# Reconciliation Notes & Assumptions
**For internal use — do not share with investors**

## Sources Reconciled

1. `financial-model.md` — last updated November 2025
2. `investor-memo-q4.md` — dated December 2025
3. `pitch-deck-q4.md` — labeled Q4 2025

---

## Key Decisions Made

### 1. Round Size: $3.0M (not $2.5M or $3.5M)

The three docs stated $2.5M, $3.0M, and $3.5M respectively.

**Why $3.0M:** The investor memo claims 18-month runway on $2.5M, but at $195K/mo post-hire burn (from the financial model), $2.5M + $420K cash = $2.92M, which only covers ~15 months. $3.0M + $420K = $3.42M = ~17.5 months, which rounds to 18. The $3.5M figure gives 20 months — possible, but 2 of 3 docs say 18 months.

**Action needed:** Confirm the actual target raise with Alex. If the round is truly $2.5M, either the burn estimate or the runway claim needs to be revised.

### 2. Valuation Cap: $28M

Ranged from $25M to $30M across docs. Used $28M (pitch deck, the investor-facing doc) as the middle ground. At $3.0M on $28M, that's a ~10.7% implied dilution — reasonable for a seed.

### 3. ARR: $1.4M

- Oct 2025: $1.1M (financial model)
- Nov 2025: $1.2M (pitch deck) — implies ~9% MoM from Oct, below stated 18%
- Dec 2025: $1.4M (memo) — implies ~17% MoM from Nov

**Note:** The Oct → Nov step ($1.1M → $1.2M = 9% growth) doesn't match the stated 18% MoM. Either the Oct starting point was lower than $1.1M, the Nov figure was understated in the deck, or growth was lumpy. The Dec $1.4M number is the most recent and sourced from the latest doc — used as-is.

**Action needed:** Pull the actual monthly revenue from Stripe to verify the trajectory.

### 4. Team Size: 14 FTE

Financial model and pitch deck say 12; memo says 14. The memo is the newest document — likely 2 hires occurred between the docs. Used 14.

**Action needed:** Confirm current headcount.

### 5. Hiring Plan: 5 Hires (to 19 FTE)

- Financial model lists 5 specific roles but says "6 hires" in the use-of-funds table — likely a typo
- Investor memo says "5 engineers"
- Pitch deck says "4 hires"

Used 5 to match the financial model's detailed role list:
- 2x Senior backend engineer ($190K/yr each)
- 1x ML engineer ($200K/yr)
- 1x Frontend engineer ($175K/yr)
- 1x Solutions engineer ($160K/yr)

Note: The memo's AE role ($140K + commission) was dropped to match the 5-hire count and engineering-heavy framing. If sales hiring is planned, the use-of-funds split or headcount needs updating.

### 6. Enterprise ACV: $54K

Financial model says $48K; memo says $54K expanding to $72K at renewal. Used $54K as it's the more recent figure and reflects closed deal averages. The $48K may have been an earlier cohort average.

### 7. Titles

| Person | Memo Title | Deck Title | One-Pager |
|--------|-----------|------------|-----------|
| Priya Sharma | VP Engineering | CTO & Co-founder | **CTO & Co-founder** |
| Jordan Reeves | Head of Sales | Head of Growth | **Head of Growth** |

Rationale: CTO & Co-founder is the stronger signal for investors at seed. Head of Growth is broader and better reflects a seed-stage role scope.

**Action needed:** Confirm Priya's actual title — "VP Engineering" vs "CTO" is a material difference for investors evaluating founding team.

### 8. Gross Margin: 81%

Financial model says 79%; memo says 81%. Used 81% (latest). The difference is likely due to improved infrastructure costs or revenue mix shift toward higher-margin enterprise subscriptions.

### 9. Series A Milestones

Merged targets from all three docs. Used the more ambitious targets where they differed:
- $5M ARR (model + deck) over $4.5M (memo)
- 500+ paying teams (model + deck) over 450+ (memo)
- Included SOC 2 (from memo) and 10K skills (from deck)
- Included 40+ enterprise customers (from model)

---

## Numbers That Appear Only in One Document

These were included in the one-pager without modification since there was no conflicting source:

| Metric | Value | Source |
|--------|-------|--------|
| CAC payback | 4.2 months | Pitch deck |
| Soft commits | $800K | Investor memo |
| ACV expansion at renewal | $72K | Investor memo |
| TAM | $340B | Pitch deck |
| SAM | $48B | Pitch deck |
| SOM | $620M | Pitch deck |

---

## Items to Verify Before Sending

- [ ] Confirm round size with Alex ($2.5M vs $3.0M vs $3.5M)
- [ ] Confirm valuation cap ($25M vs $28M vs $30M)
- [ ] Pull actual monthly ARR from Stripe dashboard for Oct–Dec 2025
- [ ] Confirm current headcount (12 vs 14)
- [ ] Confirm Priya's title (VP Engineering vs CTO & Co-founder)
- [ ] Confirm hiring plan (4 vs 5 vs 6 hires; is AE role included?)
- [ ] Verify $800K soft commits are still active
- [ ] Update customer logos if any pilots have converted