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 any means of IPR. 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 at prototype stage. The next stage will be a pilot batch production. The prototype is fully working and tested, so little amendments are expected.
|…in terms of mass production|
|For starting a small scale production the company will need 450 – 650 000 EUR. This will allow manufacturing of 2500-3000 pcs of automatic clutch systems per year.
|… in terms of marketing|
|The initial markets comprise of two parts – national and European. The promotional national marketing costs could be estimated at 25 000 EUR per year, while European could rise up to 45- 50 000 EUR annually, 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||€ 310,000||€ 150,000||€ 180,000||€ 180,000||€ 180,000|
|Personnel||€ 26,000||€ 26,000||€ 26,000||€ 28,000||€ 28,000|
|Other running costs||€ 250,000||€ 250,000||€ 250,000||€ 210,000||€ 210,000|
|Marketing costs||€ 25,000||€ 25,000||€ 55,000||€ 55,000||€ 55,000|
|TOTAL EXPECTED COSTS||€ 611,000||€ 451,000||€ 511,000||€ 473,000||€ 473,000|
|Price per Unit (MT)||€ 360||€ 380||€ 410||€ 470||€ 490|
|Type of Unit||Per piece, ready to mount|
|Number of Units||1700||1900||2400||2800||3000|
|TOTAL Expected Revenues||€ 612,000||€ 271,000||€ 984,000||€ 1,316,000||€ 1,470,000|
|CASH FLOW REQUIRED (REVENUES-COSTS)||€ 1,000||€ 461,000||€ 473,000||€ 843,000||€ 997,000|
|TOTAL CAPITAL required for five years||€ 611,000|
SECTION 2: QUALITATIVE FACTORS
|3||Dimension of identified target groups|
|The European annual production is over 3 million just passenger cars and related. Looking at just 1% of this quantity – this is more than 30000 automobiles, that could be supplied with automatic clutch systems, just to start. The national market itself could easily consume the total production output for the first years. The absence of similar proposals, at the prospected price range on the local market, makes the position of the manufacturer attractive for an excellent start.
|4||Evaluation of financial Risks for R&D result|
|With lack of competitors (a few companies) and the great demand, which could be developed, the financial risks are low to none. If the company finds a potential investor and/or cooperation in the face of an automobile manufacturing company, the marketing goals could be easily achieved. The product could develop a very high demand, due to its advantages for disabled people.|
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. The R&D result is suitable for European funding, such as grants, business angels, etc, due to relatively small initial capital needed.|
|2. National Funding|
|1. Possible funding by a large company – investor, seeking to provide venture capital. Since the product/derivates are very interesting, with great demand and good return, it could be a big opportunity.
2. National funding of innovative products development.
|3. Private funding|
|1. An automotive or related company, interested in implementation of the automatic clutch module in its production line, which could lead to a new stage of their production.
2. Motor manufacturing company, 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 automatic clutch module in their production line batch. As minimum NITI 95 company could seek signing a License Agreement with such manufacturer or a motor manufacturing company, which could benefit of its product and know-how.|
Decision of evaluation
- The R&D has a high potential of exploitation