PROBLEM. Each year, growth businesses invest a pre-determined annual marketing budget that must drive a pre-determined number of customers at a pre-determined cost per customer (CPA). When unprofitable, growth businesses fund their marketing budget in 2 ways:

1) Entrepreneurs' dilution. Entrepreneurs of B2C tech firms typically dilute 70-90% of their equity to get through Series D. A staggering 40-70% of the total money raised is spent on Marketing Acquisition or Growth. Implications: Entrepreneurs forego 70-90% of the profit each customer will generate over their lifetime to fund their annual marketing budgets!

2) Company debt (usually convertible, i.e., dilutive if the company is insolvent). Existing financial operators can only fund a portion of Annual Recurring Revenues (ARR), usually 30-50%. That usually represents a fraction of the growth potential...  and the firm still has to hire, train, and maintain the team and infrastructure to deliver campaigns that will deliver customers at a cost that will meet its loan covenants.

SOLUTION. Each month, business clients commit to the number of customers they wish to acquire. Regenerative then uses its GaaS Platform to acquire them "as a service" and it charges its clients, post-acquisition, a price based on average CPA plus a pre-determined premium, all payable as individual customer revenues hit the client's P&L.

Regenerative funds upfront all of the advertising and marketing infrastructure cost of acquiring each cohort of customers. Contrary to financial operators, it also executes marketing campaigns. If GAAS reduces the average CPA, 100% of that efficiency is passed on to the client (new price + new CPA plus Premium). 

BENEFIT. From the client's perspective, there is no need to dilute or take on costly debt to increase yearly marketing budgets. Marketing becomes risk-free, and there is no need to invest in expensive staff and martech infrastructure.  As a result, Entrepeneurs and early investors end up with more customers, acquired faster, at a slightly higher CPA but with lower fixed costs. Over time, they capture 70-90% of the lifetime profits of each customer vs. 10-30%, and they control the Board of their company for much longer, if not forever.  

PROBLEM. Consumers who "gift" a product or service to a friend or a family member save companies the cost of acquisition (CPA) for that incremental customer. Because they are so much more profitable, companies would love to be able to amplify gifting but no one has ever been able to systematize and incentivize the phenomenon appropriately.

SOLUTION. Diffusion as a Service, is a proprietary marketing platform that amplifies, accelerates, and scales up the act of “gifting” by converting most of the unitary CPA savings into an unprecedented price discount that applies to each gift offered, hence providing a considerable incentive for the “gifter” to offer multiple gifts at one time, save a ton of money and please their friends and family with a high-value item that will make a difference in their life. By making the same offer to each gift recipient, DaaS creates a viral loop that can become an epidemic of gifting, a new marketing channel with amazing attributes for the gifters, the recipients, and the firm.

BENEFITS.

• Guarantees a higher contribution margin for each unit (10% higher if we decide to convert 90% of the CPA savings into discounts)
• Unlike current media-based alternatives, Product Diffusion happens through consumers’ generosity towards others, and it does not require any upfront investment (no financial risk)
• Unlike current media-based alternatives, the firm is associated with a beautiful, generous human gesture that does not pollute our visual or auditory environment with attention-grabbing techniques
• Consumer targeting is made with care by humans who love each other.  There cannot be a better targeting mechanism that, in the end, will ensure better product-market fit, customer retention, and customer engagement