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
There are no costs associated with IPR protection.
…in terms of product development
Costs in this category refer to personnel and fixed costs for further research, design, implementation, and testing, in order to develop a product based on the original R&D result. The total cost is estimated at 492.000 € and concerns a period of two years.

  • 96 person-months of software developer effort over two years (240000 €)
  • 48 person-months of senior developer effort over two years (140000 €)
  • 24 person-months of chief developer effort over two years (90000 €)
  • Computing hardware (9000 €)
  • Software licenses (3000 €)
  • Office equipment (10000 €)
…in terms of mass production
Costs in this category refer to post-development activities, i.e. software distribution, customer support, and maintenance. The total cost is estimated at 516.000 € and concerns a period of three years.

  • Internet-based distribution (6000 €)
  • Customer support: 36 person-months of help desk personnel (90000 €)
  • Post-development maintenance (bug fixing) and feature addition:
    • 72 person-months of developer personnel (180000 €)
    • 36 person-months of senior developer personnel (105000 €)
    • 36 person-months of chief developer personnel (135000 €)
… in terms of marketing
Costs in this category refer to production and distribution of leaflets, attendance in exhibitions and conferences, and published material in relevant IT magazines. The total cost is estimated at 55.000 €.
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 22.000 € 2.000 € 2.000 € 2.000 €
Personnel 235.000 € 255.000 € 235.000 € 235.000 € 235.000 €
Other running costs 14.000 € 14.000 € 14.000 € 14.000 € 14.000 €
Marketing costs 15.000 € 25.000 € 15.000 €
TOTAL Expected Costs 271.000 € 269.000 € 266.000 € 276.000 € 266.000 €
Price per Unit - - 5.000 € 5.000 € 5.000 €
Type of Unit License
Number of Units - - 40 100 150
TOTAL Expected Revenues - - 200.000 € 500.000 € 750.000 €
CASH FLOW REQUIRED (REVENUES-COSTS) -271.000 € -269.000 € -66.000 € 224.000 € 484.000 €
TOTAL profits (CAPITAL required) for five years 102.000 €

SECTION 2: QUALITATIVE FACTORS

1 Dimension of identified target groups
Since the European IT market is about 260 billion € and the target of FUSION is to reach 750.000 € in revenues, FUSION is estimated to acquire a small proportion of the entire market (approximately 1/0.000).
2 Evaluation of financial Risks for R&D result
The major financial risks are the following:

- Sales are at a lower level than those expected.

Probability: medium

Impact: high

- A free toolset for Semantic Enterprise Application Integration enters the market.

Probability: low

Impact: high

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.  EUROSTARS Call / EUREKA Programme

2.  Research for the benefit of specific groups / Capacities Theme / FP7 Programme

3.  ICT PSP / FP7 Programme

2 National Funding
1.  Collaboration Programme

2.  Research for the benefit of SMEs Programme

3 Private funding
1.  Venture Capital

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)…
FUSION research results are promising at a commercial level and address a real market demand, that of Enterprise Application Integration. However, the requested total capital, profit margin, competition levels in IT services and the recent economic global downturn dictate that more R&D towards the above direction is needed prior to commercial exploitation.

Decision of evaluation (Please tick as appropriate)

The R&D result needs moderate revisions


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