Seed Round – Phase 1
COST SAVINGS
GTM & Use of Funds
Patented AI-powered vendor optimization marketplace for SMBs — built to monetize when customers save.
Vision
What We Do
Cost Savings is building the Patented AI-powered vendor optimization marketplace for SMBs.
We use Patented AI to analyze real invoices, identify cost inefficiencies, and give businesses two clear paths:
  • Negotiate better pricing using our AI-generated savings plan
  • Switch to a lower-cost recommended vendor
How We Monetize
When they switch, we earn recurring residual commissions.

We monetize when customers save.
The Opportunity
SMBs overspend billions annually on recurring expenses due to:
Vendor pricing opacity
Contract complexity
Subscription sprawl
Lack of monitoring
Limited negotiating leverage
Cost Savings transforms invoice data into:
Immediate savings visibility
Vendor comparison intelligence
Negotiation leverage
One-click vendor switching

We sit between SMBs and their largest recurring expenses — and monetize the optimization.
Phase 1 Objective
The $1M seed round funds validation of the residual marketplace model.
1
Proving vendor-switch driven monetization
2
Building core invoice analysis infrastructure
3
Establishing strong vendor partnerships
4
Demonstrating repeatable customer acquisition
5
Generating meaningful recurring residual revenue

This phase is about validating the engine — not building the full ecosystem.
Phase 1 Product Scope
AI Invoice Analysis Engine
  • Upload-based document ingestion
  • Structured data extraction
  • Savings opportunity identification
  • Vendor comparison modeling
  • Clear ROI breakdown
Actionable Plan Generator
  • Negotiation-ready savings report
  • Side-by-side pricing analysis
  • Cost reduction roadmap
Vendor Switching Workflow
  • One-click switch experience
  • Onboarding coordination
  • Vendor integration flows
Residual Commission Infrastructure
  • Revenue tracking
  • Commission reconciliation
  • Vendor performance analytics
Basic Engagement Layer
  • Email delivery of savings reports
  • Follow-up triggers
  • Switch reminders

Phase 1 focuses on clarity, simplicity, and monetization validation.
Customer Experience Workflow
This creates alignment, reduces friction, and accelerates adoption.
Embedded Employee Engagement Layer
When a business joins Cost Savings, every employee gains access to our closed-loop discount marketplace through our app.
Employees Receive
Travel discounts
Entertainment savings
Shopping benefits
Exclusive vendor offers
This Creates
Organization-wide engagement
Internal advocacy
Ongoing app usage
Reduced churn
Cross-sell opportunity
Cost Savings becomes embedded across the organization — not just in finance.
Revenue Model – Phase 1
Primary Revenue
Residual vendor commissions earned when customers switch
  • Recurring revenue tied to contract value
  • High lifetime value per account
  • Monetization embedded in vendor relationship
Secondary Revenue
  • Low-cost membership for negotiation-only users
  • Optional performance-based savings fee
Goal
Residual revenue becomes primary revenue driver.
Case Study
National Clothing Retailer (Multi-Location Operator)
After AI-driven invoice analysis, the retailer consolidated into a single optimized vendor partner.
Banking
Merchant Processing
Lending
Payroll
Customer Impact
$337,600
in total annual savings
  • $18,800/month operational savings
  • 4% savings on $2.8M credit facility
Clear, measurable ROI across four categories.
Cost Savings Revenue Impact
~$15,000/month
in recurring residual commissions
Multi-category residual streams
Revenue scales with contract size
Deep vendor integration
Initial Vendor Categories
Phase 1 targets categories with recurring contracts, measurable inefficiencies, strong commission economics, and clear onboarding pathways.
Telecom & Internet
High recurring spend with significant pricing opacity and switching opportunity.
Banking & Merchant Services
Complex fee structures with strong commission economics for optimized vendors.
Energy Supply & Efficiency Upgrades
Measurable inefficiencies and clear onboarding pathways for switching.
SaaS Subscriptions
Subscription sprawl creates immediate savings visibility and switch potential.
Payroll Providers
Recurring contracts with meaningful residual revenue potential.

These categories support meaningful residual revenue.
Go-To-Market Strategy
"Upload your invoice. Discover how much you're overpaying."
Low Friction
High ROI
Immediate Insight
Customer Acquisition Strategy
  • Founder-led outbound
  • Targeted SMB outreach
  • Industry-specific campaigns
  • Referral incentives
  • Case study-driven selling
Sales Motion
1
Upload
2
Analyze
3
Show ROI
4
Offer Switch
Land → Save → Switch → Earn.
Target Customer Profile
Core Profile
  • SMBs with 20–500 employees
  • $1M–$50M annual revenue
  • Multi-vendor recurring expense structure
  • Service-heavy or location-based operations
Ideal Early Segments
Healthcare & Dental Practices
Franchise & Multi-Location Operators
Retail & Hospitality Groups
Property Management Companies
Professional Services Firms (Law, Accounting, Agencies)
These customers have predictable recurring spend and strong vendor switch potential.
Phase 1 Traction Goals (12 Months)
1K
Businesses Onboarded
500–1,000 businesses onboarded in Phase 1
30%
Vendor Switch Rate
25–35% vendor switch rate target
15
Vendor Partnerships
10–15 active vendor partnerships established
Recurring Residual Revenue
Recurring residual revenue exceeding subscription revenue
Unit Economics
Demonstrated positive unit economics

Goal: Prove scalable residual marketplace engine.
$1M Seed – Use of Funds
Runway Target
12–15 Months
Capital Allocation Overview
Capital is allocated to validate the core engine.
Use of Funds
Product & Engineering ~45%
AI Invoice Ingestion Engine
Upload-based document ingestion and structured data extraction
Savings Identification Logic
Vendor comparison modeling and clear ROI breakdown
Switching Workflow Automation
One-click switch experience and onboarding coordination
Commission Tracking Infrastructure
Revenue tracking and commission reconciliation
Secure AWS Deployment
Core engagement system on lean, scalable architecture

Objective: Launch fully functional switch-driven revenue platform.
Use of Funds
Vendor Partnerships & Business Development ~20%
Vendor Acquisition
Identify and onboard vendors across core categories
Commission Negotiations
Secure strong-margin residual agreements
Integration Workflows
Build seamless vendor integration flows
Residual Agreement Structuring
Structure long-term recurring commission agreements
Ongoing Partner Management
Maintain and grow vendor relationships

Objective: Secure strong-margin residual agreements in core categories.
Use of Funds
Sales & Customer Acquisition ~20%
Sales Activities
  • Founder-led sales
  • SDR support
  • CRM & prospecting infrastructure
  • Industry targeting campaigns
  • Early ROI case studies
Objective
Acquire first 500–1,000 SMB customers through a repeatable, scalable acquisition motion.
Key Metrics
  • Cost per acquisition
  • Switch conversion rate
  • Residual revenue per customer
Use of Funds
Cloud & AI Infrastructure ~10%
Hosting
Secure, scalable cloud hosting on AWS
Embedding & Inference Costs
AI model inference for invoice analysis and savings identification
Storage
Secure document and data storage infrastructure
Email Infrastructure
Reliable delivery of savings reports and follow-up triggers
Monitoring Systems
Performance and uptime monitoring across all services

Lean but scalable architecture.
Use of Funds
G&A & Legal ~5%
Vendor Contracts
Commission Agreements
Compliance Review
Accounting
Insurance

Ensure structural integrity of vendor revenue agreements.
Phase 2 (Future Raise)
Once Phase 1 Proves:
Repeatable vendor switch rates
Attractive residual margins
Scalable acquisition
Strong vendor partnerships
Phase 2 Capital Will Fund:
  • Advanced AI memory system
  • Real-time monitoring engine
  • Multi-category vendor expansion
  • Automated engagement infrastructure
  • Embedded financial products
  • BaaS integration

Phase 1 validates. Phase 2 scales aggressively.
Long-Term Vision
The AI-Powered Vendor Optimization Layer
For SMBs — the definitive platform for recurring expense intelligence
The Distribution Channel
For essential business services — connecting SMBs to better vendors at scale
The Embedded Financial Optimization Platform
Converting expense data into long-term recurring margin
We convert expense data into:
Vendor Distribution
Recurring Residual Revenue
Embedded Financial Opportunities
Long-Term Recurring Margin

We sit between SMBs and their largest recurring expenses — and monetize the flow.