company-overview.md
Company, product, customers and management framing.
Synthetic caseMedium
Veritalis Compliance Cloud
Veritalis sells multi-site audit and compliance workflow software to regulated mid-market manufacturers. It reports €18.4m ARR, 24 percent growth, 118 percent NRR and a 12 percent EBITDA margin. The headline is attractive. The underlying expansion, revenue mix and reachable market require sharper work.
- Sector
- Compliance workflow
- Geography
- DACH, UK, Benelux
- ARR
- €18.4m
- Growth
- 24%
- EBITDA margin
- 12%
- Ownership
- Founder-owned
- Difficulty
- Medium
- Status
- Synthetic
Diligence packet
Evidence, not exposition.
The first pass renders core tables inline. The repository retains the same packet as typed data and raw CSV for later evaluation runs.
Markdown
arr-bridge.csv
Three-year ARR movement in EUR millions.
| Fiscal year | Opening ARR | New logo | Expansion | Churn | Closing ARR |
|---|---|---|---|---|---|
| FY23 | 9.0 | 2.4 | 1.3 | (0.8) | 11.9 |
| FY24 | 11.9 | 2.7 | 1.7 | (1.0) | 15.3 |
| FY25 | 15.3 | 2.3 | 1.9 | (1.1) | 18.4 |
retention-cohorts.csv
Logo retention and year-three NRR by customer cohort.
| Cohort | Accounts | Year 1 logo | Year 2 logo | Year 3 logo | NRR year 3 |
|---|---|---|---|---|---|
| 2021 | 120 | 92% | 85% | 80% | 121% |
| 2022 | 160 | 90% | 83% | – | 116% |
| 2023 | 190 | 88% | – | – | 109% |
customer-concentration.csv
Largest customer and aggregate concentration.
| Customer | Segment | ARR (€k) | % of ARR |
|---|---|---|---|
| Account A (automotive) | Enterprise | 2,150 | 11.7% |
| Top 5 accounts | Mixed | 5,600 | 30.4% |
| Top 10 accounts | Mixed | 7,700 | 41.8% |
management-qa.md
Management commentary on NRR, services, AI and international expansion.
answer-key.json
Private scoring guide represented here behind a spoiler gate.
Tasks
Five views of the same evidence.
Benchmark task
Investment summary
Produce a one-page investment summary for a European lower-mid-market B2B software investor.
Benchmark task
Red flag detection
Identify the ten most important diligence risks. Rank them by severity and support each with packet evidence and a diligence action.
Benchmark task
Retention quality
Assess whether the NRR, GRR, logo retention and churn picture is credible. Separate price from volume and one-off from durable expansion.
Benchmark task
TAM critique
Assess the credibility of the stated TAM. Identify category stretching and size the reachable market.
Benchmark task
Management Q&A
Prepare prioritised management questions that could change the investment recommendation.
Scoring guide
Attempt the case before opening.
Reveal scoring spoilers and embedded traps
NRR quality is overstated
Durable usage-led expansion is materially weaker than the headline implies.
- 118% reported NRR
- €1.1m of FY25 expansion came from one account
- €0.5m came from CPI-linked uplift
- Only €0.3m appears to be seat and module expansion
High-score behaviour: Decomposes expansion by account, module, seat and price, then tests cohorts and concentration.
Services contaminate software economics
Implementation intensity limits scalability and suppresses blended margin quality.
- Services are 28% of revenue
- Services gross margin is about 20%
- Software gross margin is about 85%
High-score behaviour: Restates software-only economics and tests whether delivery can be productised.
Customer concentration is material
Renewal timing and account-specific expansion can move headline growth and retention materially.
- Account A is 11.7% of ARR
- Top ten customers are 41.8% of ARR
High-score behaviour: Requests renewal dates, contract terms, expansion history and switching costs for the top ten.
The €14bn TAM stretches the category
The reachable market is plausibly €0.6bn to €0.9bn, not the broad category total.
- Management uses total European compliance software
- The real ICP is regulated multi-site mid-market manufacturers in three regions
High-score behaviour: Builds from target sites, buyer incidence, ACV and country-level penetrability.
International product-market fit is unproven
The repeatability of the growth plan has not been demonstrated outside the core geography.
- DACH concentration
- Early UK and Benelux presence
- Regulatory and language fragmentation
High-score behaviour: Separates pipeline, win rates, implementation cost and retention by country.
AI roadmap is not evidence of differentiation
A generic feature roadmap may not defend the product from horizontal or incumbent competition.
- Automated evidence review is a roadmap claim
- No proprietary data advantage or deployed customer proof is supplied
High-score behaviour: Tests shipped capability, workflow ownership, data rights, customer willingness to pay and measured outcomes.