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
In terms of IPR protection the proposed product ha s already been taken care of – there are already national, European and Canadian applications. In order to protect the interests of the inventor, it is advisable to consider broadening of the patent protection in additional regions, payment of government fees and also requesting specialised consultancy on IPR management.

Estimated value of surcharge for validation of this first patents areas in all European countries will cost about 65 000.00 Euros.

 

…in terms of product development

The further development foresees:

  • Preparation of a computer model to design a specialized program (CAD CAM software) together with visual and simulation models,
  • Preparation of technical documentation, assistance with design details, technical documentation for the elaboration of details
    Developing a computer model for presentation handouts

Ø  Field tests including speed tests at different conditions with measurement apparatus, telemetric tests with telemetric facilities  to prove the behavior and efficiency of the device will be also needed;

These efforts will require outsourcing to specialised teams and close collaboration with narrow specialist. The costs are estimated at about 75 000.00 Euros.

…in terms of mass production
This stage requires means for:

Final field tests: Purchase or rental cars for two pieces of test patterns and production of details on preset parameters and installation details in the test models (37 000.00 Euros)

Prototype finalization: Testing of prototypes and taking parameters, benchmarking (15 000.00 Euros)

Pilot application: Official tests in laboratories / Committee to establish the actual condition (up to 45 000.00 Euros)

… in terms of marketing
Estimated value of innovation according to market opportunities for demonstration and use after attracting the attention of potential customers-manufacturers, the cost of consulting and professional fees are estimated up to 20 000.00 Euros.

 

 

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

153 000

Personnel

36 000

Other running costs

20 000

Marketing costs

10 000

TOTAL EXPECTED COSTS

209 000

Price per Unit

1 *

Type of Unit

Varies according to the concrete automobile production line.

Number of Units

> 10 000 000

TOTAL Expected Revenues

NA

10 000 000

10 000 000

10 000 000

10 000 000 **

CASH FLOW REQUIRED (REVENUES-COSTS)

209 000

9 500 000

10 000 000

10 000 000

10 000 000

TOTAL CAPITAL required for five years

NA -  45 000 000 (for 5 years)

The patent rights allow 15 years of protection and rights management;)

* – The plan is based on the intention of the researcher to develop his invention up to pilot production stage, patent it and then pursue licensing agreement with strategic international automobile manufacturer. Therefore the majority of costs for development are concentrated within the first year of the project. The licensing also explains the rapid sales volume foreseen within the following 2-5  years as the invention is meant for industrial application for mass manufacturing;

** – The patent rights allow 15 years of protection and rights management;)

 

DRAFT BUDGET for DEVELOPMENT

/estimated expenditures/

 

 

Type of works and type of expenses

 

explanation

 

summary

Part 1. Management costs and patent protection

1. Management staff expenditures

Two persons – if necessary under the implementation of EU programs

 

2. Fees for consultants of car producing companies, professors, associate professors and other professionals - If / where necessary for the project

- In the case of designing for serial producing

3. Estimated value of surcharge for validation of this patent in European countries and Canada/where application filed/

Payment of government fees and patent attorneys for the countries

About 65 000 euro

4. Preparation of statement on the economic impact of the patent application

Financial analyses and business plan  – if necessary

  Part 1 – amount 65 000 euro
Part II.Technical costs of the project

5. Final completion of first prototype

Improvement/ finishing works of the first prototype /in three different constructions/ and new testing

/Front wheel drive car – Citroen Saxo 1,4/

3 000 euro

6. Rental premises /office and work shop

A maximum of 100 square meters at the average rental price of 15 euro / sq.m. per month /   – if equipped

Maximum

for 1 year

18     000 euro

7. Purchase/rent of cars for producing and testing of prototypes two different cars /second hand/ at average market price from 1000 euro to 3000 euro:

-          One car RWD

-          One car AW tree D

Up to 12 000.00 euro

8. Design and Production of details on preset parameters and installation of details in the test models CAD-CAM designing – TU of Sofia,

Technical equipment,

Raw materials,

Special Instrumentation and tools

-up to 35 000 euro

- up to 2 500 euro

- up to 3 000 euro

- up to 15 000 euro

9. Testing of prototypes and taking parameters, benchmarking Includes taxes of race track using in Bulgaria, specialized instrumentation and fees for race drivers of cars and insurance

5 000 euro

10. Demonstrations of prototypes Documentation and comparative measurement of certain parameters of the same car
- as a serial street car / normal car
- The same car fitted with new construction

5 000 euro

  Part 2 – amount

98 500 euro

   

 

   

 

SUMMARY OF ALL EXPENSES

as described above

163 500 euro

 

 

SECTION 2: QUALITATIVE FACTORS

 

3

Dimension of identified target groups

Annually more than 10 000 000 vehicles are released on the global market / European market only/. The absence of similar such simple analogues and having in mind the prospected price range makes the position of the manufacturer attractive for a promising start.

 

4

Evaluation of financial Risks for R&D result
Planned expenditure on the project are consistent with some of the basic requirements for such projects to apply for European development programs for innovation.

It is crucial to insure the maintenance and management of the international patent protection as the invention is not facing significant competition and thus is a promising innovation. If the company finds funding and/or potential investor and/or cooperation in the face of an automobile manufacturing company, the marketing goals could be easily achieved.

 

 

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 – the cross-cutting initiative provides funding for projects in various sectors that mitigate environmental impacts or promote a more efficient use of resources. Priority areas include material recycling, buildings, the food and drink sector as well as greener business.

2.       7th Framework Programme of the EU – The “Research for the benefit of SMEs” scheme helps them outsource research, increase their research efforts, extend their networks, better exploit research results and acquire technological know how, bridging the gap between research and innovation.

Further details could be viewed here: http://ec.europa.eu/research/sme-techweb/index_en.cfm

Searching for project partners could be started from here http://cordis.europa.eu/partners/ or via the local Enterprise Europe network representatives.

 

 

2. National Funding

1. OP Competitiveness   – there are a couple of calls that could be suitable for supporting the project:

ü  Call for proposals BG161PO003-2.3.01 “Investments in “green industry”

ü  Support for research and development activities in Bulgarian enterprises”.

ü  “Development of innovative start-up companies by support for commercialization of innovative products, processes and services”.

 

3. Private funding

1. BBAN- The Bulgarian Business Angels Network. The main activity of the Network is to match the capital seeking entrepreneur with the informal investor.

 

 

4. Other

It is reasonable to review single possibilities for strategic partnerships for further development.

For example automotive or related company could be attracted for  exploring the possibilities of implementation of the proposed invention in production line; Locally, the Great Wall newly established facilities are an option, The Balkancar enterprises are also an option for exploring further applications.

Another local option interesting in terms of developing the electro-vehicle application potential could be collaboration with the EVIC – Electric vehicles industrial cluster which unites members are primarily companies, operating in the field of design and production of components, spare parts and services for conversion and production of electric vehicles.

Globally, practically all automobile or motor manufacturing companies could , interested in using the know-how or the ready product for direct implementation in their automobiles. The automatic clutch module is a great substitute of the heavy and costly automatic gearbox, thus making the product of high interest for additional private funding and other investment funds.

 

 

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 co-operation/manufacturing agreement with a leading, if possible, automobile manufacturing company for direct implementation of the mounting automotive aggregate in their production line.

Licensing agreements with such manufacturer or a motor manufacturing company, which could benefit of its product and know-how is also of high possibility.

The researcher may consider benefiting the national an and international funding programmers which support research and innovations in order to fully develop and realize its invention.

 

 

Decision of evaluation (Please keep only the appropriate)

  • The R&D has a high potential of exploitation

 

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