PART B: VALORISATION PLAN
SECTION I: ESTIMATION OF COSTS
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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 any means of IPR. In order to protect the interests of the inventor it is advisable applications 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 at “idea” stage. The next stage will be the preparation of the mathematical model and a test prototype. They should prove or deny the effectiveness of the idea.
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| …in terms of mass production | |
| For starting a small scale production the company will need a significant funding amount 700 – 850 000 EUR. This will allow manufacturing of at least 20 000 pcs of tires per year.
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| … in terms of marketing | |
| The initial market is in the European countries, having traditions in ecology and green energy. The marketing costs could be significant – up to 50 000 EUR annually, incl. participation in exhibitions, conferences and institutional events. | |
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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 |
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Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
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Fixed costs |
€ 1, 200,000 |
€ 350,000 |
€ 380,000 |
€ 380,000 |
€ 420,000 |
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Personnel |
€ 26,000 |
€ 26,000 |
€ 26,000 |
€ 28,000 |
€ 28,000 |
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Other running costs |
€ 450,000 |
€ 450,000 |
€ 450,000 |
€ 450,000 |
€ 450,000 |
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Marketing costs |
€ 50,000 |
€ 65,000 |
€ 70,000 |
€ 90,000 |
€ 90,000 |
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TOTAL EXPECTED COSTS |
€ 1,726,000 |
€ 891,000 |
€ 926,000 |
€ 948,000 |
€ 988,000 |
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Price per Unit (MT) |
€ 300 |
€ 300 |
€ 350 |
€ 350 |
€ 350 |
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Type of Unit |
Per piece, ready to mount |
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Number of Units |
5 000 |
10 000 |
10 000 |
15 000 |
20 000 |
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TOTAL Expected Revenues |
€1,500,000 |
€ 3,000,000 |
€ 3,500,000 |
€ 5,250,000 |
€ 7,000,000 |
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CASH FLOW REQUIRED (REVENUES-COSTS) |
€ -226,000 |
€ 2,109,000 |
€ 2,574,000 |
€ 4,302,000 |
€ 6,012,,000 |
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TOTAL CAPITAL required for five years |
€ 266,000 |
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SECTION 2: QUALITATIVE FACTORS
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3 |
Dimension of identified target groups |
| The European annual production is over 4 million just passenger cars and related. Looking at just 1% of this quantity – this is more than 30000 automobiles could be fitted with the piezo tires. The higher tire price will not be favorable for entering the Bulgarian market. | |
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4 |
Evaluation of financial Risks for R&D result |
| The financial risks are high, due to the higher price of the ready product and the very limited generation effect of the incorporated piezo crystals.
Modifying the idea – piezo crystals as sensors – will face numerous competitors, already patented or even implemented it in working prototypes. |
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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)
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1. European Funding Define relevance of the product with the following potential funding sources and comment |
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1. The R&D result is suitable for European funding, such as grants, business angels, other funding, due to its ecological nature and green energy trend. |
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2. National Funding |
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1. Possible funding by a large company – investor, seeking to provide venture capital. Since the product/derivates are “green” focused and modern, the company could apply also for various European funding, connected with the ecology. 2. National funding of innovative products development.
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3. Private funding |
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1. An automotive tire manufacturer or related company, interested in implementation of the product in its products line, which could lead to a new stage of their production. 2. Ecology and green energy companies, interested in using the know-how or the ready product for direct implementation or further research and improvement.
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4. Other |
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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 proposed product is with limited possibilities. The idea is not mathematically proved or tested and will have a very low to limited industrial effect.
This is combined with relatively high price of the end product, which makes it inappropriate, considered to its generating abilities. |
Decision of evaluation (Please keep only the appropriate)
- The R&D has a low potential of exploitation
