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ZEG

Virtual Studio for E-Commerce Sellers

United Kingdom
Market: Artificial Intelligence
Stage of the project: Prototype or product is ready

Date of last change: 13.01.2021
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Idea

Amazon/ Shopify sellers spend $500+ and wait for a week to get a handful of product photos from the studio. ZEG is automating the entire process virtually using a proprietary 3D AI tech that enables photo/video creation (synthetic/ CGI) at 1/10th the cost and within 5 mins. No need to ship the product to a studio. Anyone can now build studio quality photos without leaving their desktop.

Current Status

- Growing B2B sellers by 20% m-o-m for beta product
- Pilot with Ebay worth $60,000. Post pilot, product to be rolled out to all sellers in a specific category
- Ongoing pilots with agencies and B2B players for software tool

Market

A 'bottles' search on Amazon US website will reveal over quarter million products. If we capture even 10% of the market for bottles at $500 annual subscription(10x cheaper), we have the potential of $12 M from US bottles market alone. Adobe's addressable market is $100Bn which is similar to ours.

Current customer segment split include: 30% B2B sellers, 25% 2D Creatives, 20% Games/ XR developers, 5% Photographers, and 20% others

Current Market: We are covering fast-moving consumer goods as of now (health, beauty, personal care and similar). We will move to fashion next.

Problem or Opportunity

High-quality visualisation is the number 1 reason for higher conversion in eCommerce. Amazon/ Shopify sellers spend over $500 and wait for a week to get a handful of high-quality product photos from a studio.

Solution (product or service)

ZEG has built proprietary 3D AI tech that allows just anyone to create high-quality product photos without leaving their desktop. User uploads a smartphone photo which is then converted into a 3D model (hyper-real) by ZEG which can be placed in virtual scenes (beach or mountains) to get high-quality product photo. ZEG is first to democratise 3D starting from fast-moving consumer goods segment.

Competitors

- Zerolens
- Vectary
- Adobe
- 3Dctrl
- Autodesk
- Massless
- Matterport

Advantages or differentiators

ZEG is the only 3D nodelling platform that requires no experience to operate and is 95% automated using AI-first tech.

Patent-pending tech allows anyone to build a 3D model using 1-2 photos. A user can create high quality product photo in 5 mins compared to 5 hours on Autodesk/ Adobe software.

Finance

B2B Streams - Min contract for $60,000 per year
B2C Stream - $500 per year annual subscription
APIs for Games/XR - $12000 min per year
Cost Structure: Current burn rate of $12000 per month. Runway of over a year.
Margin: 75% gross margins

Business model

Saas business model for both B2B and B2C
Channels: Unpaid marketing channels include forums, reddit, and Pinterest. Direct LinkedIn approach for B2B.
Metrics: Revenue per month, Automation (how many products are automated), photo Quality, Active Users, Creation Rate, Publish Rate

Money will be spent on

1) 20% on Marketing/ UX/UI
2) 20% on customer sucess/ operations
3) 30% on moving to a new category - fashion and footwear
4) 15% on current product
5) 15% on large B2B sales

Offer for investor

15-17% dilution

Team or Management

Risks

Tech risk is the biggest risk for us. We have proven tech for consumer goods. We would need to do same for home, fashion, and footwear segment.

Market risk is related to uptake in B2C. We can mitigate the risk by large B2B deals.

Incubation/Acceleration programs accomplishment

None.

Won the competition and other awards

- Top 50 creative tech companies in the UK in 2019 and 2020
- Top 250 global deep tech startups hello tomorrow
- Innovate UK grant of $600,000+ in 2019
- Innovate UK grant of $150,000 in 2020

Invention/Patent

We are undergoing patent application for possible 3 technologies created in-house on 3D automation

Photos

Photo 1 - Virtual Studio for E-Commerce Sellers

Product Video

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video