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
Company | Status | Current Value | Revenue Model |
---|---|---|---|
Claimr | Live | $710K ARR | Transaction fees, B2B contracts |
W3DV | Active | $15.2M valuation | Protocol fees, integrations |
AlphaHubs | Active | 50+ projects | Platform fees, METIS rewards |
AlphaQuests | Active | Powered by Claimr | Quest fees, engagement metrics |
In Development
Company | Status | Current Value | Projected Model |
---|---|---|---|
Ver$e ID | Protocol | $17M infrastructure | Identity fees, verification |
BroVerse | Building | $750K | Gaming economy, Mini App |
BroFit | Pre-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
- Shared Infrastructure: Reduce costs across portfolio
- Cross-Pollination: Technologies integrate between companies
- Network Effects: User base portability
- Technical Expertise: In-house development capabilities
- 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.