture Studio Model Benefits

  1. Shared Infrastructure: Reduce costs across portfolio
  2. Cross-Pollination: Technologies integrate between companies
  3. Network Effects: User base portability
  4. Technical Expertise: In-house development capabilities
  5. Risk Mitigation: Diversified portfolio approach

Proven Track Record

  • Claimr: 7.4M users, profitable operations
  • W3DV: Successful protocol implementation
  • AlphaHubs: Metis partnership with 50+ projects
  • AlphaQuests: +63% activity improvement

🤝 Partnership Revenue

Strategic Collaborations

  • Metis Network: AlphaHubs implementation
  • RocketX: Bridge infrastructure partnership
  • Cookie3: Analytics integration
  • Ecosystem Grants: Protocol development funding

Service Offerings

  • White-Label Solutions: Claimr engine licensing
  • Protocol Integration: W3DV implementation services
  • Technical Consulting: Architecture and development
  • Advisory Services: Web3 strategy and tokenomics

📊 Financial Sustainability

Current Financial Position

  • Portfolio Value: $32M+ across 7 companies
  • Revenue Generating: Multiple active revenue streams
  • Burn Rate: Managed through portfolio revenues
  • Runway: Self-sustaining through portfolio performance

Growth Capital Strategy

  • Fund II Target: $10M for 20 new companies
  • LP Returns: Target 3x net returns
  • Management Fees: 2% annual on AUM
  • Carry Structure: 20% on profits above hurdle

🗺️ Future Revenue Opportunities

Expanding Revenue Streams

  • Additional portfolio company exits
  • Increased management fees from Fund II
  • Technical service expansion
  • Protocol licensing fees
  • Educational programs and workshops

Market Expansion

  • Geographic expansion to new markets
  • Sector diversification within Web3
  • Strategic partnerships with enterprises
  • Government and institutional contracts

Building sustainable value through portfolio company success and strategic venture building.