Invest in BuildUp

As the founders of BuildUp, we faced a tough realization: we were part of the problem. Like many, we underestimated the role small businesses play as the true heartbeat of our communities. It wasn’t until we saw local businesses struggling—affecting jobs, culture, and economic growth—that we understood the urgent need for change. Small businesses needed a seamless way to access capital and build resilience.

That’s why we created BuildUp. Our platform empowers small businesses by providing tools that are often out of reach: affordable financing, loyalty rewards, and simple digital payments. BuildUp is more than transactions—it’s a transformative ecosystem for long-term economic equity.

Imagine a world where every small business, no matter its size, can grow, attract more customers, and weather economic challenges. BuildUp leverages cutting-edge technology like decentralized finance (DeFi) and digital identity to create a resilient financial ecosystem for small businesses. Through automated savings and community-based financing, BuildUp offers constant support—not just in peak seasons but year-round.

The Problem: Financial Inequity for Small Businesses

Small businesses, which make up 99.9% of all U.S. businesses and employ 45.9% of the private workforce, often struggle due to limited resources and support. This leads to missed opportunities for customers to access better value, savings, and meaningful local connections.

• Transaction Fees Reduce Profit Margins: In 2023 the US businesses paid ~200 Billion in “swipe fees” which is significant, further squeezing the already limited profit margins of small businesses.
• High Customer Acquisition & Retention Cost: Small businesses face costly and ineffective tools for attracting and retaining customers in a competitive market.
• Lack of Access to Capital: High-interest loans and complex processes shut many out. Minority-owned businesses face a 42% loan denial rate, nearly triple the 16% faced by non-minority-owned firms.
• Consumers are unaware of local Businesses: 67% of consumers are unaware of unique local businesses, as large retailers dominate attention and overshadow community-based alternatives.
• Lack of Instant gratitude at Local Businesses: Local businesses often lack loyalty rewards and instant gratitude, leaving consumers without meaningful benefits.

The Solution: BuildUp’s Decentralized Ecosystem

BuildUp combines cutting-edge technology with community-driven solutions to empower local businesses.

• Empowering Local Businesses: BuildUp pools micro-roundups from everyday transactions to user’s digital wallet to support local businesses by spending or lending.
• Boosting Local Economies: Incentivizes shopping local with rewards and reinvests business repayments, creating a sustainable cycle of growth and community wealth.
• Driving Customer Loyalty: Exclusive rewards and DeFi-powered revenue sharing reduce acquisition costs and enhance visibility for local businesses.
• Measurable Impact: Transparent dashboards show users their role in creating jobs, growing businesses, and strengthening the economy.
• Scalable Revenue Model: Monetizes through minimal transaction fees, subscriptions, and marketplace commissions, tapping into a $100B+ market.

How it Works:

• Seamless Contribution: Securely connect the bank account, and BuildUp automatically sets aside a percentage of your everyday transactions into your digital wallet.
• Support Local Businesses: Use your funds to make purchases or contribute to pooled loans that directly fuel the growth of local businesses.
• Earn and Give Back: Businesses repay loans via a small revenue share, which is redistributed as passive income while reinvesting in the community.
• Unlock Reward: Enjoy exclusive discounts, incentives, and passive income for consistently supporting local enterprises and engaging with the platform.
• Track Your Impact: Monitor your contributions, see businesses flourish, and witness your role in strengthening the local economy through our intuitive dashboard.

Why Now?

• Explosive Growth in DeFi Market: The decentralized finance (DeFi) market is projected to grow at a CAGR of 46.8% from 2024 to 2032, unlocking massive revenue potential for low-cost, transparent financial solutions tailored for small businesses.
• Digital Transformation Opportunity: The convergence of blockchain technology, projected to grow from $32.69 billion in 2024 to $162.84 billion by 2027, and the rising consumer preference for digital-first financial solutions, with 89% of U.S. adults now using digital payments, creates a pivotal moment for BuildUp to capture market share, address critical challenges, and unlock transformative potential.
• Economic Challenges at a Critical Point: Inflation, labor shortages, and supply chain disruptions impact 56% of small businesses, creating an urgent need for innovative solutions to ensure their sustainability.
• Rising Demand for Innovation: The pandemic accelerated the move to digital-first financial services. With 6M users on platforms like Marcus and 80% of U.S. small businesses as solo ventures facing mounting operational challenges, the need for tech-driven solutions connecting businesses to communities is greater than ever.

Market Opportunity

Our Total Addressable Market (TAM) analysis focuses on two key segments: Small Business Transaction Processing and Alternative Lending for SMBs.

• Local Business and Transaction Processing Market: 
In 2023, U.S. local businesses, often family-owned, contributed an estimated $3.21 trillion to GDP, approximately 11.8% of the national total. These businesses paid $200 billion in transaction fees, representing over 4% of their revenue. To estimate the market size, we analyzed the overall SMB payment volume by combining data from sources such as the U.S. Census Bureau, the U.S. Chamber of Commerce, and industry reports on payment processing trends.
• Alternative Lending Market:
 The SMB lending market is valued at $2 trillion, with underserved businesses representing a significant opportunity. A notable portion of this gap arises from minority-owned businesses that face barriers to traditional credit. Using data from organizations like the Federal Reserve, we assessed unmet credit demand and derived potential market penetration. Additionally, $17 trillion currently sits in low-yield bank accounts, underscoring the opportunity for high-yield lending platforms.

BuildUp's Position:
 BuildUp addresses these market inefficiencies through blockchain-driven solutions. Our platform reduces transaction costs and improves access to capital, uniquely positioned within these expansive and underserved markets. By leveraging blockchain, BuildUp aims to lower fees for transaction processing and offer seamless lending options tailored to small business needs.

Business Model

BuildUp generates revenue through:

• Transaction Fees: A small percentage from each digital payment.
• Subscription Plans: Access to premium tools like advanced analytics and enhanced financing options.
• Revenue Sharing from Lending: A portion of interest from DeFi loans supports platform sustainability.

Financial Projection:

This forecast reflects a strong growth driven by our scalable platform and expanding user engagement.

1. Year 1: We anticipate acquiring 10,000 users, generating $648,000 in revenue primarily from platform fees.
2. Year 2: A projected user base of 30,000 is expected to drive revenue to $2,252,000, including platform and transaction fees.
3. Year 3: With 150,000 users, revenue will reach $7,220,000, reflecting an additional stream from advertising revenue.

Competitive Advantage

BuildUp is the first platform that connects customers with local business through roundups, tapping into a $12 trillion SMB market in the US.

• Lowest Payment Processing Fees: Offers the lowest payment processing fees, saving businesses money.
• DeFi Integration: Uses decentralized finance for transparent, low-cost funding access for small businesses.
• Community Rewards: Unified rewards system boosts customer loyalty across all BuildUp businesses.
• Micro-Lending: Everyday transactions fund small businesses through a community-driven lending pool.

Go to market Strategy

• Accelerate Growth by onboarding businesses with a compelling low-transaction-fee value proposition
• Empower onboarded businesses to attract and retain customers with impactful loyalty rewards
• Build strong relationships with the Small Business Administration & Development Centers (SBA & SBDCs), and Chambers of Commerce in target cities.
• Launch Gift Card Matching Programs with sponsorships from organizations aligned with our shop-local vision, in partnership with Economic Development Councils.
• Partner with high-traffic shopping centers and malls to onboard small and medium businesses (SMBs) connected to them.
• Launch a community-driven movement to support SMBs and encourage local shopping.
• Launch an Ambassador Program and partner with influencers to onboard businesses and amplify the message.
• Organize scheduled events like Small Business Saturday to encourage movement activities.
• Run focused social media campaigns with inspiring short videos featuring success stories of participating businesses.

Traction

BuildUp is already driving measurable success:

• 20% Increase in Savings: Businesses using BuildUp’s automated savings feature report a significant boost within six months.
• 35% Improvement in Customer Retention: Loyalty rewards lead to more repeat business, helping businesses maintain steady revenue.
• 50% Reduction in Financing Costs: Our DeFi lending model makes capital more accessible and affordable for small businesses.

Why Invest in BuildUp?

• Massive Market Opportunity:
• Small businesses drive $17 trillion globally, yet they often lack access to essential resources.
• Blockchain in business is projected to grow to $40 billion by 2025, positioning BuildUp at the intersection of two booming sectors.
• Community Impact:
• Every dollar spent locally keeps 67 cents in the community, driving growth and job creation. BuildUp maximizes this reinvestment.
• Dual ROI Potential:
• Investors benefit financially through revenue-sharing models and create lasting social impact by supporting underserved businesses.

Use of Funds:

Your investment will drive BuildUp’s growth by promoting consistent engagement within local communities.

1. Incentivizing Local Spending and Referrals (30%): Reward users for supporting local businesses and referring others, driving repeat transactions and boosting engagement.
2. Developing a Rewards Program (25%): Create an engaging rewards system with points, tiers, and exclusive offers to promote loyalty and consistent spending.
3. Scaling Marketing Efforts (20%): Invest in targeted marketing to grow the user base and drive repeat engagement through retention-focused campaigns.
4. Strengthening Platform Development (15%): Enhance platform features like loyalty dashboards and personalized recommendations for a seamless, engaging user experience.
5. Building Strategic Partnerships (10%): Collaborate with Economic Development Corporations to onboard more businesses and expand community impact.

Future Vision: Building a Billion-Dollar Ecosystem

Our goal is to become the global leader in financial ecosystems for small businesses. Here’s how we plan to grow:

• Expand Financing Options: Partner with additional DeFi providers to offer more flexible peer-to-peer funding solutions.
• Enhance Digital Identity: Launch verified business IDs to streamline lending and boost financial credibility.
• Global Expansion: Scale into international markets to address the global need for small business support.

Be Part of the Solution

Investing in BuildUp means joining a movement to reshape local economies, empower small businesses, and build equitable communities. Your investment will fuel dreams, create generational wealth, and drive lasting change.

Together, we can create stronger communities, one investment at a time.

Join us on Wefunder and be part of a billion-dollar solution transforming lives.