“We are so glad we added this app to our website! We have done PowerBuys before on one of our partner platforms and it worked great so we are pumped to be able to add it to our website. We have had the same success now that the app is up and running on our site. We have had the greatest help from the PowerBuy team while the app was being integrated to our Shopify. We had all of our many questions answered with speed, warmth and in-depth knowledge. They could not be more helpful! We are looking forward to continuing to work with the team and organically growing our customer base!”
Introduction
Imagine winning only 1% of the time. Would you keep the status quo? It sounds ridiculous to say yes; however, that’s what many e-Commerce brands continue to resort to because there is no alternative to the Buy Now or Add To Cart buttons for their online checkout since the 90s.
That’s why we built PowerBuy. We’re a new, innovative and interactive e-Commerce checkout solution. Rather than traditional static checkouts like Buy Now & Add To Cart that are meant for a single shopper and single product, we invite shoppers to a fun & interactive checkout experience that rewards them when they check out with friends or buy multiple products, which in turn gives merchants more orders & efficiency. All of this is made possible through our patented (#10,929,873) PowerBuy checkout flow.
We believe it’s time that e-Commerce becomes fun and starts rewarding shoppers for their influence and purchasing power.
Success To Date
- Served over 800+ merchants
- US Patent (#10,929,873) for PowerBuy awarded by the USPTO (Feb 2021)
- Ranked as the 16th most fundable startup by Pepperdine University in 2021
- Finalist for Unilever’s social commerce competition
- Participated in a number of e-Commerce AI/ML initiatives with Amazon AWS
- PowerBuy is 1 of 26 e-Commerce Enterprise apps available on Amazon AWS Marketplace
- Rated one of the top Social Commerce apps on Shopify by Bessemer Ventures
- PowerBuy has recently expanded into Southeast Asia starting in Singapore and Indonesia
- Accepted into the 500 Global Startup Program to expand in Japan
How It Works
Problem
E-commerce brands spend countless hours sourcing quality products, building websites to display those products, and finding ways to deliver those products to shoppers. In addition, after they spend thousands of dollars attracting shoppers to their site, unfortunately they may only see 1% of those shoppers turn into customers. The main culprit for the lack of transactions, the checkout flow, hasn’t been updated since the 90’s.
Current e-Commerce checkout flows:
- Are old, static, non-social, non-interactive
- Convert at about 1% on avg
- See customers abandon their carts 75% of the time
- Customers are given no incentive to share
- New customers are not encouraged to join
Why does this happen?
- It’s just what businesses use and are used to, they aren’t aware of any other options
PowerBuy rated as one of the top Social Commerce apps on Shopify by Bessemer Ventures
Solution
PowerBuy’s patented (#10,929,873) checkout allows shoppers to experience a fun, innovative and interactive checkout experience that incorporates Group Buy, Multi-SKU, Gamification and Social Sharing, where they are presented with quantity based discounts which can be achieved individually or with friends.
PowerBuy’s checkout solution enables e-Commerce merchants to receive:
- Enhanced conversions
- Converts at 11.52% on average compared to the industry average of 1%
- Reduced cart abandonment
- Customers abandon their carts 26.49% of the time compared to the industry average of 75%
- A gamified checkout experience
- Free impressions on social media through customers sharing their PowerBuy’s
- Larger cart values through the Multi-SKU feature
- 6 new customers for each SKU enabled for PowerBuy
PowerBuy only takes 15 minutes to install directly to any e-commerce store on Shopify or Amazon AWS.
Testimonials
“I love this app. It has helped out my online store. I am looking forward to the progression of incentives in the future. Awesome app!”
“I totally recommend you to contact PowerBuy directly to make sure you are getting the most out of this amazing app. I just installed it and have already converted a few sales.”
“This has to be one of the greatest apps I’ve used on Shopify. I highly recommend not hesitating to use this on your online store. I noticed an increase in traffic and sales quickly. Great work. Great support. Great app.”
Business Model
PowerBuy is a B2B software-as-a-service (SaaS) that is added onto an existing e-Commerce store as a stand-alone checkout solution.
Revenues are generated through the following:
- Monthly Subscription
- Ranges from $3.99 - $99.99 / month
- Ranges are dependent on the amount of SKUs
- Transaction Commission
- Ranges from 1% - 3%
- Ranges are dependent on the amount of SKUs
PowerBuy makes it easy to sign up and try risk free. We offer a 30-day Free Trial to all our merchants.
Market
Revenue from e-Commerce in the United States amounted to $431.6 billion U.S dollars in 2020. The Statista Digital Market Outlook estimates that by 2025, revenue will increase to $563.4 billion dollars.
In addition, Social Commerce sales in the United States amounted to $46.39 billion U.S dollars in 2020 and eMarketer estimates that by 2025, sales will increase to $79.64 billion dollars.
Since PowerBuy is able to be used globally, we believe the TAM is even bigger than both the e-Commerce and Social Commerce figures.
Press
- PowerBuy awarded US patent for Group Buying and Social Commerce Gamification - Pr Newswire
- PowerBuy ranked as the 16th most fundable startup (Pepperdine University) - Pepperdine’s Graziadio Business School
- PowerBuy announces availability in AWS marketplace - Newswire
FAQ
What is PowerBuy?
PowerBuy is a new, innovative and interactive checkout flow that incentivizes merchants’ shoppers to purchase product(s) with their friends so merchants get more orders + new shoppers all in the same purchase.
How does PowerBuy improve merchants' revenue?
The traditional checkout flow with Buy Now or Add To Cart are static and broken. They convert on average at less than 1%, while PowerBuy converts at 11.52% on average. PowerBuy aims to improve merchant's revenues through an innovative and interactive checkout flow.
What is a quantity based discount?
A quantity based discount is an incentive offered to all shoppers that results in a lower unit price when the aggregated quantity reaches a certain tier. A traditional quantity based discount is based on a single product while PowerBuy’s quantity discount is based on a group of products.
Why do shoppers need it?
PowerBuy enables shoppers to purchase product(s) at a lower price than the Buy Now price while gamifying the online checkout experience. It also provides shoppers a personalized share page where they can invite their friends and have them view and purchase the product(s) that they had purchased or expressed interest in. In addition, PowerBuy Connect allows shoppers to pin the products that they are not ready to purchase but have expressed interest in and are looking for a reason to purchase / checkout while enjoying the group discount. Additionally, it uses AI/ML to “connect” other shoppers together that have pinned the same group of products to help meet the group minimum.
Why do brands need it?
PowerBuy leverages brands' existing shoppers to drive demand and awareness from their own social networks to gain more new customers versus spending $ on clicks, ads, and impressions that typically results in minimal ROI. PowerBuy aims to reduce the brands’ Customer Acquisition Costs (CAC).
Why should investors be interested?
By investing in PowerBuy, you will not only become an investor, but an ambassador to help promote PowerBuy and assist us to achieve our vision to revolutionize the e-Commerce industry which hasn't changed since the 90’s.
Each investor will continue to help expand PowerBuy’s community even bigger and stronger so that PowerBuy can be shared across multiple shoppers, multiple products, and ultimately across multiple brands (cross borders) via our patented technology.
What are your competitive advantages?
PowerBuy is currently one of the only Social Commerce as a Service apps in the world that is patented (#10,929,873) for group buying and social commerce gamification offered to Brands and online Retailers. PowerBuy’s solutions are powered by our proprietary AI/ML technology that provides social commerce insights for Brands, Retail, & Shoppers while promoting personalized products to the shoppers almost at real-time via on-site & off-site AI Notifications.
Where do you see yourself in the next few years?
We see ourselves disrupting and evolving the e-Commerce industry with PowerBuy which truly hasn’t been disrupted since the introduction of the Buy Now checkout in the 90’s. Although PowerBuy will not be replacing the Buy Now or Add to Cart checkout, we see ourselves complimenting it and becoming one of the preferred checkout options in e-Commerce.
What key technology and IP does PowerBuy have?
PowerBuy Technology is all about Group Buying and Social Commerce Gamification Concept with our US Patent (#10,929,873)
Trademark Serial #: 90450611 - The mark consists of a miscellaneous design of an incomplete "P" with a lightning bolt extending behind the letter "P". The design is in PURPLE. The mark and the design are on a PURPLE and light WHITE background.
Team
Bruce Watanabe
Founder & CEO
Bruce is serial entrepreneur who has co-founded and exited a number of technology and Internet ventures including, PowerBuy, MassGenie, SIRE Mobile (SMS Solutions), and SETA International (Global Systems Integrator & Solution Provider). With over 20+ years of leadership experience ranging from start-ups to Fortune 10 companies, Bruce is proficient in start-ups, M&A, Corporate Strategy, Business Development, Sales, and Channel Development.
Thu Truong
Founder & CTO
Thu is an experienced technology executive with more than 30 years of successfully building high traffic websites, large database sizes and real time mission critical systems in a cost effective way like Beauty Encounter, eCost & PCM. Transitioned IT from cost center into profit generator, supporting the revenue growth to $1 billion and successfully led an IT organization with broad technical management skills focused on scalable system architecture on AWS. No one knows better about PowerBuy than Thu as not only she co-founded it with Bruce, but she is the inventor and Chief Architect of the concept.
Tyler Brewer
VP of Growth & Success
Tyler has extensive go-to-market experience from his time as an early member of Uber & Snackpass where he built successful teams & organizations. We can’t think of someone better to be responsible for leading PowerBuy’s growth & merchant success.
Charisma Love Tejada
Operations Director
Cham has almost 15 years experience in the eCommerce industry and has extensive background in Brand Marketing, Vendor Management, Customer Service, IT Project Management and Business Analysis. At PowerBuy, she oversees all operational aspects of the company strategy, helps set strategic goals and executions and is responsible for the flow of operations information to the executive management.
Use of Proceeds
If the offering's maximum amount of $1,000,501 is raised:
| Use | Value | % of Proceeds |
|---|---|---|
| Compensation for managers | $200,000 | 20.0% |
| Unallocated Funds | $0 | less than 0.1% |
| Sales & Marketing | $451,476 | 45.1% |
| Engineering | $300,000 | 30.0% |
| Intermediary fees | $49,025 | 4.9% |
Terms
This is an offering of Series CF Voting Common, under registration exemption 4(a)(6), in MassGenie , doing business as PowerBuy. This offering must raise at least $10,000 by January 27, 2023 at 7:59pm ET. If this offering doesn’t reach its target, then your money will be refunded. PowerBuy may issue additional securities to raise up to $1,000,501, the offering’s maximum.
If the offering is successful at raising the maximum amount, then the company’s implied valuation after the offering (sometimes called its post-money valuation) will be:
1,480,532 shares
×
$11.45 per share
$16,952,091implied valuation
Financials
PowerBuy’s official name is MassGenie , so that’s the name that appears in the statements below.
These financial statements have been reviewed by an independent Certified Public Accountant.
SEC Filings
The Offering Statement is a formal description of the company and this transaction. It’s filed with the SEC to comply with the requirements of exemption 4(a)(6) of the Securities Act of 1933.
We’re also required to share links to each of the SEC filings related to this offering with investors.
Understand the Risks
Be sure to understand the risks of this type of investment. No regulatory body (not the SEC, not any state regulator) has passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials or information posted herein. That’s typical for Regulation CF offerings like this one.
Neither Netcapital nor any of its directors, officers, employees, representatives, affiliates, or agents shall have any liability whatsoever arising from any error or incompleteness of fact or opinion in, or lack of care in the preparation or publication of, the materials and communication herein or the terms or valuation of any securities offering.
The information contained herein includes forward-looking statements. These statements relate to future events or to future financial performance, and involve known and unknown risks, uncertainties, and other factors, that may cause actual results to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond the company’s control and which could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects the current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. No obligation exists to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
More Info
Updates
- Jan 28, 2023Primary offering finalized, selling shares
- Mar 4, 2022PowerBuy was selected by 500 Global as one of...
- Jan 20, 2022PowerBuy 2021 Business Briefing & Looking Ahead...
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