2. Growth Engine

This section explains how AVX's growth mechanism operates. Assumptions establish the foundation. The Growth Engine shows how that foundation works operationally.

2.1 Growth Flywheel (How the system compounds)

AVX's growth is not a linear sales funnel. Thanks to its multi-module structure, every new customer makes it easier and cheaper to acquire the next. The flywheel consists of five steps:

1. High-intent demos Brands come from outbound, inbound and partner channels. Each is routed into the demo flow of the AVX module relevant to its vertical.
2. Multi-product initial conversion A customer usually starts with a single product, but once they see the ecosystem they expand into a second and third module. This drives ARPC growth organically.
3. Measurable operational and revenue impact Brands rapidly observe direct KPI impact such as higher conversion, lower return rates, reduced content costs and engineering or sales savings.
4. Proof, references and vertical credibility Successful implementations turn into case studies and create trust for other brands in the same vertical.
5. Viral and partner-driven acquisition Existing customers and partner agencies bring new brands into the ecosystem. This reduces CAC and accelerates the flywheel.

2.2 Value Equation (Customer Level ROI)

The value AVX creates for customers comes from multiple operational improvements rather than a single factor. ROI therefore varies by segment and use case rather than being defined by one fixed ratio.

This value structure appears across all AVX modules. TryToBuy increases conversion, Carpetify and Floorify reduce returns, SeeTryBuy lowers content and sales costs, Yachtify and Roomlify shorten decision cycles for high-value products, Wallsfy and Artlify reduce the need for content production.

AI acceleration is now a core contributor across the ecosystem. AI shortens decision cycles, improves product discovery, reduces modeling and content costs, and increases the scalability of CPQ workflows. As a result, AI strengthens every layer of the value model.

Without using specific ratios, the bottom line is: For most customers, the total economic value AVX generates is significantly higher than its cost. This explains AVX's high LTV and strong LTV to CAC performance.

2.3 Growth Levers (What accelerates the model)

AVX's growth accelerates through five core levers. Together, they increase ARR with much higher efficiency.

1. Qualified demo volume Targeted demo flow by segment expands the number of prospects entering the flywheel.
2. Demo to paid conversion rate A few points of improvement in conversion yield much higher ARR with the same demo volume.
3. ARPC and multi-product expansion Customers expand into second and third modules over time. This grows ARR without acquiring new customers.
4. Churn and customer lifetime Because the products create direct KPI impact, churn remains low. Even a few extra months of lifetime increase LTV without additional CAC.
5. Channel mix and CAC efficiency Outbound, inbound, partner agencies and e-commerce platform partnerships together keep CAC at an efficient level.
6. AI-driven expansion efficiency AI reduces cost and time in modeling (2D to 3D), improves demo realism, enhances try-on experiences, and automates configuration tasks. This increases conversion and retention with no proportional increase in cost.

3. Unit Economics

ARPC: Average Revenue Per Customer

ARPC = ARR divided by total customers. With $1.31M–$1.77M ARR across 275–360 SaaS customers and 40–60 CPQ projects, this corresponds to a $240–$320 MRR equivalent range.

LTV: Lifetime Value

LTV = ARPC multiplied by average customer lifetime. With 14–20 months, this produces an LTV range of $3,360–$6,400.

CAC: Customer Acquisition Cost

CAC = paid ads spend plus demo cost plus SDR cost, divided by the number of new customers. As we scale paid acquisition, CAC increases from $180 to $350.

Note: Our LTV:CAC ratio remains strong (11x–18x) even as we scale paid acquisition. The $100K GTM budget enables systematic customer acquisition while maintaining excellent unit economics.

4. Sensitivity Analysis (Scenario Based View)

Four structured scenarios are used: base, best, aggressive, and worst case. Each adjusts customer and project volumes while keeping core assumptions constant.

Even the worst case scenario ($740K–$900K) represents strong performance for an early-stage multi-product platform. The base case ($1.31M) is conservative and data-driven.

5. Growth Driver Breakdown (SaaS and CPQ growth drivers)

Revenue is driven by two main engines: recurring SaaS subscriptions and high-value CPQ projects. Each engine has its own growth drivers and market dynamics.

5.1 SaaS Growth Drivers

• Carpetify: Global rug and carpet market with regional expansion and e-commerce adoption
• Floorify: Multi-material flooring visualization (wood, tile, laminate, vinyl) with B2B and retail channels
• Wallsfy: Wall coverings and wallpaper configurator targeting interior design and retail segments
• Artlify: Art and decor visualization with strong Shopify and Etsy integration for creator-led growth
• SeeTryBuy Viewer: Universal viewer adoption across e-commerce platforms as a standard tool
• Roomlify SaaS: Room planning and design tool for interior designers and retailers
• AI-based visual enhancement: AI-based visual enhancement and try-on generation increases conversion and reduces content creation cost

5.2 CPQ Growth Drivers

• Furniture configurators: Custom furniture manufacturers with complex product options
• Yachtify: Premium yacht configurator serving the luxury maritime segment
• TryToBuy multiverse: Jewelry, eyewear (glasses), and apparel try-on experiences
• Roomlify Enterprise: Enterprise-level room planning and space design solutions
• Door and window configurators: Building materials and home improvement verticals
• Bike and motorcycle configurators: Vehicle customization for manufacturers and dealerships
• Outdoor, kitchen, and garden: Outdoor furniture, kitchen design, and landscaping solutions
• Home appliances: Kitchen and home appliance configurators for manufacturers
• Modular houses: Prefab and modular construction visualization tools
• Industrial equipment: B2B industrial machinery and equipment configurators
• AI Variant Generation: Automatic creation of materials, colors, modules and combinations reduces engineering workload for CPQ projects

6. GTM Impact and Leverage (Marketing and sales multipliers)

The $100K go-to-market budget is designed to create multiplicative effects across all products and verticals. Key leverage points include regional sales teams, creator-led marketing, and strategic partnerships.

• $100K marketing budget impact: Expected to drive +80 SaaS customer uplift and +15 CPQ project uplift through paid ads, content marketing, and SEO
• Regional Account Executives (AEs): EU and North America focused teams to improve conversion rates and shorten sales cycles
• Creator-led marketing: Influencer and creator partnerships to accelerate TryToBuy (jewelry, glasses, apparel) adoption
• E-commerce partnerships: Shopify, Wix, WooCommerce integrations to drive SeeTryBuy Viewer and Artlify adoption
• Agency partnerships: Interior design and marketing agencies as distribution channels for CPQ growth
• Yacht and maritime partnerships: Marina and yacht broker partnerships to expand Yachtify reach
• SEO and content strategy: Vertical-specific content for Roomlify and Floorify to capture organic search traffic
• AI-enhanced demos and product visuals: AI-enhanced demos and product visuals significantly increase demo-to-paid conversion, improving efficiency of the GTM budget

7. 12-24 Month Outlook (Year 2 projection and growth rationale)

Based on current trajectory, market feedback, and product-market fit signals, AVX Reality is positioned for strong Year 2 growth. The following projection assumes continued product development, GTM execution, and market expansion.

Key reasons for Year 2 growth:

• CPQ project volume doubling: From 40–60 projects in Year 1 to 80–120 projects in Year 2 as brand recognition and case studies accumulate
• SaaS global adoption: Expansion beyond initial EU/NA markets into APAC and LATAM regions, with localized pricing and partnerships
• SeeTryBuy Viewer becoming a standard: Widespread adoption as a default e-commerce tool, similar to how chatbots became standard in the 2010s
• Marketplace and platform integrations: Deep integrations with Shopify, Wix, WooCommerce, and other platforms create network effects and distribution scale
• AI-driven modeling and configuration workflows: AI-driven modeling and configuration workflows accelerate production and reduce cost, enabling faster vertical expansion

8. Strategic Interpretation (Key messages)

The model highlights the following five key messages.

• AVX is not a single product company. Eight products create eight distinct revenue streams.
• Most of the revenue comes from recurring SaaS subscriptions.
• CPQ projects provide an additional growth engine that strengthens ARR.
• LTV is high and CAC is low, with a payback period of 1 to 2 months.
• Revenue projections are not aggressive. They are rational and data driven.

9. Risk and Mitigation

The multi-product structure, sales cycles and pricing dynamics introduce specific risks. The table below summarizes the key risks and corresponding mitigation actions.

10. Summary (Three structural pillars)