Funding

PART B: VALORISATION PLAN

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 method and the tying tool are 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 method is fully developed and working. A working prototype of the tying tool is manufactured. The next stage will be a pilot batch production. The prototype is fully working and tested, so little amendments are expected. The researcher is interested in developing a fishing hooks tying machine in order to increase its production volume.

 

…in terms of mass production
The researcher has already started a small company manufacturing fishing gear. The company will need about 50 000 EUR additional funding for development and manufacturing of tying machine for its needs.

 

… in terms of marketing
The initial markets comprise of two parts – mainly European and overseas. The promotional European marketing costs could be estimated at 15 000 EUR per year, while worldwide could rise up to 60 000 EUR annually, incl. participation in specialized exhibitions, conferences and institutional events.

 

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

€ 50,000

€ 20,000

€ 20,000

€ 20,000

€ 20,000

Personnel

€ 16,000

€ 16,000

€ 16,000

€ 16,000

€ 18,000

Other running costs

€ 20,000

€ 20,000

€ 20,000

€ 20,000

€ 20,000

Marketing costs

€ 15,000

€ 25,000

€ 25,000

€ 25,000

€ 25,000

TOTAL EXPECTED COSTS

€ 181,000

€ 81,000

€ 81,000

€ 81,000

€ 83,000

Price per Unit

€ 0.25

€ 0.25

€ 0.25

€ 0.25

€ 0.25

Type of Unit

Per piece

Number of Units

200 000

400 000

450 000

500 000

550 000

TOTAL Expected Revenues

€ 50,000

€ 100,000

€ 112,500

€ 125,000

€ 137,500

CASH FLOW REQUIRED (REVENUES-COSTS)

€ -131,000

€ 19,000

€ 31,500

€ 44,000

€ 54,500

TOTAL CAPITAL required for five years

€ 131,000

NB : More precise calculations could be presented after manufacturing and testing the tying machine. The prototype costs will help evaluation and confirmation of the five year costs span.

 

 

SECTION 2: QUALITATIVE FACTORS

 

3

Dimension of identified target groups
The European needs of fishing lines with hooks are estimated at 10-ths of millions per year. The researcher’s company currently exports up to 200 000 lines per year just in few West European countries. Also there are many different sizes of hooks attached to the line, which reveals virtually unlimited marketing possibilities. The most important characteristic of the fishing line with hook is its price, which is mainly formed by the tying labor. In order to be competitive the biggest fishing tackle brands like Colmic, Dam, Shimano, Mustad etc. are outsourcing the tying operations in third countries – China, Vietnam, Thailand, Myanmar, India. Actually using top quality hooks and fishing lines their weakest point becomes the tying and the fishing knot itself. Here comes the possibility for this company, developer – to provide quality tying with a knot with excellent technical characteristics at very competitive prices. With a suitable machines and equipment Stevas company could steadily increase its market share.

 

 

4

Evaluation of financial Risks for R&D result
The company has already developed a steady market for its products, using its developed method for tying of fishing hooks. There is a great demand for such products worldwide in case the seller is providing excellent quality at very competitive prices. So the financial risk is low.

 

 

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.  The R&D result is suitable for European funding, such as grants, business angels, etc, due to relatively small initial capital needed.

 

2. National Funding

1.  Possible funding by a company – investor, seeking to provide venture capital. Since the product/derivates are very interesting, with great demand and good return, it could be a big opportunity.

2.  National funding of innovative products development.

 

3. Private funding

1.  A bank loan at certain conditions if the company finds a suitable machine manufacturer for its needs.

 

4. Other

Since the amount needed for financing of the research and the machine is relatively small STEVAS company could provide, at least partially, the funds necessary.

 

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)…
Most suitable opportunity could be the establishment of a technical and research co-operation with a small and versatile tailor made machines and equipment manufacturer to develop and produce a device, suitable for the needs of STEVAS company. This company has already developed the fishing hook tying method and a suitable tool for faster and more precise implementation of it, which could be implemented in the machine schematics and become a backbone for its creation.

 

 

Decision of evaluation (Please keep only the appropriate)

  • The R&D has a average potential of exploitation

 

 

 

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