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
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
Fixed costs 2000 2000 2000 2000 2000
Personnel 300,000 100,000 5000 5000 5000
Other running costs 5000 2000 2000 2000 2000
Marketing costs 50,000 50,000 30,000 30,000 25,000
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
Detailed comment

The product is aimed at all organizations that create, distribute or use satellite images, or those that work with medical images.  These are:

  • Producers of satellite images
  • Users such as government agencies
  • Map producers
  • Research organizations
  • Hospitals and medical research laboratories

 

 

4 Evaluation of financial Risks for R&D result
Detailed comment

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.

3.

4.

 

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.

2.

3.

 

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.

2.

3.

 

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)…
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

 

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