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 euro = total IPR = 2.550  euro
…in terms of product development
A system integrator for the integration of four modules 10PM x 4000 = 40.000

A web developer for the synthesis of modules into a single web service 10PM x 30.000 = 30.000

An experience tester to implement integration testing 5PM x 5000 = 25000

Total cost 95.000 euro

…in terms of mass production
There are no mass production costs
… in terms of marketing
Significant marketing investment at the beginning of year two where the product is planned to be launched. The marketing cost involves promotion actions to users and promotion actions to potential client’s news agencies, advertising companies and market researchers. The marketing cost for year two must be raised for 40.000 euro, while for the rest of the years should remain stable at 10.000 per 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 95000 60000 78000 96000 120000
Other running costs 10000 5000 5000 5000 5000
Marketing costs 40000 10000 10000 10000
TOTAL EXPECTED COSTS 155000 175000 183000 231000 275000
Price per Unit 2000 2000 2000 2000 2000
Number of Units 0 100 130 160 200
TOTAL Expected Revenues 0 200000 260000 320000 400000
CASH FLOW REQUIRED (REVENUES-COSTS) -155000 25000 77000 89000 125000
TOTAL CAPITAL required for five years 155.000

SECTION 2: QUALITATIVE FACTORS

3 Dimension of identified target groups
The estimated request of user profiles are:

News agency requests: 200

Advertisement agency requests: 200

Market research requests:190

4 Evaluation of financial Risks for R&D result
The project has a high implementation risk during the first year of business planning. The assumption that the final product will be ready on time and on budget in twelve months puts into a risk the feasibility of the business venture. Appropriate risk management techniques with alternative corrective actions must be planned carefully to ensure proper implementation.

SECTION 3: IDENTIFICATION OF FINANCING SOURCES

1. European Funding

Define relevance of the product with the following potential funding sources and comment

FP7 STREP

FP7 IST

2. National Funding
Low availability of research programmes at national level.
3. Private funding
Venture capitals, joint ventures with private funding from large web service providers
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)…
A joint venture with large web service provider will be the best funding mechanism, since the promotion through well established providers is very crucial to the success of this project. While the initial investment is relatively low, potential investor must be able also to facilitate market access and intense presence on the web.

Decision of evaluation (Please keep only the appropriate)

The R&D has a high potential of exploitation

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