SECTION I: ESTIMATION OF COSTS
|1||Taking into account the rest of the cost evaluation please provide an overall estimation of the total costs for full deployment/production of the R & D result.|
|… in terms of IPR protection|
|The product is not protected by patent or any type of IP protection. It is compulsory for the researcher to apply for granting such a protection as soon as possible. In order to protect the interests of the inventor it is advisable applications for patent or utility model to be filled before the Bulgarian Patent Office with further broadening of the scope throughout Europe. The cost estimation for national protection is about 3000 EUR.|
|…in terms of product development|
|The product is a working prototype, future improvements and amendments are connected with shrinking the error range below 4% border and lowering the production costs, which will make the product highly available even for individuals. The unit can enter small scale manufacturing stage immediately without major changes.
|…in terms of mass production|
|For entering manufacturing stage the initial investment is about € 650,000. The future company manufacturer will need a small production line of pick and place and soldering units, as well as IC programming equipment.
|… in terms of marketing|
|National market can accept few thousands of those highly specialized devices. However the demand throughout Europe could be significantly higher. Promotion at the European market could involve participation in specialized events, exhibitions, fairs, conferences, etc. The costs for marketing could be higher than normal, due to the specifics of the unit – about 50-55 thousand euro per year.
|2||Based on the above assessment as well as the marketing information please provide the correct estimation of the price for R&D product in correlation with costs|
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Fixed costs||€ 650,000||€ 300,000||€ 300,000||€ 300,000||€ 300,000|
|Personnel||€ 25,000||€ 30,000||€ 30,000||€ 40,000||€ 50,000|
|Other running costs||€ 190,000||€ 190,000||€ 190,000||€ 190,000||€ 220,000|
|Marketing costs||€ 40,000||€ 50,000||€ 50,000||€ 55,000||€ 55,000|
|TOTAL EXPECTED COSTS||€ 905,000||€ 570,000||€ 570,000||€ 585,000||€ 625,000|
|Price per Unit (pc EXW)||€ 240||€ 240||€ 240||€ 250||€ 260|
|Type of Unit||Per piece|
|Number of Units||2,500||3,500||4,000||5,000||6,000|
|TOTAL Expected Revenues||€ 600,000||€ 840,000||€ 960,000||€ 1,250,000||€ 1,560,000|
|CASH FLOW REQUIRED (REVENUES-COSTS)||€ -305,000||€ 270,000||€ 390,000||€ 665,000||€ 935,000|
|TOTAL CAPITAL required for five years||€ 905,000|
SECTION 2: QUALITATIVE FACTORS
|3||Dimension of identified target groups|
|The target groups are large companies, building and maintaining large cable nets, power providers, Internet and TV providers, telecommunication, etc. mainly for their servicing/technician staff, including emergencies dealing organizations and structures and to some extend technicians and individuals, who can use the device while building and servicing home related cable nets. An interesting local application could be fast detection and location of the distance to the cable disruption in case of stolen power supply cables, railway, etc. The future company will strive for 4-5% market share.
|4||Evaluation of financial Risks for R&D result|
|Financial risk could occur due to high specialization of the device, thus limiting the number of potential users manly to the level of technicians and engineering staff. The marketing strategy will be of a great importance for reaching the foreseen number of unit sold.
SECTION 3: IDENTIFICATION OF FINANCING SOURCES
After evaluating all the above mentioned criteria, please tick the best financing source for the achievement of R&D result (i.e. own capitals, banking credits, venture capital, business angels, etc)
|1. European Funding
Define relevance of the product with the following potential funding sources and comment
|1. This project is suitable for European funding, such as grants, business angels, etc. The initial investment is not so big.|
|2. National Funding|
|1. Possible funding by a company – investor, seeking to provide venture capital. Although the technology is not new, the product itself is interesting and handy device, at excellent end price and has a potential of a good demand.
|3. Private funding|
|1. A company – retailer of such products, which wants to have an innovative device in its portfolio, manufactured in the European Community and with European origin, as per the regulations. Also a big company specialized in manufacturing of testing and measuring equipment, with interests of marketing the product under its brand name.
SECTION 3: FINAL EVALUATION
|It is requested a final evaluation considering the funding opportunities you believe most suitable for the exploitation of the R&D result, considering the possibility of the creation of a spin-off, further research, in particular, a cost/benefit analysis and a financial projection for the R&D result, type of collaboration identified (i.e. Licensing Agreement, Technical Cooperation, Joint Venture, Manufacturing Agreement, Commercial Agreement with Technical Assistance, Creation of a spin-off, Joint further development)…|
|The researcher is seeking any kind of cooperation with the possible partner – creation of a Joint venture, based on the product or granting a license/manufacturing agreement or any kind of technical cooperation. He could be also interested in manufacturing and marketing agreement with specialized in test and measuring equipment manufacturing company. Which, maybe, is the best solution for exploitation of the R&D result, reached by the inventor.
Decision of evaluation
- The R&D has an high potential of exploitation