Deal Structure & Unit Economics
For the pricing overview and business model summary, see Pricing & Business Model.
4. Enterprise Deal Structure
Target Annual Contract Value
~$250K ACV as the standard enterprise entry point, structured to land within VP-level budget approval authority ($50K-$250K) for faster decision cycles.
Typical Deal Composition
| Component | Pilot Phase (6-8 weeks) | Full Deployment (Annual) |
|---|---|---|
| Seat licenses | 25-50 seats at Enterprise tier | 100-500 seats |
| Platform/deployment fee | Included in pilot fee | $100,000-$200,000 (for on-prem/VPC) |
| Professional services | $25,000-$75,000 (implementation) | Ongoing support contract |
| Training | 1-2 cohorts ($5,000-$10,000) | 5-10 cohorts ($25,000-$50,000) |
| Pilot ACV | $50,000-$150,000 | -- |
| Full deployment ACV | -- | $250,000-$750,000 |
Pilot-to-Paid Conversion Model
Structured paid pilots convert at significantly higher rates than free trials:
- Pilot fee: 10-30% of projected ACV. 100% credited toward full contract upon conversion.
- Fixed timeline: 6-8 weeks with pre-defined, quantitative success criteria.
- Dedicated success resource: Weekly check-ins, progress reporting, and assistance getting teams into production use (not sandbox).
- Conversion: ROI analysis built from pilot data. Multi-year discount offered at conversion (15% for 2 years, 25% for 3 years).
Expected conversion rate: 40-60% for structured paid pilots, versus under 10% for unstructured free trials. Pilots with predefined success criteria convert 3.2x more frequently.
Volume Discount Framework
| Seat Count | Discount Off List Price |
|---|---|
| 1-100 | List price |
| 101-500 | 10-15% |
| 501-2,000 | 20-30% |
| 2,001-5,000 | 30-40% |
| 5,000+ | Custom (40-50% for strategic accounts) |
Floor price: $35/user/month. Below that threshold, pricing signals "commodity" rather than "strategic platform."
Multi-Year Contract Incentives
| Commitment | Additional Discount | Enterprise Benefit |
|---|---|---|
| Annual (standard) | List price (13-15% off monthly) | Predictable budgeting |
| 2-year commitment | 10-15% off annual price | Price protection (no increases) |
| 3-year commitment | 15-25% off annual price | Locked pricing + dedicated CSM |
Enterprise Contract Inclusions
- SLA commitments: 99.9% uptime with uptime credits
- Data processing agreements (GDPR, SOC 2)
- IP indemnification for AI-generated code
- Audit rights for vendor compliance
- Data portability and exit provisions
- Custom security requirements
On-Premises & Dedicated Deployment Pricing
The $250K ACV target for initial enterprise deals represents a conservative land-and-expand entry point. A fully deployed regulated-industry deal at 500+ developers reaches $670K-$880K, with expansion potential as additional teams adopt the platform. This validates the path from 3 enterprise clients at $250K to $2M+ ARR as teams scale.
Estimated Costs: 500-Developer Regulated Enterprise Deployment
| Component | Estimated Annual Cost |
|---|---|
| Platform licence (500 seats x Enterprise tier) | $500K-$600K |
| AI compute credits (enhanced allocation) | $80K-$120K |
| Dedicated infrastructure support | $40K-$60K |
| Professional services (Year 1 setup) | $50K-$100K |
| Total Year 1 | $670K-$880K |
| Annual renewal (Year 2+) | $620K-$780K |
Year 2+ renewal cost drops as one-time professional services are removed, while the recurring platform licence, compute credits, and support contract continue.
GPU Requirements for On-Premises AI Inference
For customers requiring on-premises or fully air-gapped AI inference, GPU infrastructure scales with team size:
| Team Size | Minimum GPUs | Recommended GPUs |
|---|---|---|
| 100-250 developers | 2x NVIDIA A100 80GB | 4x NVIDIA A100 80GB |
| 250-500 developers | 4x NVIDIA A100 80GB | 8x NVIDIA A100 80GB or 4x H100 |
| 500+ developers | 8x NVIDIA H100 | 16x NVIDIA H100 |
Brunelly's architecture supports two deployment models for AI inference: cloud-hosted AI inference (customer data and platform remain on-prem, AI inference calls route to Brunelly's cloud through approved endpoints) and fully air-gapped operation with local GPU clusters (no external network connectivity required). The cloud-hosted model is significantly simpler and lower-cost to deploy; most regulated enterprises - including major banks using private VPC connectivity - find this approach acceptable under their security frameworks. Full air-gap is typically required only for classified government or defence environments.
5. Unit Economics
Customer Acquisition Cost
| Channel | Estimated CAC | Payback Period |
|---|---|---|
| Self-serve (product-led) | $200-$500 | 1-3 months |
| SMB sales-assisted | $2,000-$5,000 | 3-6 months |
| Enterprise direct | $15,000-$30,000 | 6-12 months |
| Consultancy channel (e.g., Publicis Sapient) | Near zero (partner-sourced) | Immediate |
Enterprise CAC is offset by high ACV ($250K+), yielding strong LTV/CAC ratios even with longer sales cycles.
Gross Margin by Tier
| Tier | Monthly Revenue | Estimated COGS | Gross Margin |
|---|---|---|---|
| Free | $0 | ~$2-5/user | Negative (marketing spend) |
| Professional ($29) | $29 | ~$10-15 | 48-66% |
| Business ($79) | $79 | ~$20-45 | 55-70% |
| Enterprise ($139) | $139 | ~$30-55 | 60-78% |
Enterprise tier commands the highest margins because the incremental cost of compliance features (audit logs, SCIM) is minimal once built, while premium support costs are partially offset by the higher seat price and platform fees.
LTV/CAC Targets
| Segment | Target LTV/CAC | Rationale |
|---|---|---|
| Self-serve | 5-10x | Low CAC, moderate churn expected |
| Mid-market | 8-15x | Sales-assisted but strong expansion |
| Enterprise | 15-25x | High ACV, long retention, expansion revenue |
Net Revenue Retention
| Segment | NRR Target | Expansion Drivers |
|---|---|---|
| Self-serve | 100-110% | Credit upgrades, tier upgrades |
| Mid-market | 110-120% | Seat expansion, tier upgrades |
| Enterprise | 120-140% | Seat expansion across teams, increased AI usage, additional modules, on-prem deployment add-ons |
Enterprise NRR above 120% is achievable because the initial deployment typically covers one team or division. Once value is proven, expansion to additional teams is a natural motion driven by internal advocacy - the same pattern seen at GitHub (127% NRR), Atlassian (130%+), and Datadog (130%+).
6. Revenue Model
Revenue Mix Target
| Source | Year 1 | At Scale |
|---|---|---|
| Enterprise (direct + channel) | 70% | 70% |
| Self-serve (Pro + Business) | 30% | 30% |
This 30/70 split reflects the reality that enterprise contracts provide the predictable, high-value ARR that supports Series A fundraising, while self-serve revenue provides volume, brand awareness, and a bottom-up adoption funnel that feeds enterprise leads.
Year 1 Revenue Path (~$1M ARR Target)
| Revenue Source | Assumptions | ARR Contribution |
|---|---|---|
| Enterprise contracts | 3 pilots convert at ~$250K ACV each | ~$750,000 |
| Self-serve subscriptions | ~500 paid seats across Pro/Business | ~$250,000 |
| Total Year 1 ARR | ~$1,000,000 |
Revenue Expansion Mechanics
Seat expansion within accounts. Initial enterprise deployments cover 50-200 developers. Expansion to 500-2,000+ developers within the same organisation is the primary growth lever. A single enterprise account can expand from $250K to $1M+ ACV.
Usage growth. As teams adopt more AI-powered features (code generation, automated sessions, security scanning), credit consumption increases. This drives both overage revenue and tier upgrades.
New feature modules. Production monitoring, automated deployment, and advanced analytics represent future upsell opportunities as the platform expands.
Consultancy channel multiplication. Each consultancy partner (starting with Publicis Sapient) becomes a zero-CAC distribution channel. A single successful deployment creates a replicable playbook across their client portfolio. Revenue share: 15-25% of first-year contract value.
Path to Series A ($5M+ ARR)
| Milestone | Timeline | ARR Impact |
|---|---|---|
| 3 enterprise contracts converted | Month 6-12 | ~$750K |
| 2 additional enterprise contracts (pipeline) | Month 12-18 | ~$500K |
| Enterprise seat expansion (existing accounts) | Month 12-24 | ~$500K-$1M |
| Self-serve growth (3,000 paid seats) | Month 12-24 | ~$1M-$1.5M |
| Consultancy channel deals | Month 18-24 | ~$500K-$1M |
| Series A target | Month 18-24 | $3M-$5M ARR |
Long-Term Revenue Projections
| Timeframe | Paid Seats | Revenue Mix | Projected ARR |
|---|---|---|---|
| Year 1 | 500 | 60% Pro, 30% Business, 10% Enterprise | ~$320K |
| Year 2 | 3,000 | 40% Pro, 40% Business, 20% Enterprise | ~$2.8M |
| Year 3 | 15,000 | 25% Pro, 45% Business, 30% Enterprise | ~$18M |
| Year 5 | 75,000 | 15% Pro, 45% Business, 40% Enterprise | ~$105M |
As the customer base matures, the revenue mix shifts toward higher-value Business and Enterprise tiers, reflecting team-level and organisation-level adoption replacing individual subscriptions.
7. Competitive Pricing Context
What Enterprises Currently Spend
A typical enterprise with 1,000 developers spends $3M-$7M per year on development tools plus $500K-$1M per year on emerging AI coding tools - and growing. Combined addressable spend: $3.5M-$8M per year per 1,000-developer organisation.
Per-Developer Annual Tool Cost Breakdown
| Tool Category | Annual Cost Per Developer |
|---|---|
| Project management (Jira/Linear) | $200-$500 |
| Source control + CI/CD (GitHub Enterprise) | $252 |
| AI code assistant (Copilot Enterprise) | $468 |
| Code security (Snyk) | $600-$700 |
| Code quality (SonarQube) | $50-$150 |
| Monitoring (Datadog) | $500-$1,500 |
| Design collaboration (Figma) | $420 |
| Documentation (Confluence) | $100-$200 |
| IDE licensing (VS/JetBrains) | $600-$3,000 |
| Total per developer/year | $3,340-$7,190 |
Tool Consolidation Opportunity
Brunelly replaces multiple tools with a single AI-native platform. At $948/year (Business) to $1,668/year (Enterprise), the pricing is a fraction of the combined tool stack it displaces:
Enterprise Tool Stack Cost Comparison (1,000 Users)
| Vendor / Stack | Annual Cost (1,000 Users) | What It Covers |
|---|---|---|
| Atlassian full suite (Jira + Confluence + Bitbucket + Access + marketplace apps) | $500,000-$850,000 | Project management, documentation, basic source control |
| GitHub full stack (Enterprise + Copilot + Advanced Security) | $720,000-$1,308,000 | Source control, CI/CD, AI code completion, security scanning |
| GitLab Ultimate | $985,000-$1,044,000 | Source control, CI/CD, security, project management |
| Snyk Enterprise | $500,000-$700,000 | Security scanning only |
| Combined typical stack (Atlassian + GitHub + Copilot + security + monitoring) | $2,000,000-$4,000,000+ | Fragmented; requires integration and context switching |
| Brunelly Enterprise (1,000 seats at volume pricing) | $660,000-$1,032,000 | Unified AI-native SDLC platform |
Total Cost of Ownership Comparison (Per Developer/Month)
CURRENT STATE (FRAGMENTED) WITH BRUNELLY
------------------------------------------- -----------------------
Jira + Confluence: $15/dev/mo Brunelly Business: $79/dev/mo
GitHub Enterprise: $21/dev/mo (includes everything)
GitHub Copilot: $19/dev/mo
SonarQube: $30/dev/mo
TestRail: $25/dev/mo
Miscellaneous tools: $20/dev/mo
------------------------------------------- -----------------------
Tool cost: $130/dev/mo Tool cost: $79/dev/mo
Integration/admin overhead: $30/dev/mo Integration: $0 (unified)
Context switching cost: $40/dev/mo* Context: $0 (single platform)
------------------------------------------- -----------------------
TOTAL: $200/dev/mo TOTAL: $79/dev/mo
SAVINGS: 60%
*Context switching: developers lose 20-30 min/day switching between tools
(University of California research, valued at ~$40/dev/mo)
PLUS: 25-35% developer productivity gain from AI-native SDLC
For 500 developers at $250K fully loaded = $31M-$44M in productivity value
This document is confidential and intended for prospective investors only.