David's ~$10M commitment does not go in all at once. Stage 1 is a ~$1.121M lean startup — less than half a million (~$461k) to prove the sellable system, and the same stage lands the first electrical firm (~$660k) — before any scale capital moves. From there, the ~$10M of equity deploys in gated waves as acquisitions close — ~$1.1M in Year 1, then ~$2.1M, ~$2.2M, ~$2.0M, ~$1.6M, and ~$1.0M through Year 6 (cumulative ~$10M) — not a single lump sum. Each wave is released only when the prior integrations have proven out on real numbers — fleet, revenue, and integrated EBITDA on track. So his money follows evidence, not optimism, and gating limits how much is ever committed ahead of proof. If a wave's gate isn't met, the next wave simply doesn't release.
Less than half a million to prove it — then the roll-up. Stage 1 builds the sellable system first — AI back office, JobTread, the standardized field kit, and playbooks — in the opening weeks while Steve is under contract, gets the first truck on the road, proves electric, and buys the first firm. Once the model is proven, the same gated discipline funds the acquisition engine: ~$10M of equity plus ~$6M of acquisition debt and seller notes consolidates trade firms into ~19-truck fleets per trade (~57 trucks) — a ~$37M platform returning David about 2.8×. Prove it small; scale it only on proof.
| Tranche | Timing | Amount | Use of capital | Release gate / milestone |
|---|---|---|---|---|
| Stage 1 · Year 1Lean startup — prove it + first firm Launch |
Year 1 |
~$1.121M | Build the sellable system first — AI back office + JobTread + the standardized iPad / phone / network field kit + playbooks — in the opening weeks while Steve is under contract (near-zero burn). Stand up the licensed electric entity, get the first truck on the road, prove electric, and acquire the first electrical firm. A deliberately minimal office (~$30k), not a fancy build-out. Under half a million (~$461k) proves the system; the balance (~$660k) lands the first firm. | Green-light to the acquisition waves: the sellable system built and running on real work, electric proven — jobs sold, installed, margins confirmed — and the first firm acquired under the licensed entity. |
| Acquisition wave · Year 2Electrical roll-up Wave |
Year 2 |
~$2.1M | First acquisition wave — acquire electrical firms onto Verified's technology and business management, alongside seller notes and acquisition debt. Deals close only as targets clear diligence; equity is called as each deal closes, not in advance. | Green-light to the next wave: acquired electrical firms integrated onto the shared system — fleet growing, integrated margins and EBITDA on track. |
| Acquisition wave · Year 3Plumbing — next trade Wave |
Year 3 |
~$2.2M | Deepen electric and start the next trade — plumbing — by acquisition: stand up the licensed plumbing entity as a bridge, then acquire plumbing firms onto the proven system. Deep in one trade, then the next. | Green-light to the next wave: plumbing acquisitions integrating on the shared system; electric roll-up continuing to perform. |
| Acquisition wave · Year 4HVAC — next trade Wave |
Year 4 |
~$2.0M | Add HVAC by acquisition onto the platform while the electric and plumbing roll-ups keep compounding — funded buyouts plus seller notes and acquisition debt, called as deals close. | Green-light to the next wave: HVAC acquisitions integrating; prior trades on track toward target fleet size. |
| Acquisition wave · Year 5Civil + scale-up Wave |
Year 5 |
~$1.6M | Add civil by acquisition and deepen every trade toward ~19 trucks each, consolidating the platform toward its ~57-truck, ~$37M scale. | Ongoing gate: integrations proving out and platform EBITDA on track before further capital is called. |
| Acquisition wave · Year 6Scale-out Wave |
Year 6 |
~$1.0M | Final wave — the last tuck-in acquisitions and working-capital top-up that complete the ~57-truck platform ahead of exit, called only on proven integrations across the trades. | Ongoing gate: called only as deals close and integrations prove out; capital not needed is simply not called. |
| Total equity deployed in waves | ~$10M | Called in gated waves as acquisitions close — each released only after the prior integrations prove out, not a single lump-sum outlay. Alongside equity, ~$6M of acquisition debt and seller notes — secured by the acquired shops' own cash flows — fund the buyouts, for roughly ~$16M of total acquisition firepower. Leverage amplifies returns and risk alike. | ||
Each wave releases only once the prior integrations prove out. Stage 1 proves the system and electric before any scale capital moves, and each trade must be integrating and performing before the next wave follows — so the bulk of the commitment is never exposed at once.
~$6M of seller notes plus SBA 7(a) / bank debt — secured by the acquired shops' own cash flows — sits alongside the ~$10M of equity for roughly ~$16M of acquisition firepower. The same equity controls more earnings — and, honestly, more risk.
Stage 1 builds the sellable system — AI back office, JobTread, the standardized field kit, playbooks — while Steve is under contract, at near-zero burn. That system is what Verified sells to owners alongside a buyout, so every acquisition lands on a proven platform, not an experiment.
Stage 1 stays lean: a minimal office (~$30k) — war room, a couple of small offices, conference and kitchen/bath — a wrapped used cargo van as the first truck, and one field crew. Capital goes to proof, the sellable system, and crews, not a fancy build-out.
Buyouts are costed — purchase multiples (~4× in, ~8.5× out), deal costs, a funded M&A / integration team, and leverage all budgeted. Integration is the real risk, so the plan goes deep in one trade before the next and calls each wave only on proven integrations.
David commits ~$10M, but he funds proof, not promises. Stage 1 is a ~$1.121M lean startup — under half a million (~$461k) to prove the system, plus the first firm — that builds the sellable system while Steve is under contract, gets the first truck rolling, proves electric, and lands the first acquisition before any scale capital moves. From there the ~$10M of equity is called in gated waves as acquisitions close — ~$1.1M, ~$2.1M, ~$2.2M, ~$2.0M, ~$1.6M, ~$1.0M through Year 6 — each released only when the prior integrations have proven out, with ~$6M of acquisition debt and seller notes alongside for ~$16M of firepower. If a wave's gate slips, the next wave waits. Leverage and integration cut both ways — they amplify the upside and the risk — but the structure is designed so capital is committed at the speed of proven integration, while the upside compounds across a scaling ~$37M platform.