Introduction

The past 3 years have been life-changing for almost everyone, and for those of us who make it beyond 2050, we will forever remember the year 2020 and what followed. Personally, I was very optimistic about the future and shortly after Christmas, I shared an article on LinkedIn Exponential Evolution into the 22nd century, and beyond… and how achieving the singularity by 2050 will lead to dramatic changes in society, and will likely lead to a new biotechnological super-intelligent species that are capable of exploiting our solar system, exploring our galaxy and expanding into the universe. Shortly after, and before all the COVID madness, I quit my job and started the Transformology brand, and my first venture is TransformologyXR (TXR).

Transformology is the art of helping businesses and people achieve digital transformation, by democratising emerging technologies.

TransformologyXR’s vision is to be a leader in transforming real estate, property development, smart cities, business and brands into the Metaverse.

By March 2021, I have found my 3 co-founders and we started building the team and products, leveraging gaming engines (Epic Games Unreal Engine), cloud computing, GIS (Esri ArcGIS), procedural modelling (Houdini) and AI for production automation.

We started with real estate given that it’s low-hanging fruit for Metaverse adoption, real estate and property developers are already familiar with and rely on Computer Generated Images (CGI) and VR for sales and marketing purposes, however, there is a huge gap between what they use now in terms of CGIs and what modern technology can offer in terms of functionality and added value, user experience and customer engagement, and new value streams through the realisation of the metaverse.

Over the past 2 years, we have built the building blocks for building products and services for the Metaverse, leveraging them to build a production-ready and future-proof product for real estate sales and marketing, delivering client pilots and PoCs, and live projects in the UK and the Middle East, and we officially launched the business in March 2023.

We are now on the next step in our journey to build our brand, build our market share for existing real estate products, and leverage our building blocks and learnings to build the next products and services for Meta Cities and Meta Brands.

Opportunity

Problem

Real estate builders and property developers need to adopt new and emerging technologies to improve the customers’ buying experience and engage with their customers through immersive channels. Today, they rely heavily on CGI (Computer Generated Images) for their sales and marketing using still images and video animations to promote their properties. Today’s technology offers transformative immersive channels providing both the businesses and their customers with interactive, integrated virtual digital twins that can transform their sales and marketing cycles. Moreover, today’s technology offers internal solutions for real estate in the design, planning and permissions.

Solution

We created Transformed miXed Realities (TXR) products and services to address these problems. Our products and services leverage Unreal Engine, Esri ArcGIS products and services, cloud computing and Artificial Intelligence to create interactive, photo-realistic, integrated digital twins of the physical built environment to allow both businesses and their customers to immerse in the digital models.

We created our proprietary cloud pixel streaming to host our models and provide pixel streaming as a service to other studios working in the interactive ArchViz market.

Using procedural modelling and AI to automate 3D production to reduce cost and time to create the 3D environments at scale.

Market

The global visualization and 3D rendering software market was valued at $1.48 billion in 2019 and is projected to reach $7.96 billion by 2027, growing at a CAGR of 23.1% from 2020 to 2027. The global 3D Rendering Services market size was valued at $8,5 billion in 2018 and projected to reach $61,6 billion by 2026, growing at a CAGR of 28.10% between 2019-2026. (allied market research)

According to a report by Mordor Intelligence, the Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (XR) market was valued at $17.25 billion in 2020 and expected to reach $184.66 billion by 2026, at a CAGR of 48.7% over the forecast period.

The Metaverse market, depending on the definition and scope is a 1T to 10T opportunity by 2030, More on this in Metaverse Appendix and the new opportunity section.

A new opportunity

Over the next 3 to 5 years we will see more businesses and brands moving to the metaverse and establishing their meta presence, this trend is obvious from the traction of current meta platforms (Decentraland, Roblox and Sandbox)

Another emerging trend for a city as platform solutions are being investigated and developed by tech giants, start-ups and governments. We have started building the PoC for MetaDubai and we will have our MVP end of this year.

The property portal of the future will be built in the metaverse where customers can search for and find their dream homes through immersive experiences. There is potential to partner with one of the big property portals to integrate our technology and future proof their offering or for us (depending on our growth) to create our own portal.

Advertising and Marketing in the metaverse is also a natural evolution for our products, by partnering with major furniture manufacturers for product placement or to sell their products through our models

The company

Company history

“Transformology is the art of helping businesses and people achieve digital transformation through emerging technologies, removing barriers and promoting seamless technology adoption.”

– Hazem Fayyad, Founder and CEO of TransformologyXR.

I started the Transformology brand in February 2020, I quit my full-time job after 12 years of career in the technology sector across all roles; enterprise software development, R&D, product and projects management, technical and cloud architecture, pre-sales and client-facing roles.

I founded Transformology Ltd and TransformologyXR Ltd.

TransformologyXR’s (TXR) vision is to deliver what the company name implies, transforming the real estate, property development, smart cities and businesses and brands into the metaverse, leveraging state of the art in gaming engines, cloud computing and AI to create Meta ready products, services and worlds, what we call Transformed miXed Realities.

I was working with a friend and started by creating our first PoC for interactive show homes. We started with Real Estate architectural visualisation, which is a low hanging fruit since real estate has been using computer-generated images (CGI) and VR technology for some time now, so we thought it would be an easier market to break into given that the users are already somehow familiar with virtual products and services. However, we were soon hit with the realities of hardware limitations and dependency, the need for 3D production capacity to be commercially viable and scalable as well as tackling the implications of the COVID pandemic. We put things on hold and I started doing R&D and working 2 jobs to save my seed investment.

By March 2021, I have saved enough money to start, I have found the solution for hardware limitations and dependency, and found my 3 co-founders. We started hiring and building our PoCs using Unreal Engine and pixel streaming. We started by building our real estate sales and marketing solutions. We now have built 3 products, live in the UK and the middle east – for us the real estate products are our cash cow, they address a current need for real estate businesses and they are easier to build and sell. We are planning to use the revenue from selling real estate products to fund further development of the products as well as fund the R&D into MetaCity and MetaBranch products.

The What?

We are a technology provider for the metaverse, using gaming engines to create immersive virtual worlds, cloud technology to host and scale the meta worlds, Artificial Intelligence to automate and optimize 3d production, we create Transformed Mixed Realities products and services.

We create metaverse products and services on Web 2.0 technologies and infrastructure and integrating web 3.0 technologies, we are able to provide Real Estate and property developers with future proof sales and marketing products and services, cities and governments with Meta city products to enable a city as a platform to collaborate, design and plan and operate smart cities, and finally, we provide businesses and brands with Meta branches to engage with their customers in the Metaverse.

The Why?

To transform real estate and property developers, smart cities, businesses and brands into the metaverse.

Our vision is to democratise technology and offer at a cost effective price point with compelling transformative features and technology to help businesses with their transformation journeys.

We started with Real Estate architectural visualisation market, replacing static CGIs with interactive, photo-realistic, integrated digital twins, this will be our entry into the metaverse and the short to a medium term cash cow. Our vision is to create an early accessible version of the Metaverse by using web 2.0 technologies and infrastructure infused with state of the art and web 3.0 technologies. From there, leveraging the buildings blocks we have developed over the past 15 months to scale our real estate products and services, we will start building Meta branches for businesses and scale our products and services to city scale, creating Meta cities as a service for governments, businesses, citizens and tourists.

We want to help businesses and people make the transition to the Metaverse by building products and services that delivers value today, separating our selves from all the hype and business models that fails to deliver.

The How?

Following the initial ideation and foundational research and development, we made an opinionated decision to use Epic games Unreal Engine as the centre of our products and services, the unreal engine ecosystem offers the perfect mix of technologies and partners to deliver our vision and therefore, it was selected as the centrepiece of our technologies.

Using pixel streaming is also key to our offering, and the choice to develop our cloud pixel streaming services was a strategic decision given the cost savings and freedom to operate that the service will provide us, moreover, the economies of building our proprietary platform will provide us with short to medium terms revenue stream as well as economies of scale benefits. We are part of AWS, Google, Azure, Oracle and OVH Cloud start-up programs.

Following our initial development, we chose to add Esri ArcGIS products and services as a second core to our offering, and by integrating Esri ArcGIS and Unreal Engine we have the perfect recipe to build city-scale products and services.

Another important factor for our vision success is production automation and optimisation. 3D production is one of the main pain points for other companies building for the metaverse, and we wanted to make sure we move away from an agency business model, therefore, we invested in using Houdini procedural modelling capabilities to automate up to 70% of 3D production for real estate, as well as leveraging AI for 3D production for city-scale projects.

These 4 components (Unreal Engine, ArchGIS, Cloud and Procedural modelling) are our enabling technologies, and with our passion and determination we will build the technologies of the metaverse today and help share the future.

Why Us?

Our team has the right mix of technical skills and leadership skills to build the products and services of the future, we have founding members covering all aspects of building the business both technical and non-technical. We have the right mix of technologies to achieve our vision and we have built the company and supporting teams and produced production-ready applications over the past 18 months.

Recent Developments:

Over the past 2 years, we have built our market ready real estate products and services, we have delivered PoCs and Pilot projects for real estate developers in UK, UAE, Saudi, Cyprus, Jordan and Egypt, and we we have delivered commercial live products. we also built our production capacity, our workflow, standards and processes and trained the current team of 15 people to be the core of our teams and help us expand our production capacity in the near future.

We recently entered into a PoC with Dubai Municipality to create a digital twin of Dubai with a focus on automation and the use of AI to create and maintain the digital twin. While still in the early stages, we are excited about the potential of this project and the opportunity to work with one of the leading smart cities in the world.

We also submitted a commercial proposal to build a metaverse property portal for the United Arab Emirates and Saudi Arabia. This proposal is still under review, but we are optimistic about the potential of this project to transform the real estate industry in the region.

Another proof of concept we are ideating on is with RWA al Madinah, a subsidiary of the Public Investment Fund (PIF) in Saudi Arabia. We are exploring the use of the metaverse to create immersive experiences for visitors to Madinah, one of the holiest cities in Islam.

We have also submitted proposals for metaverse master plans in Miami and Cambodia, as well as several real estate projects in Kenya, Egypt, and the UAE. While these projects are still in the early stages, we believe that they have the potential to transform the way people interact with physical spaces.

Additionally, we recently submitted, along with our partners, a commercial proposal to the Saudi Ministry of Culture to create the cultural metaverse for Saudi Arabia. This project has the potential to transform the way people experience Saudi Arabia’s rich cultural heritage and showcase it to the world in an immersive and interactive way.

Expectations

Our goal is to hit break even this year and start being profitable by the end of this year, we have provided 3 forecasts assuming (good case scenario, great case scenario and a worst-case scenario), more details in the financials section.

We are now looking to equity fundraising over the next 6 months in order to manage the financial risk, drive growth and R&D into meta cities and meta branches and increase our marketing spend in order to generate revenue for our ready-to-market real estate products.

We are looking to raise $250,000 – $500,000 for up to 20% equity. if we hit our sales targets for 2023 and 2024, we will be in a position where we don’t need to raise extra rounds to continue our growth, however, we will consider an additional round in 2024/2025 to support global expansion and acquisitions.

By 2025, we anticipate growing to be a market leader in the Metaverse on a path for a potential IPO or being acquired by a big tech company (Google, Facebook, Microsoft or Epic Games).

Products and Services

1- Real Estate

For the real estate, we have created 3 products based on the same underlying building block addressing different types of real estate:

TXR Master Plan: https://youtu.be/XpWGVrU8Gqk
TXR Site: https://youtu.be/1e0POfup6I8
TXR Landmark: https://youtu.be/ndUBN8A-LoQ
TXR Show Home: https://youtu.be/vN3GNmKK9dU

We are also working on a new concept with a potential FTSE 250 UK client, TXR Office for commercial real estate, mixed-use buildings and offices and shared workspaces. Due end of Q4 2022.

We could expand the real estate offering to the technical and facilities management space, we are working with our Jordan client on a new exciting project for Jordan’s first mixed-use green building, providing the technology to present the project, secure the investment for funding bodies and to later measure and monitor the building performance.

Real Estate Key Features

Leveraging the state-of-the-art in gaming engines, GIS solutions and cloud computing, our solutions offer state-of-the-art, interactive, integrated, immersive digital twins, hosted in the cloud, streamed to any device from anywhere

Interactive: Visualise and interact with the city digital twin

Immersive: 3D digital twin immersing the user in the space

Integrated: Integration with IoT devices and external systems

Cloud hosted: Hosted in the cloud to access from anywhere

Compatible: Device agnostic, works on mobile, VR and desktop

2- TXR Meta City

We are building a Meta Dubai as a proof of concept for our meta city product. A city as a platform solution offered as a web based immersive map using GIS web solutions or as an unreal engine meta environment offering more interactivity and better visual and UX experience.

Benefits and Use cases

Benefits

Insights to Improve city Infrastructure

Gain quick access to semantically rich models and know that they are accurate and up to date.

Mobility and Safety

help optimise how space is used to improve the planning and designing of buildings and improve safety, efficiency, and revenue. Provide users with the ability to simulate and analyse foot traffic on or in infrastructure assets, including rail and metro stations, stadiums, shopping malls, and airports.

Engage the public by creating a feedback loop

provide city planners with processes that help them get a quick buy-in on projects and for communicating plans in a comprehensive and visually aesthetic and compelling way. This communication helps residents understand how these plans impact their lives and provides information about ongoing projects to improve their safety and perhaps avoid commuting congestion near project sites

Improve Collaboration

All stakeholders – from city departments to the city ecosystem, to the city’s residents – benefit from a collaborative approach to information.

Improve Urban Planning
urban planners can stream large-scale digital twins online to visualise projects spanning entire cities down to the street level using a combination of terrain models, reality meshes, and semantic 3D city models. The technology allows urban planners to achieve a higher level of detail in their plans.

Make infrastructure resilient: predict, respond, and recover

accurate and reliable risk and analysis data can be sent to agencies involved in flood preparedness, response, recovery, and mitigation. They also help resilience teams improve their decision making by using actionable insights to anticipate early warnings and promote response, increasing public safety and decreasing infrastructure damage

Use cases

Governments: With a digital twin, government agencies can effectively analyze what can be done with the data and improve citizen living, create economic opportunity and revitalize a closer community.

Businesses: With a shared digital twin, businesses can reach their customers in an immersive channel and integrate their TXR Meta Branch for increased brand awareness

Citizens and Tourists: Citizens can learn more about new developments and projects, can participate and provide feedback, Tourists can explore the city and find attractions and points of interest

Developers (Future layer): Application developers can develop and provide their applications through the city digital twin

3- Pixel Streaming

Pixel streaming is the underlying technology that enables us to run our compute intense models in the cloud and stream them into end-user devices, removing hardware limitations and dependency from the end-user device.

Most of our competitors rely heavily on pixel streaming, however, they are using 3rd parties to do the hosting and adding the additional costs to the customer. From the beginning, we decided that we will build our proprietary cloud hosting platform to optimise our cloud hosting costs and potentially offer it as a service to other businesses working in the same space. ATM, 3rd party pixel streaming costs between $3.5 to 5$ /hour with many restrictions on scalability, hosting options in terms of cloud machines capacity and regions availability.

Our platform is multi-cloud (more regions and machine options) and our cost is < $1/hour. We can easily sell it for 2$ at a 100% margin. With economies of scale, our cost will go below $0.5/hour.

4- Meta Branch

Meta branch is a new concept we developed having talked with businesses and brands outside the real estate market. Today, there is an apparent need for businesses and brands to have a meta presence, similar to having a web 2.0 website, today, they need their business and brand to exist in the new virtual world. however, from conversations, non-retail businesses and brands are not satisfied with the current meta-platforms (Decentraland, or Roblox) they want something less gamy and more enterprise.

We have an active opportunity in the pipeline to develop this concept for a Manufacturing company in Denmark (Teksam)

5- Meta Portal

Having already focused on Real Estate Sales and Marketing, the property portal is a natural progression. The property portal market has been growing over the past decade, most regions have well-established leaders (2 or 3) and many challengers portals. The common denominator between all these portals is that they are all Web 2.0 technology with some differentiating features.

The property portal of the future will be a web 3.0 portal with immersive experiences, interactive chatbots, advanced visualisation and insightful analytics. it’s a natural pivot for our MetaCity products, where the focus is on the portal’s business model.

We can create our portal to compete with existing portals, or potentially, partner with a region leader portal or a well-funded challenger to give them the game-changing technology that would set them from the rest of the pack, alternatively, we can create the underlying technology and licence it to property portals turning them from competitors into customers.

Business Model

Revenue Streams

We have built our business around the Metaverse-As-A-Service business model, providing real estate, smart cities, businesses and brands with Metaverse products and services.

The challenges for creating Metaverse products and services are huge (Hardware, Technology, Software, Governance, Social, Political,…) and web 3.0 will need at least 3 more years (2025) before it starts to become mainstream and by 2030, we should have the fully fledged Metaverse. For the time being, we choose to create our Metaverse products and services on Web 2.0 technologies and infrastructure while we integrate web 3.0 technologies.

Similar businesses shifting the metaverse have similar or different approaches, but the common pain point is 3D production for creating Meta experiences, Meta environments and digital twins.

Similar to any competitor in this space, 3D production is a key factor in pricing, production capacity, scalability and long-term growth,

We will sell the 3D Environments as a service (Meta-as-a-service).
We will sell the pixel streaming as a one-off or subscription depending on the customer.
MetaCity, can sell it as a one-off, or operate long-term with subscriptions and licensing.
MetaPortal, similar to traditional property portals business model (subscription, listing fees, addons, advertising,.)
We will create a subscription service for homebuilder sales and marketing. TXR Sales and Marketing Suite.

In the future and depending on our scale and products’ progress, we can sell advertising in Meta Cities, and also offer an online marketplace for furniture manufacturers and sellers to list and sell their products in our Meta Portal (the Amazon of Furniture in the Metaverse)

Go To Market

Primary Customers

Real Estate

Master developers and Property developers – involved in the construction and sales of residential houses, buildings and sites
Housebuilders – involved in the construction and sales of residential houses
Construction companies – involved in the construction of large scale projects
Real estate agents – involved in the sales of residential houses

Meta City product:

Governments
Businesses
XR for our property portal
citizens, urban planners, tourists, event management,…

Meta Branch: Any business needing a MetaPresence (Banks, Retail, B2B companies,…)

pixel streaming platform: Metaverse creators and ArchViz companies

Key Target Customers

Real Estate

In the UK: Major house builder (Barrett, or other similar big builders)
In UAE: Al Dar, Emmar, Damac, Abu Dhabi Holding, Dubai Holding
Globally: Major developers and construction companies

Meta City:

Dubai Municipality
NEOM
In the UK: A Major city (London or Edinburgh)
Middle East: Dubai, Riyadh, NEOM
Europe: Major city
USA: Miami or other major real estate hubs

Customer Persona

Natalie is a Marketing Manager at a Housebuilder company:

As a marketing manager, Natalie needs to create sales and marketing collateral for the company’s developments
She needs more insights about what their leads are looking at and what interests them
She needs to be able to be proactive with her marketing campaigns and create new CGIs faster
She needs to keep her marketing collateral up-to-date following changes from her technical department

Phillipe is a Sales Manager at a House Builder Company

As a Sales manager, Phillipe needs to get qualified leads and engage with them through interactive environments in real-time
He needs tools to enable him to showcase the developments with his clients and be able to demonstrate selling points
Enable the customer to visualise and customise their new home, potential upgrades and different layouts

Mike is a Sales and Marketing Director at a House Builder

Mike needs a cost-effective method to generate leads and share the latest developments with leads
Mike needs to stay ahead of the competition

Kamal is a property development CEO looking for funding for his new project

Kamal needs to secure funding for his new projects, he needs the tools to present his development technical details to funding bodies
He needs to present his development to potential investors in the best way possible to secure funding
He needs to submit planning applications and follow-ups to get building permissions and licences

Eleanor is a Leasing manager at a Real Estate Company

Eleanor needs to enable her leads to find and customise their new office spaces

Susan is a marketing manager at a B2B Brand

Susan needs to have a company presence in the metaverse for her brand
She needs her customers and leads to be able to find her brand and find out more about the products and services

Steve is an urban planner

Steve needs to see how new developments fit into the city skyline
Steve needs to conduct simulations for traffic, occupancy, …

Metaverse Studio:

As a studio, I need a cost-effective, scalable, global pixel streaming platform to host my experiences and share it with customers

Marketing Plan

Our marketing channels will focus on international conferences, paid social on LinkedIn and search engine marketing, the objective is to create awareness and leads for the current line of PropTech products.

Last year we participated in CreTech London, IPS Dubai and Smart City Expo Doha, this year we will continue to participate in UK and Middle East conferences and widen our coverage to include US and Europe conferences.

Our online marketing will consist of three tactics:

Foundational tactics: Website, CRM and mailing lists
Owned and Earned tactics:
1. Website, Page, SEO
2. Social Media (Organic)
3. PR. Ratings and Reviews
Paid tactics:
1. LinkedIn Campaigns
2. Google Ads
3. Conferences and live events

Sales Plan

We will officially launch in June and start our marketing campaign for UK Real estate developers and home builders.

We will pilot TXR Site with a major UK housebuilder by end of Q4 2023

Launch the real estate products in Dubai and Saudi by end of Q4 2023

Launch MetaCity property portal for Dubai by end of Q4 2023

We will target our customers through LinkedIn paid campaigns to target Sales and Marketing managers in the UK to start with and adapt an active LinkedIn presence with the company’s frequent updates and posts on current projects.

We will also follow a more direct approach by contacting leads directly on LinkedIn through LinkedIn messaging or commenting and engaging with their content.

For overseas clients, we will partner with local businesses to promote our products and services (already identified 3 partners in Jordan, Saudi and UAE), these partners will get a commission of 5%-15% on their sales.

We will publish frequent content on new technologies and the Metaverse on LinkedIn to increase brand awareness and position ourselves as a Market and thought leaders

Pricing

Real estate products

TXR Master Plan: Pricing starts at $50000 – $150000+ for a full interactive package + CGI images + Video flythrough (No comparable offerings, but custom application development is usually quite costly)

TXR Site and TXR Landmark: Pricing starts at $10000 – $25000 for a full interactive package + CGI images + Video flythrough (compared to $15000+ for the basic CGI and video flythrough package).

TXR Show Home: $3000 – $5000 for a full interactive package + CGI images + Video flythrough (compared to $5000+ for the basic CGI and video flythrough package).

All packages come with free pixel streaming hours, and free additional CGI images on demand (the price for a static CGI render is $100-$200/image) with our products, you can generate CGIs on demand from the model for free.

Please note, that the pricing for a basic CGI package starts at 15,000 but can go up to $50,000.

For international markets, our pricing will be adjusted based on the CGI pricing in these countries, our approach is simple, we will do the project at 70%-80% of the usual CGI cost

Meta-City,

the pricing strategy is not set yet, from our initial research, companies doing basic 2d or gamified city environments are charging pricing starting at $500,000.

Meta-Branch,

depending on the visuals fidelity and the used technology, competitors’ pricing starts at $10,000 for basic 2d/Gamified, and for more advanced solutions, the price starts at $100,000 per experience

Pixel Streaming,

there are a few big players in this space, pricing starts at $3.5/hour + $500+ subscription fees, our pricing for this service is $2.5 on-demand, and we offer bulk discounts and reservation discounts. Our cost for the service starts at 1$ for on-demand and can go down to $0.25 with scale, build purchases and pre-reservation,