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 not protected by patent or any type of IP protection. It is compulsory for the researcher to apply for granting such a protection as soon as possible. In order to protect the interests of the inventor it is advisable applications for utility model 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 product is in the prototype stage, working, so little amendments to be expected in case of entering manufacturing stage. Additional research and engineering is necessary for broadening the implementation range of the device.
|…in terms of mass production|
|For entering manufacturing stage the initial investment is about € 600,000. The differentiation of the product will need additional investments for implementation in the production batch.
|… in terms of marketing|
|The market is nationwide for the first stage, which could be widened to Europe wide for the next stages. The demands are expected to be growing and stabile and the initial marketing costs could be estimated at approx € 30,000, rising up to € 50,000 per year in 4-th and 5-th year. Promotion at the European market could involve participation in specialized events, exhibitions, fairs, conferences, etc.
|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||€ 290,000||€ 320,000||€ 350,000||€ 350,000||€ 350,000|
|Personnel||€ 25,000||€ 30,000||€ 30,000||€ 40,000||€ 50,000|
|Other running costs||€ 190,000||€ 190,000||€ 190,000||€ 190,000||€ 220,000|
|Marketing costs||€ 30,000||€ 35,000||€ 50,000||€ 50,000||€ 50,000|
|TOTAL EXPECTED COSTS||€ 535,000||€ 575,000||€ 620,000||€ 630,000||€ 670,000|
|Price per Unit (pc EXW)||€ 28||€ 28||€ 30||€ 30||€ 33|
|Type of Unit||Per piece|
|Number of Units||20,000||25,000||30,000||35,000||50,000|
|TOTAL Expected Revenues||€ 560,000||€ 700,000||€ 900,000||€ 1,150,000||€ 1,650,000|
|CASH FLOW REQUIRED (REVENUES-COSTS)||€ 25,000||€ 125,000||€ 280,000||€ 520,000||€ 980,000|
|TOTAL CAPITAL required for five years||€ 535,000|
SECTION 2: QUALITATIVE FACTORS
|3||Dimension of identified target groups|
|The target groups are mainly two – individuals and servicing/technician staff of different companies, including emergencies dealing organizations and structures. With constantly growing sales of the cellular phones the demand of such emergency charging devices will also follow up. The multimillion mobile phone market will easily absorb the modest projected starting quantities of the emergency charging device. The future company could reach 15-20% national market share.
|4||Evaluation of financial Risks for R&D result|
|The financial risks are concentrated in extreme level of competition at the market. Numerous manufacturers offer many types and modifications of emergency phone chargers worldwide, so the marketing strategy is of a great importance for the project.
Certain risk exists, to some extend, by the constantly falling prizes of such products, due to their nature.
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. This project is suitable for European funding, such as grants, business angels, etc. The initial investment is not so big.|
|2. National Funding|
|1. Possible funding by a company – investor, seeking to provide venture capital. Although the technology is vastly used, the product itself is interesting and has a potential of a great demand.
|3. Private funding|
|1. A company – retailer of such products, which wants to have an innovative device in its portfolio, manufactured in the European Community and with European origin, as per the regulations.
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)…|
|All approaches could be used for creating the manufacturing company of the emergency charging device. The researcher is interested in creation of a Joint venture, based on the product or granting a license/manufacturing agreement or any kind of technical cooperation. The future company will face heavy competition and large, but occupied by many manufacturers market. But the product has its own advantages, reached at an acceptable price.
Decision of evaluation
- The R&D has an average potential of exploitation