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Revenue Models

Overview​

Proper Labs operates multiple revenue streams across our portfolio companies, creating a diversified and sustainable business model. Our venture studio approach allows us to capture value at different layers of the Web3 + AI stack.

Primary Revenue Streams​

1. Transaction & Protocol Fees​

BroFit DeFi Platform

  • Model: Transaction fees on DeFi operations
  • Current: Live revenue generation from yield farming protocols
  • Target: 0.25% - 0.75% fee on all transactions
  • Scale: $200B+ DeFi market opportunity

Ver$e ID Protocol

  • Model: Identity verification fees
  • Pricing: 0.10−0.10 - 2.00 per verification
  • Target Market: Enterprises requiring KYC/AML compliance
  • Guarantee: 12.5% protocol revenue sharing with Ver$e holders

2. SaaS & Subscription Revenue​

AlphaHubs B2B Platform

Target Revenue: $75M ARR by 2026

W3DV Developer Tools

  • Model: Freemium with premium features
  • Target: Developer tools and services
  • Conversion Target: 5-10% to paid plans
  • ARPU Target: $50-200/month per paid user

3. Gaming & Engagement Revenue​

BroVerse Gaming Hub

  • In-App Purchases: Virtual goods, NFTs, premium features
  • Tournament Fees: Competition entry and prize pool management
  • Advertising: Sponsored content and brand partnerships
  • Platform: Telegram Mini App in development

AlphaQuests Engagement Platform

  • Brand Partnerships: Quest sponsorships and campaigns
  • Premium Subscriptions: Advanced quest creation tools
  • Revenue Share: Commission on quest rewards and prizes

4. Enterprise Partnerships​

Enterprise B2B Solutions

  • Model: White-label engagement solutions
  • Target Pricing: 10K−10K - 100K implementation + monthly fees
  • Focus: Enterprise loyalty and rewards programs

Revenue Model Matrix​

CompanyRevenue TypeStageTarget ARR
BroFitTransaction FeesLive$5M-15M
Ver$e IDProtocol FeesMVP$10M-25M
AlphaHubsSaaS SubscriptionsGrowth$75M
W3DVFreemium SaaSScaling$25M-50M
BroVerseGaming IAPPre-Seed$20M-40M
EnterpriseB2B SolutionsDevelopment$5M-10M
AlphaQuestsBrand PartnershipsLaunch$3M-8M
SISInfrastructure APIInternal$15M-30M

Unit Economics​

Customer Acquisition & Lifetime Value​

Ver$e ID Protocol

Key Metrics:

  • CAC: $10-50 per user
  • LTV: $500-5,000 depending on verification frequency
  • LTV/CAC Ratio: 10:1 to 100:1
  • Payback Period: 3-6 months

Portfolio Synergy Effects​

Cross-Platform User Flow

  1. User Enters: Via BroVerse gaming (low CAC)
  2. Identity Creation: VereIDonboarding(e ID onboarding (2 revenue)
  3. DeFi Engagement: BroFit yield farming (transaction fees)
  4. Developer Tools: W3DV for building (subscription revenue)
  5. Enterprise Upsell: AlphaHubs or Claimr partnerships

Synergy Multiplier: 3-5x revenue per user compared to standalone products

Growth Projections​

3-Year Revenue Forecast​

YearTotal ARRGrowth RateKey Drivers
2024$2M-Foundation + BroFit live
2025$8M300%Ver$e ID launch + BroVerse scale
2026$25M213%AlphaHubs enterprise + full portfolio
2027$75M200%Market leadership + new verticals

Revenue Breakdown by 2027​

Monetization Strategy​

Phase 1: Foundation (2024)​

  • Focus: Establish core revenue streams
  • BroFit: Transaction fee optimization
  • Claimr: Enterprise partnership expansion
  • Target: $2M ARR

Phase 2: Scale (2025)​

  • Focus: Ver$e ID protocol launch and adoption
  • BroVerse: Gaming revenue optimization
  • W3DV: Premium tier launch
  • Target: $8M ARR

Phase 3: Dominance (2026-2027)​

  • Focus: AlphaHubs enterprise market capture
  • Cross-Platform: Full ecosystem synergy
  • New Verticals: Additional portfolio companies
  • Target: $75M ARR

Investment Returns​

Venture Studio Model Advantages​

Portfolio Value Creation

  • Individual Company Exits: 50M−50M - 500M per successful exit
  • Platform Value: Shared infrastructure reduces costs by 40-60%
  • Cross-Selling: 3-5x revenue multiplier through ecosystem effects
  • Risk Mitigation: 8 companies reduce single-point-of-failure risk

Exit Strategy Options​

  1. Strategic Acquisitions: Individual companies to relevant acquirers
  2. IPO Path: Venture studio holding company public offering
  3. Token Launch: $BRO ecosystem token for portfolio value capture
  4. Private Equity: Growth capital for rapid expansion

Revenue diversification through portfolio synergy creates sustainable, scalable growth with multiple value capture mechanisms.