LightRFP Revenue Model

Key drivers

Government penetration0.50%

Private penetration0.10%

Marketplace settings

% of marketplace GMV bonded80%

% of marketplace GMV by card20%

Payment share (of 3% card fee)1.5%

Marketplace fee0.0%

Insurance lines

Vendor insurance Owner insurance

Decouple insurance penetration from platform penetration

Marketplace blended take on GMV1.3%

Bonding brokerage revenue (% of bonded GMV)1.2%

Vendor insurance brokerage (% of premium)12%

Owner insurance brokerage (% of premium)12%

Total annual revenue

Government Bonding

Marketplace

Insurance Brokerage

Revenue stream	Tier	Annual revenue	% of total

Government revenue @ 1.2%

Public spend captured

Bond premium @ 3%

Penetration	Spend	Premium	Revenue

$529B public construction (U.S. Census Bureau, Value of Construction Put in Place, Jan 2026 SAAR). 100% bond attach — legally mandated by the federal Miller Act (40 U.S.C. §§3131–3134) and all 50 state Little Miller Acts. LightRFP retains 40% of 3% bond premium via distribution agreement with Propeller Bonds (MGA). Bonding brokerage revenue = 1.2% of bonded GMV.

Marketplace: every transaction requires either performance bonding or credit card payment. Marketplace fee applies on all GMV. No subscription required.

Marketplace revenue

GMV

Buildings

GMV monetization

Path	% GMV	Volume	Revenue

All marketplace lines

Stream	Revenue	%

Average revenue per building

Blended across all building sizes

Line	Per building

Per-$500K-project economics (marketplace only)

Component	Bond path	Card path

Brokerage revenue rates

Line	Rate basis	Effective take
Performance bonding	40% of 3% premium	1.2% of bonded GMV
Vendor insurance	12% of premium	$6,048 / vendor / year
Owner insurance	12% of premium	$7,494 / building / year

Vendor insurance revenue

Vendors insured

Penetration

Tier	Share	Premium	Commission (12%)
Micro (1–5 employees)	65%	$8,000	$960
Small (6–20)	22%	$35,000	$4,200
Mid-market (21–100)	10%	$120,000	$14,400
Enterprise (100+)	3%	$850,000	$102,000
Blended	815K	$50,400	$6,048

Penetration	Vendors	Revenue

815K construction businesses with employees (U.S. Census Bureau, County Business Patterns 2023). Standard broker commissions: GL 15%, WC 10%, Auto 10%, Umbrella 12%, Builder's Risk 12%. Sources: Chubb and The Hartford commission disclosures, Insureon 2025, NCCI.

Owner insurance revenue

Buildings insured

Penetration

Tier	Count	TIV	Premium	Commission (12%)
Small commercial	4.8M	$500K	$5,500	$660
Mid-market	2.2M	$5M	$76,000	$9,120
Large / institutional	800K	$25M	$220,000	$26,400
Trophy / mega	200K	$100M+	$650,000	$78,000
Blended	8.0M	—	$62,450	$7,494

Penetration	Buildings	Revenue

8.0M commercially insured buildings excluding owner-occupied single-family homes. Sources: EIA CBECS (5.9M commercial), Census ACS (370K multifamily 5+ units), Census (est. 1.75M investor-owned 2–4 unit at 50% commercially insured). 15 policy lines per building with attach-rate weighting by tier. Premium rates: $0.30–$0.80 per $100 TIV for property, scaled by building size. Sources: Marsh 2025 Property Market Update, Chubb commission disclosures, The Hartford, Federal Reserve CRE insurance data (Trepp).

Facts & data sources

Government construction & bonding

$529B in U.S. public construction spending (SAAR, Jan 2026)

100% bond attach rate on public projects — mandated by the federal Miller Act (40 U.S.C. §§3131–3134) and all 50 state Little Miller Acts

Standard premium rate: 3% of contract value

LightRFP retains 40% of premium via distribution agreement with Propeller Bonds (MGA), yielding 1.2% of bonded GMV

Private construction market

$1.66T in U.S. private construction spending

8.0M commercially insured buildings (excl. owner-occupied SFH)

815K construction businesses with employees

Average GMV per building: ~$207K (derived from total market / building count)

Marketplace & payments

Every marketplace transaction is monetized via performance bonding or card payment

Credit card processing fee: 3% of transaction value; LightRFP retains 1.5% (default)

Optional marketplace fee applies on all GMV — set to 0% in this model

Performance bonding and insurance lines apply at normal private attach rates

Insurance brokerage

Vendor insurance — blended brokerage: $6,048/vendor/year (12% of $50,400 avg. premium)

Policy lines: GL (15%), WC (10%), Auto (10%), Umbrella (12%), Builder's Risk (12%)

Owner insurance — blended brokerage: $7,494/building/year (12% of $62,450 avg. premium)

Premium rates: $0.30–$0.80 per $100 TIV, scaled by building size and tier

Building inventory breakdown

5.9M commercial buildings (EIA CBECS)

370K multifamily buildings with 5+ units (Census ACS)

~1.75M investor-owned 2–4 unit properties (Census est., 50% commercially insured)

Tier distribution: Small commercial (4.8M), Mid-market (2.2M), Large/institutional (800K), Trophy/mega (200K)

Vendor tier distribution

Micro (1–5 employees): 65% of firms, $8K avg. premium

Small (6–20): 22%, $35K avg. premium

Mid-market (21–100): 10%, $120K avg. premium

Enterprise (100+): 3%, $850K avg. premium

Surety & performance bonding

U.S. surety bond market: ~$8.6B in direct written premium (SFAA, 2022 — up 15.7% from $7.4B in 2021)

Contract surety (performance + payment bonds) represents ~85% of total surety volume

Top 10 sureties control ~60% of the market (AM Best, 2023)

Typical premium range: 1–3% of contract value, varying by contractor creditworthiness and project size

U.S. commercial real estate market

Total U.S. CRE value: ~$22.5T (Federal Reserve Financial Stability Report, Q4 2023; Nareit estimated $20.7T as of Q2 2021)

Annual CRE capital expenditure: ~$450B in renovation, TI, and maintenance spend

Commercial property insurance market: ~$90B in annual gross written premium (NAIC 2023)

Average property management fee: 4–8% of gross rental income, creating procurement cost pressure

Primary data sources

U.S. Census Bureau — Value of Construction Put in Place (C30)· U.S. Census Bureau — County Business Patterns (2023)· EIA — Commercial Buildings Energy Consumption Survey (CBECS)· U.S. Census — American Community Survey (ACS)· Surety & Fidelity Association of America (SFAA)· National Council on Compensation Insurance (NCCI)· Chubb — Commission disclosure filings· The Hartford — Agent commission schedules· Insureon — Small business insurance market data (2025)· Marsh — 2025 Property Market Update· Federal Reserve — CRE insurance data via Trepp· Federal Miller Act (40 U.S.C. §§3131–3134)· AM Best — Surety market share data (2023)· Nareit — U.S. CRE market valuation data· Federal Reserve — Financial Accounts (Z.1)· NAIC — Insurance industry financial data