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|
|It will be necessary to apply for a trade mark protection which is estimated to cost about 1000 Euro.
|…in terms of product development|
|For production software, it is assumed that the whole software will have to be redeveloped for a client server environment, compliant with modern computing standards and also accepting all standardized image formats. Further, a graphical user interface will have to be redeveloped.
To achieve all this, an effort of 4 person years is estimated, along with consulting from the technical university of Sofia.
|…in terms of mass production|
|There is no mass production, the completed software will be licensed.
|… in terms of marketing|
|Marketing effort will be necessary to establish distribution channels and find customers.|
|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|
|Other running costs||5000||2000||2000||2000||2000|
|TOTAL EXPECTED COSTS||357,000||157,000||39,000||39,000||34,000|
|Price per Unit||400||400||400||400||400|
|Type of Unit||Software license|
|Number of Units||0||50||650||1100||1200|
|TOTAL Expected Revenues||0||20,000||260,000||440,000||480,000|
|CASH FLOW REQUIRED (REVENUES-COSTS)||-357,000||-137,000||221,000||401,000||446,000|
|TOTAL CAPITAL required for five years||Profit: 574,000 Euro|
SECTION 2: QUALITATIVE FACTORS
|3||Dimension of identified target groups|
The product is aimed at all organizations that create, distribute or use satellite images, or those that work with medical images. These are:
|4||Evaluation of financial Risks for R&D result|
There are already similar products on the market although with lower performance. The risk is that the market is too saturated in order to be able to absorb a substitution product. This could happen if the unique sales proposition is not strong enough to convince users to replace their existing software. However, the price is low enough that this could be really be an obstacle.
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 is not a development that could be funded with European funds.
|2. National Funding|
|1. …There could be national funding in the sense of supporting national competitiveness but in view of the quick ROI, this would likely not be applicable.
|3. Private funding|
|1. …This is a typical case for venture capital funding. If a sound business plan is developed, it would be possible to acquire venture capital financing that could be attracted with a good exit strategy.
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)…|
|In order to develop this product, it is recommended to create a new company such as a spin off of the technical university of Sofia that has developed the first prototype. In view of the promise of this product, it would be realistic to expect venture capital funding and the company could be sold with a high profit after 5 – 8 years.
However, it will be necessary to develop a detailed, sound and convincing business plan.
Decision of evaluation (Please keep only the appropriate)
- The R&D result needs minor revisions