SAAUCE STUDIOS

Financial Model | Venice Beach, California

$1.25M
Raising
$5M
Pre-Money Valuation
20%
Equity
13.7x
Expected Return

Primary Comparable: Track Star (Jack Coyne)

Year 2: $2.6M revenue, 10 staff
Primary Revenue: Brand Partnerships (Beats, Rivian)
Secondary: Music Labels
Paid Appearances: $10-15K "from time to time"
Growth: 2x annually once partnerships start

Year 5 Valuation Scenarios

BASE CASE (40%)

$27M

4.3x return

TARGET CASE (45%)

$100M

16.0x return

UPSIDE CASE (15%)

$200M+

32.0x return

Expected Value (Probability-Weighted)$86M
Expected Y5 Valuation
$17.2M
Expected Investor Return

5-Year EBITDA Summary

BASE CASE - Solid Execution

	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	$974K	$1.53M	$2.14M	$3.12M	$4.76M
Costs	$1.64M	$1.84M	$2.19M	$2.22M	$2.26M
EBITDA	-$671K	-$311K	-$46K	$897K	$2.50M
Margin	-68.9%	-20.4%	-2.1%	28.7%	52.5%

TARGET CASE - Track Star Trajectory

	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	$975K	$1.83M	$3.48M	$7.06M	$13.9M
Costs	$1.64M	$1.85M	$2.21M	$2.27M	$2.34M
EBITDA	-$669K	-$18K	$1.27M	$4.80M	$11.56M
Margin	-68.6%	-1.0%	36.4%	67.9%	83.2%

UPSIDE CASE - Category Leader

	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	$980K	$2.28M	$5.59M	$13.4M	$27.0M
Costs	$1.64M	$1.87M	$2.25M	$2.31M	$2.41M
EBITDA	-$664K	$409K	$3.34M	$11.07M	$24.58M
Margin	-67.8%	18.0%	59.8%	82.7%	91.1%

Year 1 Revenue Breakdown

$974K
Year 1 Revenue
$1.64M
Year 1 Costs
-$671K
Year 1 EBITDA
Investment
Year 1 Focus

YEAR 1 REVENUE SOURCES

Source	Units	Avg Revenue	Total	% of Total
Premium Events (1200 cap)	6	$148K	$888K	91%
NYE Licensing	1	$50K	$50K	5%
Merch	1	$16K	$16K	2%
Digital/Other	-	-	$15K	2%
YouTube AdSense	-	-	$5K	0.5%
TOTAL			$974K	100%

Note: Year 1 = Building audience. Brand sponsorships, music labels, paid appearances, and studio rentals removed from Y1 projections.

Revenue Breakdown - TARGET CASE

EVENTS (Stable Cash Base)

	Year 1	Year 2	Year 3	Year 4	Year 5
Premium Events	$888K	$1.02M	$1.17M	$1.35M	$1.55M
NYE Licensing	$50K	$58K	$66K	$76K	$87K
Micro Events	$0	$25K	$50K	$75K	$100K
Studio Activations	$0	$75K	$125K	$175K	$225K
Subtotal Events	$938K	$1.18M	$1.42M	$1.68M	$1.97M

CONTENT PARTNERSHIPS (Primary Growth Driver)

	Year 1	Year 2	Year 3	Year 4	Year 5
Brand Sponsorships (65%)	$0	$290K	$1.08M	$2.93M	$6.5M
Music Label Partnerships (25%)	$0	$115K	$410K	$1.13M	$2.5M
Paid Appearances (10%)	$0	$45K	$165K	$450K	$1.0M
Subtotal Content	$0	$450K	$1.65M	$4.5M	$10.0M

	Year 1	Year 2	Year 3	Year 4	Year 5
YouTube AdSense	$6K	$32K	$108K	$302K	$756K
Licensing	$0	$25K	$100K	$300K	$750K
Merch	$16K	$30K	$50K	$80K	$150K
Digital/Other	$15K	$20K	$35K	$55K	$90K
Studio Rental	$0	$95K	$120K	$150K	$185K
Subtotal Other	$37K	$202K	$413K	$887K	$1.93M

Staffing Build

Year	Headcount	Total Cost	New Hires
Year 1	4	$350K	Founder, Ops Lead, Content Director, PT/Freelance
Year 2	6	$521K	+ Social Media Manager, Editor
Year 3	10	$856K	+ Videographer, Events Coord, Sales, Community
Year 4	10	$882K	3% raises
Year 5	10	$908K	3% raises

Use of Funds - $1.25M

TEAM (42% - $522K)

Item	Amount	% of Raise	Notes
Year 1 Staffing Gap	$222K	18%	Covers Y1 EBITDA loss
Year 2 Staffing Gap	$300K	24%	Partial Y2 loss coverage

CONTENT PRODUCTION (18% - $230K)

Item	Amount	% of Raise	Notes
Content Gap Funding	$200K	16%	Production investment
Equipment & Studio	$30K	2%	Cameras, audio, lighting

EVENTS & OPERATIONS (40% - $498K)

Item	Amount	% of Raise	Notes
Events Working Capital	$100K	8%	Pre-fund 2-3 events
Marketing & Growth	$100K	8%	Audience growth
Legal/Accounting	$50K	4%	Structure + compliance
Advisory	$50K	4%	Industry advisor
Buffer/Contingency	$198K	16%	Runway extension

Content Production Budget - $517K/Year

Format	Episodes	Cost/Unit	Annual Cost
Street Talk Show	52 (26 shoots)	$3,000/shoot	$78,000
Music Discovery	52	$1,500/ep	$78,000
Live Performance	16	$4,062/ep	$65,000
Plants & Lamps Content	12	$4,000/ep	$48,000
Plants & Lamps Live	12	$5,000/event	$60,000
BTS/Documentary	12	$2,000/ep	$24,000
Daily Social	365	$250/day	$91,250
Equipment (Y1)	1	$25,000	$25,000
Guest Fees	Annual	-	$30,000
Music Licensing	Annual	-	$12,000
Software/Subs	Annual	-	$6,000
TOTAL			$517,250

Cost Structure (All Scenarios)

Category	Year 1	Year 2	Year 3	Year 4	Year 5
Staffing	$350K	$521K	$856K	$882K	$908K
Event Production	$576K	$576K	$576K	$576K	$576K
Content Production	$517K	$517K	$517K	$517K	$517K
Brand Production	$0	$23K	$38K	$53K	$68K
Travel & Entertainment	$24K	$30K	$36K	$36K	$36K
Overhead	$112K	$112K	$112K	$112K	$112K
Advisory + Contingency	$59K	$59K	$59K	$59K	$59K
Merch COGS	$6K	$12K	$20K	$32K	$60K
TOTAL COSTS	$1.64M	$1.85M	$2.21M	$2.27M	$2.34M

Key Milestones

YEAR 1

Foundation

- 6 premium events
- 144 episodes launched
- 50K YouTube subs
- Team of 4
- Revenue: $974K

YEAR 2

First Partnerships

- Brand deals close
- 125-200K subs
- Team grows to 6
- Revenue: $1.5-2.3M
- Near breakeven

YEAR 3-5

Scale

- Formats breaking out
- 300K-4M subs
- Team reaches 10
- Y5 Rev: $4.8-27M
- Y5 EBITDA: $2.5-24.6M

Risk Factors & Mitigations

Risk Category	Risk	Mitigation
Financial	Higher staffing costs; Year 3 near breakeven in Base Case	$1.25M provides runway through profitability in all scenarios
Content	View growth slower than projected; partnerships slower to close	Multiple formats; events provide stable cash base
Operational	Scaling team 4-10 in 2 years; hiring at $80K+ in LA	Strong culture; competitive comp
Market	Music industry consolidation; platform algorithm changes	Direct artist relationships; multi-platform distribution

Cash Runway Analysis

	Year 1	Year 2	Year 3	Year 4	Year 5
BASE CASE
Starting Cash	$1.25M	$579K	$269K	$223K	$1.12M
EBITDA	-$671K	-$311K	-$46K	$897K	$2.50M
Ending Cash	$579K	$269K	$223K	$1.12M	$3.62M
TARGET CASE
Starting Cash	$1.25M	$581K	$563K	$1.83M	$6.63M
EBITDA	-$669K	-$18K	$1.27M	$4.80M	$11.56M
Ending Cash	$581K	$563K	$1.83M	$6.63M	$18.19M
UPSIDE CASE
Starting Cash	$1.25M	$586K	$995K	$4.34M	$15.41M
EBITDA	-$664K	$409K	$3.34M	$11.07M	$24.58M
Ending Cash	$586K	$995K	$4.34M	$15.41M	$39.99M

$1.25M provides comfortable runway through profitability in all scenarios

Why We'll Beat Base Case

1. Proven Execution

Already executed 1,200-person event profitably. Live Nation, Malibu Rum, Laelia partnerships in place.

2. Unfair Distribution

Venice Beach: 28,000 daily tourists. 10.2M annual foot traffic past studio.

3. Content-Event Flywheel

Events create artist relationships - content guests. Content builds audience - event ticket sales.

4. Multiple Shots on Goal

5 content formats vs single-format risk. Music Discovery (viral potential), Street Talk (Hot Ones model).

5. Building Real Team

10 people by Year 3 = operational capacity. Not dependent on founder doing everything.

6. Industry Relationships

Interscope advisor for artist access. Live Nation partnership for event scale.

Investment Thesis

Saauce Studios is building the Track Star of DJ and music culture.

Track Star hit $2.6M revenue in Year 2 with music labels as primary revenue. Saauce has the same model PLUS a $1M+ events business as stable cash base.

BASE

$27M / 4.3x

TARGET

$100M / 16.0x

UPSIDE

$200M+ / 32.0x

SAAUCE STUDIOS

SAAUCE STUDIOS

Primary Comparable: Track Star (Jack Coyne)

Year 5 Valuation Scenarios

Expected Value (Probability-Weighted)

5-Year EBITDA Summary

BASE CASE - Solid Execution

TARGET CASE - Track Star Trajectory

UPSIDE CASE - Category Leader

Year 1 Revenue Breakdown

YEAR 1 REVENUE SOURCES

Revenue Breakdown - TARGET CASE

EVENTS (Stable Cash Base)

CONTENT PARTNERSHIPS (Primary Growth Driver)

OTHER CONTENT & REVENUE

Staffing Build

Use of Funds - $1.25M

TEAM (42% - $522K)

CONTENT PRODUCTION (18% - $230K)

EVENTS & OPERATIONS (40% - $498K)

Content Production Budget - $517K/Year

Cost Structure (All Scenarios)

Key Milestones

Risk Factors & Mitigations

Cash Runway Analysis

Why We'll Beat Base Case

1. Proven Execution

2. Unfair Distribution

3. Content-Event Flywheel

4. Multiple Shots on Goal

5. Building Real Team

6. Industry Relationships

Investment Thesis