Funding

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
USPTO patent 700 euros, maintenance 350 euros, file and application preparation= 1500 euros = total IPR = 2.550  euro
…in terms of product development
Advancing to beta version requires:

Web designer – improvement of website and aesthetics 2PM x 3000=6000

Web developer – improvement of user interface 4PM x 3000 = 12000

Research assistant – Enrichment of content= 24 PM x 2000 = 48000

Mobile developer – development of mobile applications = 12PM x 3000 =  36000

Data architect – refinement in data processing and management=5PM x 3000 = 15000

Crawling and processing nodes equipment=20000

Storage 1TB per ten cities = 10000

Testing = 5PM x 4000 = 20000

Total product development cost= 151.000 euro

…in terms of mass production
There are no mass production cost
… in terms of marketing
There is major marketing cost at the end of year where the beta version will be launched. This cost includes mainly internet marketing through banner promotion and marketing gimmicks to divert potential users into the ClustTour site. These gimmicks include photo contests and  learning the city information campaigns e.g “learning Madrid”. The intensity of the campaign will remain significantly lower in the other periods.
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 50000 70000 90000 120000 140000
Personnel 130000 30000 40000 50000 60000
Other running costs 40000 5000 6000 7000 8000
Marketing costs 50.000 10000 10000 10000 10000
TOTAL EXPECTED COSTS 270000 115000 146000 187000 218000
Price per Unit 5 5 5 5 5
Number of Units 1000 20000 40000 60000 80000
TOTAL Expected Revenues 5000 100000 200000 300000 400000
CASH FLOW REQUIRED (REVENUES-COSTS) -265000 -15000 54000 113000 182000
TOTAL CAPITAL required for five years 280.000

SECTION 2: QUALITATIVE FACTORS

3 Dimension of identified target groups
Target groups related to direct sales (not including client that are using free web services are estimated to 20,000,000 users, the basis of estimation is the user sets of competitors, From the market the product aims to earn 5% market share,
4 Evaluation of financial Risks for R&D result
The financial risks involve mainly product development costs for gaining competitive advantage over the competition. Technical risks are important and must carefully managed and monitored. Corrective actions must be planned to avoid implementation problems and misconfigurations. This risks cover the first year of the operational plan. The new version should be launched at the beginning of second year without delays as time to market is a crucial factor for ICT products.

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

FP7 STREP Digital Content and Libraries

FP7 IST

FP7 e-content

2. National Funding
Not available
3. Private funding
Joint ventures with private investors in the form of spin-off

Venture capital financing

4. Other
Partially financing of operating cost through incubators

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 product requires a joined venture with global web service company in the form of spin-off. The technical excellence of the team must be matched   with skills for market creation under a new business model. Great technical skills often are undervalued from poor business models. Technical and scientific innovations require also intuitive market creation plans.

Decision of evaluation

The R&D has a high potential of exploitation

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