Risks
What could go wrong, and how we will handle it.
01
Frontier-model commoditization of extraction.
RISKFoundation models improve; raw drawing extraction becomes commodity.
MITIGATIONThe defensible layer is per-shop (corrections, rules, vendor context), not extraction itself.
02
Competitive response from Paperless.
RISKPaperless moves down-market with a stripped-down tier.
MITIGATIONBuild the estimator-correction loop and quote-to-purchase decision trail fast enough that a down-market Paperless feels like a different product.
03
Wedge fails to convert outside Dun Rite.
RISKThe wedge doesn't bite outside Ryan's network. Hires don't fire.
MITIGATIONHires are gated on customers #2 and #3 (non-DR). Founder-led embedded deployments in the corridor; regional manufacturing-association outreach; scope-down rather than hire-against-hope.
04
Implementation-tax risk.
RISKDeployment hours don't drop fast enough to clear the 55%+ gross-margin gate at M12.
MITIGATIONQuarterly deployment gate forces scope-down before headcount expands.
05
ITAR / CUI exposure.
RISKAerospace/defense shops handle export-controlled drawings; Veriti is not yet ITAR-eligible.
MITIGATIONScoped post-PMF on a 3–4 month Vanta-accelerated timeline ($80–150K). Self-hosted open-weights on AWS GovCloud, NIST 800-171 self-attestation, ITAR registration, Tech Control Plan. Not on the pre-seed critical path.
VERITI · PRE-SEED · MAY 202617 / 22