Executive Summary
Swift Vector provides next-day automated plasmid DNA preparation to Montreal's research community at $200/prep (research-grade) and $1,000/prep (transfection-grade) — 33–50% below US competitors with same-day local turnaround. This forecast extends the validated 18-month model through Year 5 across three scenarios.
Y1 Revenue
$234K
Ramp year · CAD
Y2 Revenue
$672K
+187% growth
Y3 Revenue
$1.34M
+99% growth
Y4 Revenue
$2.15M
+61% growth
Y5 Revenue
$3.21M
+49% growth
Y5 EBITDA Margin
42%
Mature operations
Annual Revenue vs. Opex vs. EBITDA (CAD $000s) — Base Case
Revenue
Total Opex
EBITDA
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Total Revenue (CAD) | $234,000 | $672,000 | $1,344,000 | $2,150,400 | $3,211,200 |
| · Research-Grade | $156,000 | $408,000 | $744,000 | $1,104,000 | $1,512,000 |
| · Transfection-Grade | $48,000 | $180,000 | $360,000 | $564,000 | $780,000 |
| · Subscriptions / Platform | $30,000 | $84,000 | $240,000 | $482,400 | $919,200 |
| Gross Profit | $161,460 | $462,240 | $924,480 | $1,479,024 | $2,208,192 |
| Gross Margin % | 69% | 69% | 69% | 69% | 69% |
| Total Opex (incl. headcount) | $222,000 | $300,000 | $420,000 | $540,000 | $660,000 |
| EBITDA | –$60,540 | $162,240 | $504,480 | $939,024 | $1,548,192 |
| EBITDA Margin % | –26% | 24% | 38% | 44% | 48% |
| Net Income (after SR&ED adj.) | –$5,540 | $162,240 | $504,480 | $939,024 | $1,548,192 |
SR&ED Note: A ~$55,000 SR&ED refund is received in Month 14 (Year 2) and reduces net burn in Year 1 to approximately –$5.5K. Future SR&ED claims are modelled conservatively at $30–40K/year in Years 2–3 as the program expense base grows.
Projected Income Statement
Annual P&L built from bottom-up unit economics: research preps at $200 with 62% gross margin; transfection preps at $1,000 with 82% gross margin; platform/subscription revenue emerging in Year 2 at near-100% margin.
Res. COGS / Unit
$77
62% margin
Trans. COGS / Unit
$184
82% margin
Blended Gross Margin
~69%
Stable structure
Opex Leverage
High
Fixed cost dominated
| Line Item (CAD) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| REVENUE | |||||
| Research-Grade Preps | $156,000 | $408,000 | $744,000 | $1,104,000 | $1,512,000 |
| Transfection-Grade Preps | $48,000 | $180,000 | $360,000 | $564,000 | $780,000 |
| Platform / Subscriptions | $30,000 | $84,000 | $240,000 | $482,400 | $919,200 |
| Total Revenue | $234,000 | $672,000 | $1,344,000 | $2,150,400 | $3,211,200 |
| COST OF GOODS SOLD | |||||
| Research COGS (@$77/unit) | $60,060 | $157,080 | $286,440 | $424,040 | $582,120 |
| Transfection COGS (@$184/unit) | $8,832 | $33,120 | $66,240 | $103,936 | $143,520 |
| Platform/Sub COGS (~5%) | $1,500 | $4,200 | $12,000 | $24,120 | $45,960 |
| Total COGS | $70,392 | $194,400 | $364,680 | $552,096 | $771,600 |
| Gross Profit | $163,608 | $477,600 | $979,320 | $1,598,304 | $2,439,600 |
| Gross Margin | 70% | 71% | 73% | 74% | 76% |
| OPERATING EXPENSES | |||||
| Lab Space & Facilities | $24,000 | $30,000 | $42,000 | $54,000 | $60,000 |
| Personnel (salaries) | $120,000 | $168,000 | $240,000 | $312,000 | $384,000 |
| Equipment / Maintenance | $24,000 | $30,000 | $36,000 | $42,000 | $48,000 |
| Marketing & Sales | $9,600 | $18,000 | $30,000 | $48,000 | $60,000 |
| G&A (legal, insurance, software) | $14,400 | $18,000 | $24,000 | $30,000 | $36,000 |
| R&D / Protocol Dev. | $30,000 | $36,000 | $48,000 | $54,000 | $72,000 |
| Total Opex | $222,000 | $300,000 | $420,000 | $540,000 | $660,000 |
| EBITDA | –$58,392 | $177,600 | $559,320 | $1,058,304 | $1,779,600 |
| EBITDA Margin | –25% | 26% | 42% | 49% | 55% |
| SR&ED Credit (Year 1: M14) | $55,000 | $35,000 | $30,000 | — | — |
| Net Income (pre-tax) | –$3,392 | $212,600 | $589,320 | $1,058,304 | $1,779,600 |
Cash Flow & Balance Sheet
Peak cash deficit of ~$130K occurs at Month 9–10 before revenue ramps. SR&ED refund of $55K at Month 14 (Year 1) materially de-risks early burn. Year 2 onward the business is strongly cash-generative.
Peak Deficit
–$130K
Month 9–10
18-Mo Net Cash
$103K
incl. SR&ED
Y2 Free Cash Flow
$142K
After capex
Y5 Cumulative Cash
$4.2M+
No further raise needed
| Cash Flow (CAD) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Net Income | –$3,392 | $212,600 | $589,320 | $1,058,304 | $1,779,600 |
| + D&A (non-cash) | $6,000 | $8,000 | $10,000 | $12,000 | $12,000 |
| ± Working Capital Changes | –$12,000 | –$18,000 | –$24,000 | –$30,000 | –$36,000 |
| Operating Cash Flow | –$9,392 | $202,600 | $575,320 | $1,040,304 | $1,755,600 |
| INVESTING ACTIVITIES | |||||
| Setup Capex (Y1: equip, lab) | –$50,000 | — | — | — | — |
| Expansion Capex (OT-2 Flex etc.) | — | –$25,000 | –$20,000 | –$15,000 | –$15,000 |
| Investing Cash Flow | –$50,000 | –$25,000 | –$20,000 | –$15,000 | –$15,000 |
| FINANCING ACTIVITIES | |||||
| Seed Investment (Round 1) | $130,000 | — | — | — | — |
| Round 2 (committed, USD $300K) | — | $405,000 | — | — | — |
| Financing Cash Flow | $130,000 | $405,000 | — | — | — |
| Net Change in Cash | $70,608 | $582,600 | $555,320 | $1,025,304 | $1,740,600 |
| Cumulative Cash Balance | $70,608 | $653,208 | $1,208,528 | $2,233,832 | $3,974,432 |
| Balance Sheet (CAD) — End of Year | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Cash & Equivalents | $70,608 | $653,208 | $1,208,528 | $2,233,832 | $3,974,432 |
| Receivables | $25,000 | $65,000 | $120,000 | $195,000 | $290,000 |
| Equipment (net) | $44,000 | $61,000 | $71,000 | $74,000 | $77,000 |
| Total Assets | $139,608 | $779,208 | $1,399,528 | $2,502,832 | $4,341,432 |
| Accounts Payable | $20,000 | $40,000 | $65,000 | $95,000 | $130,000 |
| Shareholders' Equity | $119,608 | $739,208 | $1,334,528 | $2,407,832 | $4,211,432 |
Key Assumptions & Unit Economics
All projections are grounded in the validated 18-month model. Years 2–5 apply conservative volume growth rates and introduce platform/subscription revenue in Year 2.
Pricing
Research-Grade (maxiprep)$200 CAD
Transfection-Grade$1,000 CAD
Subscription / Platform (mo.)$5–15K CAD
Annual price escalation0% (conservative)
Volume Ramp — Research Units/Month
Month 3–415 units
Month 5–645 units
Month 7–975 units
Month 10–12100 units
Month 13–18125 units
Year 2 (avg.)170 units/mo
Year 3 (avg.)310 units/mo
Year 5 (avg.)630 units/mo
Unit Economics — Research
Price$200
Reagents$32
Labor (automated)$15
Sequencing$10
Overhead$20
Total COGS$77
Gross Margin61.5%
Unit Economics — Transfection
Price$1,000
Reagents$84
Labor$25
Sequencing + testing$25
Overhead$50
Total COGS$184
Gross Margin81.6%
Opex Scaling
Base monthly (M1–12)$16,500/mo
Expanded (M13–18)$20,000/mo
Year 2 (team: 3)$25,000/mo
Year 3 (team: 4)$35,000/mo
Year 4 (team: 5)$45,000/mo
Year 5 (team: 6)$55,000/mo
Government Incentives & Capital
SR&ED refund (Month 14)$55,000
SR&ED ongoing (Y2–3)$30–35K/yr
Setup capex (one-time)$50,000
Round 1 seed targetCAD $130K
Round 2 committedUSD $300K
No further raise neededYear 3+
Stress Test: Under a 30% volume reduction, 8% margin compression, and 10% price pressure simultaneously, the break-even point shifts from Month 11 to Month 13 — demonstrating robust stress resistance. The weighted contribution margin remains positive in all scenarios modelled.
Valuation & Investor Return Analysis
Based on validated 18-month financials, annualised run-rate metrics, and biotech SaaS/services comparables. Three methodologies are blended to arrive at a suggested pre-money valuation.
Revenue Multiple (ARR @ M12)
ARR (M12 run-rate)$516,000
3× multiple$1,548,000
5× multiple$2,580,000
6× multiple$3,096,000
EBITDA Multiple
Annual EBITDA @ M12$300,900
6× multiple$1,805,400
8× multiple$2,407,200
10× multiple$3,009,000
Growth Premium Applied
EBITDA × 8 base$2,407,200
+120% growth premium$2,992,320
+130% growth premium$3,241,680
+140% growth premium$3,491,040
Suggested Pre-Money Valuation
$2,755,428
Weighted blend: 60% blended + 15% at 120% + 25% at 130% growth premium
Seed ask (Round 1)CAD $130K
Implied post-money~$2.88M
Seed dilution~4.5%
| Investor Return Scenario | Entry (Pre-money) | Y3 Revenue | Y3 Val. (5× Rev) | Y5 Revenue | Y5 Val. (5× Rev) | Seed MOIC (Y5) |
|---|---|---|---|---|---|---|
| Bear Case (–30% vol) | $2.76M | $940K | $4.7M | $2.25M | $11.2M | ~4× |
| Base Case | $2.76M | $1.34M | $6.7M | $3.21M | $16.1M | ~6× |
| Bull Case (+30% vol) | $2.76M | $1.74M | $8.7M | $4.17M | $20.9M | ~8× |
Exit Context: Strategic acquirers include GenScript, QIAGEN, and Azenta (all actively acquiring Canadian automation labs). A 5× revenue multiple is conservative for a high-margin CRO with proprietary workflows; biotech services peers trade at 6–10× at exit. Round 2 investor (USD $300K committed) at post-seed valuation would hold meaningful equity for a Y4–Y5 exit event.
Operational Milestones & Use of Funds
Capital deployment is staged against measurable milestones, minimizing investor risk. Round 1 covers setup through break-even. Round 2 funds expansion into Ontario and the platform licensing model.
Round 1 — Seed
CAD $130K
Covers M1 → break-even
Round 2 — Growth
USD $300K
Committed; Year 2 deploy
Anges Québec
$25–75K
Per angel; CAD $250K–1M rounds
Milestones Timeline
Month 1–2 · Year 1
Foundation & Setup
Secure shared lab (CQIB / adMare), acquire Opentrons OT-2 + magnetic bead module, build & validate automated workflow, launch ordering website. Deploy $50K capex.
Month 3–4 · Year 1
Customer Validation
15 pilot preps at 50% discount to McGill / UdeM / Concordia labs. Collect letters of intent. Refine 24-hr turnaround SLA.
Month 5–6 · Year 1
Commercial Launch
Official launch to 50+ Montreal research groups. Target 40–50 research preps/month → $8–10K/mo revenue.
Month 7–12 · Year 1
Scale & Transfection Launch
Add transfection-grade at $1,000/prep. Expand to Quebec biotech companies. Reach break-even at Month 11. File SR&ED application (~$55K refund).
Year 2
Platform & Ontario Expansion
Deploy Round 2 (USD $300K). Launch workflow subscription contracts ($5–15K/mo). Expand to Toronto/Ottawa. Grow to team of 3. SR&ED refund received Month 14.
Year 3
National + GMP Capabilities
Add GMP-like documentation for clinical-stage customers. 4-person team. Platform licensing contributes $240K revenue. EBITDA margin crosses 40%.
Year 4–5
Exit or Series A
Optional Series A ($3–5M at $15–20M post-money) for US expansion. Strategic M&A target for GenScript, QIAGEN, or Azenta. Revenue $2.1–3.2M, EBITDA $1.0–1.5M.
Use of Funds — Round 1 (CAD $130K)
| Category | Amount | % |
|---|---|---|
| Opentrons OT-2 + modules | $15,000 | 12% |
| Lab equipment (used/leased) | $12,000 | 9% |
| Lab space deposit + 2 mo. | $5,000 | 4% |
| Reagents & consumables | $10,000 | 8% |
| Website + ordering platform | $5,000 | 4% |
| Legal / incorporation | $3,000 | 2% |
| Working capital (M1–10 burn) | $80,000 | 61% |
| Total | $130,000 | 100% |
Competitive Moat
vs. GenScript (NJ)Next-day vs. 7–10 days
vs. QIAGEN33–50% cheaper
Failed prep rate<1% (vs 2–5% manual)
Lab cost advantage50% vs Boston/SF
SR&ED effective rate42% (highest in N. America)