Business plan - kompletní strategie

# Business Plan: TimeFlow - Time Tracking SaaS pro Freelancery

## 1. Executive Summary

**Elevator Pitch:**
TimeFlow je AI-powered time tracking platforma speciálně navržená pro freelance designery a developery v EU. Řešíme problém nepřesného trackování času a nedostatečné visibility do projektové ziskovosti, což stojí průměrného freelancera €5,000+ ročně v nenaúčtovaných hodinách. Naše řešení kombinuje automatické time tracking s AI-powered project insights a invoicing, čímž zvyšujeme billing accuracy o 40% a snižujeme administrativní overhead o 60%.

**Key Metrics:**
- TAM: €1.2B (500K EU freelancery × €200/měsíc × 12)
- Current MRR: €15K (150 paying customers)
- Monthly Growth: 25% MoM
- Churn Rate: 3.2% (industry avg 5-7%)
- CAC/LTV Ratio: 1:4.5

**The Ask:**
Hledáme €200K seed investment pro:
- Product development (40%): AI features, mobile app
- Sales & Marketing (35%): content marketing, paid acquisition
- Operations (15%): customer success, infrastructure
- Working capital (10%): 6-month runway buffer

Expected Outcomes: 500 customers, €50K MRR, break-even by month 18.

---

## 2. Problem & Solution

**The Problem:**

Freelancery v EU čelí třem kritickým výzvám při time trackingu:

**Problem #1: Manual Time Entry is Broken**
- Průměrný freelancer zapomíná zaznamenat 15-20% svojí práce
- Post-hoc time entry je nepřesný (memory bias)
- Kontextové přepínání mezi projekty je špatně trackovatelné
- **Cost:** €3,000-7,000/rok v nenaúčtovaných hodinách per freelancer

**Problem #2: No Project Profitability Insights**
- 68% freelancerů neví, které projekty jsou skutečně ziskové
- Hidden time sinks (meetings, revisions) nejsou viditelné
- Client profitability analysis je manuální nightmare
- **Cost:** Accepting unprofitable work, burning out on low-margin clients

**Problem #3: Invoice Generation is Time-Consuming**
- Průměrně 3-4 hodiny měsíčně na invoice creation
- Manual export z time tracker → spreadsheet → invoice tool
- Chybovost v pricing a tax calculations (especially cross-border)
- **Cost:** Administrative overhead + billing errors

**Market Validation:**
Provedli jsme 120 customer discovery interviews s EU freelancery:
- 94% používá nějaký time tracking tool (RescueTime, Toggl, Clockify)
- 72% je nespokojeno s current solution
- Top pain points: "zapomínám trackovat" (81%), "žádné project insights" (67%), "invoicing je separate tool" (89%)

**The Solution:**

TimeFlow je all-in-one platforma s třemi pilíři:

**1. Automatic Time Tracking**
- Desktop + browser app tracks active work automatically
- AI detects project context from window titles, URLs, Git commits
- Manual override + categorization rules for accuracy
- Privacy-first: žádné screenshots, jen app/URL metadata

**2. AI-Powered Project Insights**
Dashboard s real-time analytics:
- Project profitability by hour rate vs. actual time spent
- Client health score (communication overhead, revision frequency)
- Time distribution heatmap (billable vs. admin vs. marketing)
- Predictive alerts ("Project X trending 20% over estimate")

**3. One-Click Invoicing**
- Generate invoice directly from tracked time
- Multi-currency + EU VAT compliance built-in
- Custom branding + payment links (Stripe/PayPal integration)
- Recurring invoices + payment reminders

**Competitive Advantage:**

vs. Toggl/Clockify: They are generic time trackers. We are freelancer-specific with project profitability insights.

vs. Harvest: Better automatic tracking + AI insights. Harvest is still heavily manual.

vs. RescueTime: They track productivity. We track billable work + generate invoices.

**Our Moat:**
- EU-first compliance (GDPR, VAT handling, multi-currency)
- Freelancer-specific workflow (not adapted from corporate time tracking)
- AI project insights engine (proprietary algorithm, 2 years of training data)

---

## 3. Market Analysis

**TAM/SAM/SOM:**

**Total Addressable Market (TAM):** €1.2B
- 500,000 freelance designers + developers in EU
- Average willingness to pay: €20/month (based on surveys)
- €20 × 500K × 12 = €120M annually
- 10-year market (assuming SaaS multiples) = €1.2B

**Serviceable Addressable Market (SAM):** €240M
- Focus on freelancers earning €40K+/year (premium segment)
- 200,000 target freelancers in DE, FR, UK, NL, SE, PL
- Higher ARPU: €100/month (team plans, advanced features)
- €100 × 200K × 12 = €2.4B over 10 years

**Serviceable Obtainable Market (SOM - Year 3):** €18M
- Realistic 3% market penetration by year 3
- 6,000 paying customers
- ARPU €100/month blended (€50 solo, €200 team plans)
- €100 × 6K × 12 = €7.2M ARR
- 10-year projection = €72M, discounted to €18M NPV

**Market Trends:**

**Trend #1: Freelance Economy is Booming**
- EU freelance workforce grew 23% (2019-2023)
- Post-COVID shift: 34% more remote workers exploring freelancing
- Projection: 1M+ EU freelancers by 2027

**Trend #2: Tool Consolidation**
- Freelancers use average 8.4 SaaS tools (study: Freelancing in Europe 2023)
- Willingness to pay 30% premium for all-in-one solutions
- Our positioning: "Replace Toggl + Harvest + FreshBooks with TimeFlow"

**Trend #3: AI-First Workflows**
- 76% freelancers interested in AI assistance for admin tasks
- Early adopters willing to pay 2x for AI features
- Our AI insights = key differentiator

**Competitor Landscape:**

| Competitor | Strengths | Weaknesses | Market Share |
|------------|-----------|------------|--------------|
| **Toggl** | Strong brand, simple UX | Generic (not freelancer-focused), no AI | 35% |
| **Harvest** | Invoicing built-in | Manual time entry, outdated UI | 20% |
| **Clockify** | Free tier | Basic features, poor insights | 15% |
| **RescueTime** | Automatic tracking | Productivity focus, no invoicing | 10% |
| **TimeFlow (us)** | Freelancer-specific, AI insights, all-in-one | Early stage, brand recognition | <1% |

**Competitive Strategy:**
- Position as "premium Toggl alternative for serious freelancers"
- Undercut Harvest on price (€20 vs. their €30) while offering better auto-tracking
- Out-innovate on AI features (Toggl/Harvest have no AI roadmap)

---

## 4. Product/Service

**Core Features (v1.0 - Current):**

**Time Tracking Engine:**
- Desktop apps: macOS, Windows, Linux (Electron)
- Browser extension: Chrome, Firefox, Safari
- Automatic tracking: app/URL monitoring with 5-min idle detection
- Manual entry: drag-and-drop timers, bulk edit
- Project/task hierarchy: Client > Project > Task structure
- Tags + notes: custom categorization

**Dashboard & Insights:**
- Time distribution: billable vs. non-billable breakdown
- Project list: active projects with total hours + earnings
- Weekly report: hours by client, billable rate achievement
- Calendar view: daily time heatmap

**Invoicing:**
- Invoice generation from tracked time
- Custom branding: logo, colors, terms
- Multi-currency: EUR, USD, GBP, SEK, PLN (+ auto conversion)
- Payment links: Stripe, PayPal integration
- PDF export + email sending

**Product Roadmap (Next 18 Months):**

**Q2 2026: AI Insights Engine v1**
- Project profitability score (actual time vs. estimate vs. revenue)
- Client health score (response time, revision frequency)
- Workload balance alerts ("overbooked next week")
- Smart project estimates (ML-based on historical data)

**Q3 2026: Mobile Apps**
- iOS + Android native apps
- Quick timer start/stop
- Voice notes for time entries
- Push notifications for running timers

**Q4 2026: Team Features**
- Multi-user accounts (for freelance teams, agencies)
- Team dashboard: cross-team time visibility
- Client portal: let clients see project progress
- Role-based permissions

**Q1 2027: Advanced Integrations**
- Notion, Asana, Trello sync (auto-start timers from tasks)
- Slack integration (timer control via slash commands)
- API access for custom integrations
- Zapier support

**Q2 2027: Expense Tracking + Profit Dashboard**
- Expense logging (tools, subscriptions, travel)
- True profit calculation (revenue - time cost - expenses)
- Tax estimation (EU country-specific)
- Accountant export (DATEV, CSV)

**Technology Stack:**

**Frontend:**
- Web: React 18, TypeScript, TailwindCSS
- Desktop: Electron with native modules
- Mobile: React Native (code sharing with web)

**Backend:**
- Node.js (Express) + PostgreSQL
- Redis (caching, job queue)
- Hosted: AWS (Frankfurt region for EU data residency)

**AI/ML:**
- Project insights: Python (scikit-learn, time series forecasting)
- Context detection: rule-based engine + NLP (spaCy)
- Hosted: Separate Python service (FastAPI)

**Monitoring:**
- Sentry (error tracking)
- Mixpanel (product analytics)
- Datadog (infrastructure monitoring)

**IP & Moat:**

- **Proprietary Algorithm:** AI project profitability scoring engine (trained on 2 years of anonymized data from beta users)
- **Data Moat:** More customers = better AI predictions (network effect)
- **Brand:** "TimeFlow" trademark filed in EU

---

## 5. Business Model

**Revenue Streams:**

**Primary: Subscription SaaS (95% of revenue)**

| Plan | Price | Target | Features |
|------|-------|--------|----------|
| **Starter** | €10/mo | New freelancers | Basic time tracking, 5 clients, 20 projects |
| **Professional** | €25/mo | Established freelancers | Unlimited projects, AI insights, invoicing |
| **Team** | €60/mo (up to 5 users) | Freelance teams | Multi-user, client portal, team dashboard |

**Current Distribution:**
- Starter: 40 customers (27%)
- Professional: 95 customers (63%)
- Team: 15 customers (10%)
- Avg ARPU: €100/month blended

**Secondary: Add-Ons (5% of revenue)**

- White-label invoicing: €10/mo (remove TimeFlow branding)
- Priority support: €20/mo (24h response SLA)
- Advanced integrations: €15/mo (Notion, Asana, Slack)

**Pricing Strategy:**

**Positioning:** Premium but accessible
- Lower than enterprise tools (Harvest €30/mo, FreshBooks €35/mo)
- Higher than basic trackers (Toggl €10/mo, Clockify free)
- Value prop: "All-in-one solution = save money vs. 3 separate tools"

**Monetization Levers:**
- Upsell Starter → Professional (conversion rate currently 35%)
- Add-on attach rate target: 20% of Professional customers
- Team plan growth (agencies, freelance collectives)

**Unit Economics:**

**Per Customer (Professional Plan):**
- ARPU: €25/month
- LTV: €900 (36-month retention average, 3% churn)
- CAC: €200 (blended paid + organic)
- CAC/LTV Ratio: 1:4.5 ✅ (healthy for SaaS)
- Payback Period: 8 months

**Cost Structure:**
- Hosting (AWS): €2/customer/month
- Support: €3/customer/month (0.5 FTE support at 150 customers)
- Processing fees (Stripe): €0.75/customer/month (3% of €25)
- Total COGS: €5.75/customer/month
- **Gross Margin: 77%** (industry standard 70-80%)

**Break-Even Analysis:**
- Fixed costs: €15K/month (team salaries, office, tools)
- Contribution margin: €19.25/customer (€25 - €5.75)
- Break-even: 780 customers (€15K ÷ €19.25)
- Current: 150 customers → need 5.2x growth to break even
- Target: Month 18 (at 25% MoM growth)

---

## 6. Go-to-Market Strategy

**Customer Acquisition Channels:**

**Channel #1: Content Marketing (40% of customers)**

**Strategy:** Become the #1 resource for freelance business knowledge
- Blog: 2 posts/week (freelancing tips, time management, pricing strategies)
- SEO targets: "how to price freelance work", "best time tracking for freelancers"
- Current traction: 15K organic visits/month, 8% conversion to trial

**Execution Plan:**
- Hire content writer (€3K/month)
- Guest posts on freelance blogs (Smashing Magazine, Freelancers Union)
- YouTube channel: "Freelance Business Masterclass" series

**Channel #2: Paid Acquisition (30% of customers)**

**Current Channels:**
- Google Ads: €5K/month spend, €150 CAC, 35 customers/month
- Facebook/Instagram: €3K/month, €200 CAC, 15 customers/month
- LinkedIn Ads: €2K/month, €250 CAC, 8 customers/month

**Optimization Plan:**
- A/B test ad creatives (current: generic "track your time" → test: "bill 40% more hours")
- Retargeting: blog visitors → 14-day free trial offer
- Lookalike audiences from best customers (Professional plan, low churn)

**Channel #3: Partnerships (20% of customers)**

**Partner Types:**
- Freelance communities: Toptal, Upwork, Fiverr forums
- Accounting software: Referral deals with Debitoor, Lexoffice (Germany)
- Coworking spaces: Partnerships with WeWork, Factory Berlin

**Current Traction:**
- Partnership with Freelancers Union (10K members) → 500 referrals in 6 months
- Co-marketing with Debitoor → guest webinar (200 attendees, 25 signups)

**Expansion Plan:**
- 10 partnerships by end of year
- Revenue share: 20% recurring for 12 months

**Channel #4: Product-Led Growth (10% of customers)**

**Viral Loops:**
- Referral program: "Invite a friend, both get 1 month free"
- Public project pages: let freelancers share project stats (portfolio piece)
- Invoice branding: "Created with TimeFlow" footer on free invoices

**Current Traction:**
- Referral program: 8% of users send invites, 15% conversion rate
- K-factor: 0.12 (need 1.0+ for viral growth, but good complement to paid)

**Sales Process:**

**For Solo/Professional (Self-Serve):**
1. Landing page visit
2. 14-day free trial (no credit card required)
3. Onboarding email sequence (days 1, 3, 7, 14)
4. In-app prompts: "Add your first client", "Track 1 hour", "Generate invoice"
5. Trial-to-paid conversion: 18% (industry avg 10-15%)

**For Team Plans (Sales-Assisted):**
1. Demo request (calendar booking)
2. 30-min product demo (founder-led currently)
3. Custom proposal + pricing (discounts for annual)
4. 30-day trial with dedicated onboarding
5. Close rate: 35%

**Marketing Budget Allocation (Year 1 - Post-Funding):**

- Content marketing: €40K (writer, tools, design)
- Paid ads: €120K (Google, Facebook, LinkedIn)
- Partnerships: €20K (co-marketing, events)
- Brand/PR: €15K (PR agency, case studies)
- Tools/Stack: €10K (Mixpanel, Mailchimp, HubSpot)
- Total: €205K (35% of €600K post-funding budget)

**Customer Retention Strategy:**

**Onboarding:**
- Day 1: Welcome email + setup checklist
- Day 3: "Track your first project" tutorial
- Day 7: Webinar invite ("Maximizing TimeFlow for Profitability")
- Day 14: Personal check-in from founder

**Ongoing Engagement:**
- Monthly newsletter: new features, tips, customer spotlights
- Quarterly webinars: advanced features, guest speakers
- In-app: NPS surveys, feature requests

**Churn Prevention:**
- At-risk detection: no activity for 7 days → automated re-engagement email
- Cancellation flow: exit survey + downgrade offer (Starter plan)
- Win-back campaign: churned users after 90 days

---

## 7. Traction & Milestones

**Current Traction (Month 14 since launch):**

**Revenue:**
- MRR: €15K (150 paying customers)
- Monthly growth: 25% MoM (last 6 months)
- Churn: 3.2% monthly (excellent for early-stage SaaS)
- Annual run rate: €180K

**Customers:**
- Total users: 850 (includes 700 free trial users)
- Conversion rate: 18% (trial → paid)
- Avg time to convert: 8 days into 14-day trial
- Customer breakdown: 72% Germany, 15% France, 13% other EU

**Product:**
- 42 feature releases since launch
- Mobile app beta: 200 testers, 4.6★ rating (TestFlight)
- Uptime: 99.7% (SLA target 99.5%)

**Team:**
- 3 co-founders (CEO, CTO, CPO)
- 2 contractors (designer, content writer)
- 5 FTE equivalents total

**Key Milestones Achieved:**

✅ **Month 1-3:** MVP launch
- Basic time tracking + manual invoicing
- 50 beta users from founder network

✅ **Month 4-6:** Product-market fit signals
- Paying customer #1
- 15% MoM growth
- First organic sign-ups (SEO starting to work)

✅ **Month 7-9:** Growth acceleration
- €10K MRR milestone
- Hired first contractor (designer)
- Won "Best New SaaS" at EU Startup Awards

✅ **Month 10-12:** Scaling begins
- 25% MoM growth rate
- Partnership with Freelancers Union
- Mobile app development started

✅ **Month 13-14:** Fundraising mode
- €15K MRR
- Investor meetings (this deck!)
- Content marketing hitting 15K monthly visitors

**12-Month Roadmap (Post-Funding):**

**Q2 2026 (Months 15-17):**
- Launch AI Insights Engine v1
- Target: 300 customers, €30K MRR
- Hire: Full-time content marketer

**Q3 2026 (Months 18-20):**
- Mobile app public launch (iOS + Android)
- Target: 500 customers, €50K MRR (break-even!)
- Hire: Customer success manager, junior developer

**Q4 2026 (Months 21-23):**
- Team plan launch
- Target: 800 customers, €80K MRR
- Hire: Sales lead (for Team plan outreach)

**Q1 2027 (Month 24):**
- 1,000 customers, €100K MRR
- Series A discussions
- International expansion (UK, Spain, Italy)

**Key Metrics to Track:**

| Metric | Current | 6 Months | 12 Months |
|--------|---------|----------|-----------|
| MRR | €15K | €40K | €100K |
| Customers | 150 | 400 | 1,000 |
| CAC | €200 | €180 | €150 |
| LTV | €900 | €1,000 | €1,200 |
| Churn | 3.2% | 2.8% | 2.5% |
| NPS | 58 | 65 | 70 |

---

## 8. Financial Projections

**3-Year P&L Projection:**

| Line Item | Year 1 | Year 2 | Year 3 |
|-----------|--------|--------|--------|
| **Revenue** | | | |
| Subscriptions | €600K | €1.8M | €4.2M |
| Add-ons | €30K | €120K | €300K |
| **Total Revenue** | **€630K** | **€1.92M** | **€4.5M** |
| | | | |
| **COGS** | | | |
| Hosting | €72K | €180K | €360K |
| Support | €36K | €96K | €180K |
| Processing fees | €18K | €54K | €126K |
| **Total COGS** | **€126K** | **€330K** | **€666K** |
| | | | |
| **Gross Profit** | **€504K** | **€1.59M** | **€3.83M** |
| **Gross Margin** | **80%** | **83%** | **85%** |
| | | | |
| **Operating Expenses** | | | |
| R&D (salaries) | €250K | €450K | €750K |
| Sales & Marketing | €205K | €480K | €900K |
| G&A | €80K | €150K | €280K |
| **Total OpEx** | **€535K** | **€1.08M** | **€1.93M** |
| | | | |
| **EBITDA** | **-€31K** | **€510K** | **€1.9M** |
| **EBITDA Margin** | **-5%** | **27%** | **42%** |

**Key Assumptions:**

- Revenue: 25% MoM growth Year 1, tapering to 15% MoM Year 2-3
- ARPU: €100/month blended (mix of Starter, Professional, Team plans)
- Churn: 3% monthly (improving to 2.5% by Year 3)
- CAC: €200 → €150 (scaling efficiency)
- Team: Grow from 5 FTE to 25 FTE over 3 years

**Cash Flow Projection:**

**Year 1:**
- Starting cash (post-funding): €200K
- Revenue: €630K
- Expenses: €661K (COGS + OpEx)
- Net: -€31K
- Ending cash: €169K ✅ (runway preserved)

**Year 2:**
- Starting cash: €169K
- Revenue: €1.92M
- Expenses: €1.41M
- Net: +€510K
- Ending cash: €679K ✅ (profitable!)

**Year 3:**
- Starting cash: €679K
- Revenue: €4.5M
- Expenses: €2.6M
- Net: +€1.9M
- Ending cash: €2.58M ✅ (Series A war chest)

**Break-Even Analysis:**

- Fixed costs: €535K annually (Year 1)
- Contribution margin: €231/customer/year (€504K gross profit ÷ 2,180 avg customers)
- Break-even: 2,316 customers
- At 25% MoM growth: Month 18 (middle of Year 2) ✅

**Sensitivity Analysis:**

**Scenario: Growth Slows to 15% MoM**
- Year 1 revenue: €450K (vs. €630K baseline)
- EBITDA: -€185K (vs. -€31K baseline)
- Break-even pushed to Month 24
- **Mitigation:** Cut marketing spend, extend runway with bridge round

**Scenario: Churn Increases to 5%**
- LTV drops to €600 (vs. €900 baseline)
- CAC/LTV ratio: 1:3 (vs. 1:4.5 baseline) — still viable
- Year 3 revenue: €3.2M (vs. €4.5M baseline)
- **Mitigation:** Invest in customer success, improve onboarding

**Scenario: CAC Increases to €300**
- Payback period: 13 months (vs. 8 months baseline)
- Need to cut growth rate to preserve cash
- **Mitigation:** Double down on organic (content, SEO), cut paid ads

---

## 9. Team

**Founding Team:**

**Markéta Nováková - CEO & Co-Founder**
- Background: 8 years freelance UX designer, ran €200K/year solo consultancy
- Previous: UX lead at Avast (5 years), worked on freemium SaaS (40M users)
- Skills: Product strategy, customer development, fundraising
- Why TimeFlow: "I built this tool because I needed it — lost €10K+ to poor time tracking"

**Jan Procházka - CTO & Co-Founder**
- Background: Senior full-stack engineer, 12 years experience
- Previous: Tech lead at Rohlík.cz (Czech unicorn), built logistics platform
- Skills: System architecture, scalable backend, team leadership
- Why TimeFlow: "Passionate about dev tools for knowledge workers — this is Stripe for freelancer ops"

**Petra Svobodová - CPO & Co-Founder**
- Background: Product manager at ProductBoard (Series D startup), 6 years PM experience
- Previous: Built AI-powered roadmap tool (acquired by ProductBoard)
- Skills: Product discovery, AI/ML integration, user research
- Why TimeFlow: "AI can eliminate 80% of freelance admin work — starting with time tracking"

**Team Dynamics:**
- Working together 2+ years (knew each other from Prague startup scene)
- Equity split: 35% CEO, 35% CTO, 30% CPO (all vested over 4 years)
- Full-time commitment since Month 1

**Extended Team (Contractors):**

**Laura Müller - Senior Designer**
- Background: Design lead at Pitch (presentation tool)
- Part-time: 20h/week, equity option
- Responsible for: UI/UX, brand identity, marketing assets

**Thomas Bergmann - Content Writer**
- Background: Freelance writer specializing in SaaS/productivity
- Part-time: 15h/week
- Responsible for: Blog content, email sequences, landing pages

**Key Hires (Next 12 Months):**

**Month 3-4 (Post-Funding):**
- Full-stack developer (€60K/year) - Accelerate mobile app development
- Content marketer (€50K/year) - Scale blog from 2 → 5 posts/week

**Month 6-8:**
- Customer success manager (€45K/year) - Onboarding, support, churn prevention
- Junior developer (€40K/year) - Bug fixes, maintenance, integrations

**Month 9-12:**
- Sales lead (€55K + commission) - Drive Team plan adoption
- DevOps engineer (contractor, €500/day) - Scale infrastructure for 10x growth

**Advisors:**

**Martin Böhm - Growth Advisor**
- Background: VP Growth at Productboard, scaled from €1M → €50M ARR
- Equity: 0.5%, quarterly calls
- Focus: Growth strategy, fundraising intros

**Dr. Anna Schmidt - AI/ML Advisor**
- Background: AI researcher at TU Munich, 15 publications on time series forecasting
- Equity: 0.25%, ad-hoc consultations
- Focus: AI insights engine, predictive algorithms

**Board Composition:**

Currently:
- 3 founders (100% board control)

Post-Funding:
- 3 founders + 1 investor observer seat (VC partner from lead investor)
- Board meetings: monthly during first 12 months, quarterly thereafter

**Organizational Structure (Post-Funding, Month 12):**

```
CEO (Markéta)
├─ CTO (Jan) → 2 developers + 1 DevOps contractor
├─ CPO (Petra) → Designer (Laura)
├─ Head of Growth → Content marketer
├─ Customer Success Manager
└─ Sales Lead (to be hired)
```

Total: 10 FTE by Month 12, 15 FTE by Month 18.

---

## 10. The Ask & Use of Funds

**Investment Ask: €200,000 Seed Round**

**Deal Terms:**
- Security: SAFE (Simple Agreement for Future Equity) or priced round
- Valuation cap: €2M (10% dilution at cap)
- Discount: 20% (if converting at Series A)
- Pro-rata rights: Yes (investors can participate in next round)

**Why This Amount:**
- 18-month runway to break-even (€535K annual burn + €200K starting = 22 months, buffer included)
- Enough to hit key milestones (500 customers, €50K MRR) before Series A
- Validates traction for follow-on round (€1-2M Series A in 18 months)

**Use of Funds:**

| Category | Amount | % | Purpose |
|----------|--------|---|---------|
| **Product Development** | €80K | 40% | AI insights engine, mobile app, integrations |
| **Sales & Marketing** | €70K | 35% | Content marketing (€40K), paid ads (€30K) |
| **Operations** | €30K | 15% | Customer success, tools, infrastructure |
| **Working Capital** | €20K | 10% | 6-month buffer, unexpected expenses |
| **Total** | **€200K** | **100%** | |

**Detailed Allocation:**

**Product Development (€80K):**
- Developer salaries: €60K (1 full-stack, 1 junior, 12 months)
- AI/ML development: €10K (data labeling, model training, advisor fees)
- Design contractor: €10K (UI/UX for new features, mobile app)

**Sales & Marketing (€70K):**
- Content marketer salary: €40K (12 months)
- Paid ads: €30K (€2.5K/month Google/Facebook/LinkedIn)

**Operations (€30K):**
- Customer success manager: €25K (6 months salary, hire in Month 6)
- Tools & software: €5K (Mixpanel, HubSpot, AWS credits)

**Working Capital (€20K):**
- Emergency fund for unforeseen expenses
- Bridge to break-even if growth is slightly slower than projected

**Milestones Unlocked by This Investment:**

**Month 6:** €30K MRR, 300 customers
- AI insights engine launched
- Content marketing at 25K monthly visitors
- Break-even in sight

**Month 12:** €50K MRR, 500 customers
- Mobile app live (iOS + Android)
- Break-even achieved (cash flow positive)
- 5 key partnerships secured

**Month 18:** €100K MRR, 1,000 customers
- Team plan contributing 20% of revenue
- Series A raise discussions ($2-3M round)
- International expansion starting

**Expected Outcomes for Investors:**

**Base Case (25% MoM growth):**
- 18 months: €100K MRR, 1,000 customers
- Series A valuation: €10-15M (10x revenue multiple)
- Investor return: 5-7.5x on €200K (if fully diluted at 10%)

**Bull Case (30% MoM growth + strong Team plan adoption):**
- 18 months: €150K MRR, 1,500 customers
- Series A valuation: €20M
- Investor return: 10x on €200K

**Bear Case (15% MoM growth, higher churn):**
- 24 months to break-even
- May need bridge round (€100K) before Series A
- Series A valuation: €6-8M
- Investor return: 3-4x on €200K

**Why Now:**
- Freelance economy growing 20%+ annually (macro tailwind)
- Incumbents (Toggl, Harvest) not innovating (no AI roadmap)
- We have strong PMF signals (18% trial conversion, 3.2% churn, 58 NPS)
- Team execution: 14 months from idea to €15K MRR with <€50K invested

**Why Us:**
- **Founder-market fit:** We are the customer (Markéta lost €10K+ before building this)
- **Traction:** €15K MRR, 25% MoM growth, low churn
- **Product moat:** AI insights engine (2 years of training data, network effect)
- **Team:** Proven operators from Avast, Rohlík, ProductBoard (Czech tech leaders)

**Contact:**
Markéta Nováková, CEO
[email protected] | +420 777 123 456
Deck: timeflow.eu/deck

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**Appendix:**

- Customer testimonials (10 quotes)
- Press mentions (TechCrunch, Freelance Europe Magazine)
- Product screenshots
- Detailed financial model (Excel)
- Cap table & vesting schedules