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
Product development from digital city ver1.0 to ver 2.0 with geospatial data and interconnection capability

Integration with web based GIS applications 10 pm x 4000 = 40.000

Integration smart grids = 15pm  x 4000 = 60.000

Gis platforms = 50.000

Smar grid platforms = 70.000

Refining modules to new capabilities 25 x 4000 = 100.000

Total = 320.000

…in terms of mass production
There is no mass productio
… in terms of marketing
Creation of new business model for cities that will support the decision for purchasing the product:

The following assumptions will define the Business Model

  • Who are the participants involved
  • What functions are performed by each participant
  • What are the technology and service assumptions
  • What are the funding and ownership provisions
  • What are the key business terms between the participants
  • What product and pricing strategies will be employed
  • The Business Model must be validated against
  • Vision and policy
  • Regulatory enablers and constraints
  • Financial and technical viability

Cost for creation of  the business module 6 x 4000 = 30.000

Marketing cost for digital city ver 1.0  first year(magazines, exhibition shows)= 40.000

Marketing cost for digital city ver 2.0 third year (magazines, exhibition shows)= 40.000

The rest of the years marketing actions will be preserved at a minimum of 10.000 a 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 50000 70000 90000 120000 140000
Personnel 250000 350000 600000 800000 1200000
Other running costs 175000 50000 150000 200000 300000
Marketing costs 70.000 10000 40000 10000 10000
TOTAL EXPECTED COSTS 545000 480000 880000 1130000 1650000
Price per Unit 50000 50000 100000 100000 100000
ver 1.0 1.0 2.0 2.0 2.0
Number of Units 5 10 15 20 30
TOTAL Expected Revenues 250000 500000 1500000 2000000 3000000
CASH FLOW REQUIRED (REVENUES-COSTS) -295000 20000 620000 870000 1350000
TOTAL CAPITAL required for five years 295.000

SECTION 2: QUALITATIVE FACTORS

4 Dimension of identified target groups
The dimension of markets is 8000 small and mid size cities from 20.000 to 1000.000 habitants’ cities in Europe Asia and Africa. The promotion requires the strategic partnership with a global context consulting organization, which will be used as the promotion channel.
6 Evaluation of financial Risks for R&D result
In the emerging digital service market time to market is the most important factor of success. What is opportunity today in short time might not be anymore. Competitors are planning to enter into the market rapidly. So the competitive advantage of a ready low cost platform might not exist and over passed by competitive products.

Another risk is technological de valorization of the product due to new technologies and advanced in the internet field.

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

7th programme framework – Smart cities and future internet research area, capacities, research projects and energy projects

Interreg programmes for smart city networks

2 National Funding
New development law that could fund the development cost for innovative actions in case of joint venture with private organization

Digital conversion and ESPA

3 Private funding
A joint venture is required with private research organization that will finance the development and marketing cost of  295.000 required under the cash flow plan
4 Other

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 creation of spin-off is the most suitable instrument for financing the cost of 295.000 in the form of a joint venture. Additional funding could be received to finance research and development and pilot application of the platform.

Decision of evaluation (Please tick  as appropriate)

x The R&D has a high potential of exploitation
The R&D result needs minor revisions
The R&D result needs moderate revisions
The R&D result needs major revisions
The R&D result has no potential of exploitation

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