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 product is a compilation of several new technologies and can not be patented as there is no significant novelty in terms of technology, know-how etc. It can be registered as utility model under Bulgarian law that does not give sufficient t protection on the foreign markets. The software can be protected by copy right only.

The costs for the mentioned IPR are lower that 2000 EUR.

 

…in terms of product development
The product needs to be further developed. According to the initial estimation in order to be led to final stage the product would require about 300 000 EUR in 18 months, including salaries for specialists, test equipment and prototyping.

 

…in terms of mass production
For mass production it may be applied approach for starting the production by utilizing subcontractors and external suppliers and reaching to own production in 5 years term.

 

 

 

… in terms of marketing
The market is global, but initially the local and EU market will be targeted. The marketing costs should involve promotion actions. The expected initial cost is of approx € 30,000 per annum, incl. participation in 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

20000 20000 500000 500000 250000

Personnel

80000 80000 120000 130000 150000

Other running costs

50000 150000 750000 900000 1000000

Marketing costs

30000 30000 40000 40000 50000

TOTAL EXPECTED COSTS

180000 280000 1410000 1570000 1450000

Price per Unit

180000 180000 200000 250000 250000

Type of Unit

System

Number of Units

1

3

15

18

20

TOTAL Expected Revenues

180000 540000 3000000 4500000 5000000

CASH FLOW REQUIRED (REVENUES-COSTS)

0 260000 1590000 2930000 3550000

TOTAL CAPITAL required for five years

320 000 EUR

 

SECTION 2: QUALITATIVE FACTORS

 

3

Dimension of identified target groups
The target group is large and potentially covers all the towns and cities in EU.

Product has to start with small towns or areas of big cities where it can be demonstrated and tested in the beginning.

 

 

4

Evaluation of financial Risks for R&D result
The product is still in development phase. Thus a negative financial result could be expected in the first year of the establishment of the business.

As in its nature the product is combination of existing technologies that major risk for R&D is expected in the development of the software and special controllers and communication devices. However the risk for R&D is evaluated as very low and it is more related to the time needed for complete development of the system, that is estimated at 2,5 years for the worst scenario.

 

 

 

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. Eco-innovation Programme of the EC – average potential for financing of introduction of new energy-efficiency product.

 

2. National Funding

Operational Programme “Competitiveness”, Bulgaria – high potential for financing under the scheme for start-up companies.

 

 

3. Private funding

Financing from private compny in the sector or venture capital – average probability for financing

 

4. Other

The product may be developed by the present team of Ewron by bank loans but it will lead to longer term for development and would reach 7-8 years for reaching the results, calculated above.

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 best and easiest financing could be obtained by application with a project under a call for proposals under OP Competitiveness of the Bulgarian Economy.

Alternative approach with high feasibility is looking for private investor – foreign and local and reaching licensing or manufacturing agreement.

 

 

Decision of evaluation (Please keep only the appropriate)

  • The R&D result needs minor revisions
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