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ComplianceAide Investor Memorandum.

ComplianceAide Investor Memorandum.

What happens when the unstoppable force of AI meets the immovable object of a compliance audit?

Introduction

At ComplianceAide, we are on a mission to become the powerhouse for cybersecurity compliance for MSPs & MSSPs by conquering the toughest challenges in corporate compliance. As the only international expert team dedicated to cybersecurity compliance, our cutting-edge AI-driven intelligence platform is uniquely positioned to dominate this critical niche. We are targeting an essential and lucrative market overlooked by other AI tools, with the capability to scale seamlessly from SMEs to enterprise and technology clients.

 Executive Summary

  • ComplianceAide is a revolutionary AI agent team focused on reducing the time and effort required to comply with cybersecurity compliance frameworks.
  • Market Opportunity: The global cybersecurity market is projected to reach $300 billion by 2027, with compliance solutions being a critical component. Primarily serviced by Managed Service Providers.
  • Value Proposition: Our AI-driven platform streamlines the compliance processes, reducing costs and time for businesses by 80% and ensuring they meet regulatory requirements efficiently.
  • ROI: We expect to return 5x on our investment in 18 months.

Team Founders: Been there, done it.

The ComplianceAide is led by Randy Blasik and Mark Heather.

Randy is an experienced founder who previously built and exited a cybersecurity/GRC venture (to a private equity firm) that reached $8M ARR, including $3.4M in cybersecurity/GRC services. This track record of growth and profitable exit positions The ComplianceAide to become the next $100M success applying innovative AI to a high-stakes compliance niche that few others can address effectively.

Mark is an experienced visionary tech leader known for making complex technologies accessible. He transformed a security reseller into a managed services provider, boosting revenue from zero to $3 million and monthly margins from $30K to $70K. He also launched several international companies into Europe. Mark's integration of sales, marketing, and channel programs has driven companies to multi-million-dollar success.

Problem Statement

  • Current Challenges: Businesses face significant challenges in navigating complex cybersecurity compliance frameworks, leading to increased costs, time, and risk of non-compliance.
  • Market Need: Due to a skills shortage there is a growing demand for efficient, cost-effective solutions to manage and automate compliance processes. Driven in part for the need for Cybersecurity Insurance and government regulations.

Solution

  • Our Technology: ComplianceAide leverages advanced AI algorithms to automate and simplify compliance tasks, providing real-time insights and recommendations using existing staff.
  • Key Features: Automated compliance checks, real-time monitoring, comprehensive reporting, and seamless integration with existing systems.

Market Analysis

  • AI-SaaS Explosion: Regulated Technology is projected to grow from $7.6B (2023) to $42B+ by 2031, accelerated by AI’s ability to automate large swaths of manual processes. Recent deals (e.g., AuditBoard at $3B, Vanta at $2.45B, Drata at $2B) show premium valuations for compliance-focused platforms
  • Target Market: Managed Service Providers who see a 73% surge in demand for compliance services.

Market Size:

·        Total Revenue from MSPs: $548 billion and growing.

         Total Addressable Compliance Market (TAM): $600 million, based on 10 frameworks, with 100 MSPs per framework (authorized partners) averaging 100 audits each per year at $6K per audit.

 

·        Total Serviceable Market (SAM): 10% of TAM, equating to $60 million.

  • Competitive Landscape: Traditional GRC platforms like Vanta & Drata is our main competitors. However, these are not seen as true compliance platforms, they are tracking compliance status rather than addressing directly compliance frameworks. Our differentiator is our ability to answer compliance questions and provide all the documentation required to be assessed ready in a very short time, saving thousands of dollars and increasing productivity.

 Business Model

  • Revenue Streams: Subscription-based model, tiered pricing plans based on volume, and additional services like tuning of the agents to specific client requirements. Build new agents dependent on demand.
  • Customer Acquisition: We employ a 2-tier model where we recruit partners based on their expertise within the frameworks we offer, or they have complementary services that we can be a value added component ie Penetration Test companies that add compliance services as the pen test is driven by compliance requirements.

Revenue Forecast:

·        Whats in it for the Investor? We have been bootstrapping the business and have invested around $100,000. We have generated $50,000 in ARR but expect to close on $300,000 with one partner in Q2, who specializes in one cybersecurity compliance framework, we have a further 8 frameworks and are looking for partners who specialize in these.

Without investment, we project that for the remainder of 2025 (April-December) we will generate $500,000 through our existing partners. With investment we will be able to scale quickly, recruiting more partners and trading in new territories. We would target to recruit a further 3 partners in 2025 and have 10 by the end of 2026. Each partner would be capable of generating $500,000 making our 18-month forecast $5M, a 5x return on an investment of $1,000,000.

A graph with a line and orange dots

·        Whats in it for the MSP/MSSP? The MSP/MSSP clients in regulated industries or who need cybersecurity insurance have to go through a standard engagement with a compliance auditor in order to get themselves ready for a certified audit, the process generally follows this workflow:

 To carry out an audit a company needs to put together a project team that the auditor works with, this team usually consists of: A project manager, security manager, heads of departments and a member of the senior management team (board level). The auditing project for a 100-200-employee company this will take up to 12 months to complete.

  • Proven Time & Cost Savings: In pilot audits with top auditors, our AI tool slashed manual hours conservatively saving 50 hours of auditing time, but also months in project management time, giving an average 80% reduction, aligning with external findings by Deloitte that AI driven compliance can cut workloads by 50–75%.
  • Tangible ROI: For a company with up to 200 employees, averaging out the project team’s salaries, and time they need to allocate to the project, this works out to be 480 hours of senior team members time saved and $46,368. Furthermore, for companies paying $250/hour for an auditor, that’s $12,500 saved per audit.

A total saving of $58,868

The MSP/MSSP, now through ComplianeAide has the ability to save their clients thousands of dollars while making triple digit margins for themselves by employing The ComplianceAide to deliver the readiness documents required to satisfy an audit and get certified in under 48 hours.

Even at more conservative rates, the cost savings are immediately defensible.

Scalable & Growth: The ComplianceAide architecture extends to ISO 27001, Cyber Essentials, NIST CSF1 & 2, CMMC 1 & 2, HITRUST, & SOC 2 all similarly laborious frameworks with substantial time savings. We are able to scale virtually limitlessly. We can run multiple audits simultaneously as well as in multiple datacentres. We will grow by adding additional frameworks (there are over 100 and growing) and additional territories expanding into EMEA & Asia.

  • Funding Requirements (18 months): We are seeking $1,000,000 in seed funding in return for 20% equity.
  • Funding Spend: The funds are to be used for partner recruitment, expansion and growth. We want to break into new territories, Asia, Australia and South America, we need to market ourselves via social media, Industry events and press releases. We also require recruiting partners in each territory.

Conclusion

We have experience at both the technical and business level and have exited companies before. We have a market proven solution and revenue. Investing in ComplianceAide is low risk and means joining a revolutionary journey to transform the cybersecurity compliance industry. Our cutting-edge AI-driven platform delivers unparalleled efficiency and cost savings, addressing a critical and rapidly growing market need. With a proven leadership team and a unique value proposition, we are poised to capture a significant share of the $300 billion global cybersecurity market.

We seek $1,000,000 in seed funding to accelerate growth, expand into new territories, and enhance our market presence. This investment will enable us to recruit strategic partners, drive customer acquisition, and continue innovating our platform.

By investing in ComplianceAide, you support a company with a strong competitive advantage and position yourself for substantial returns in a rapidly expanding industry. Join us in revolutionizing cybersecurity compliance and be part of an AI first company success story.