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
The total costs of IPR protection will be of 4 950 000 HUF (~18500 EUR) between June 2011. and December, 2013. The costs are divided in the following way:

-           Patent application, Hungary: 500 000 HUF

-           PCT I and II. phases: 2 300 000 HUF

-           Procedures before national phases, EP regional application: 1 300 000 HUF

-           USA national phase application: 850 000 HUF

-           Annual fees: 70 000 HUF (for the examined period)

…in terms of product development
Product development is differing at each clients to be served – the system is under continuous development, each case is different. Meanwhile the core of the system is an algorithm to be elaborated during the realization of the pilot project.

The main steps of product development are as follows:

-           The realization of a pilot project

-           Software algorithm script writing

-           Demonstrations and business to business sales activity to establish business partnerships with the users (service providers).

The main steps of service to be offered:

-           Sales activities – approaching service providers

-           Assessment of monitored area

-           Designation of measuring stations

-           Completion of measuring stations

-           Elaboration of measurement plan

-           Documentation of measured data

-           Monitoring of project results

…in terms of mass production
There will not be any products to be mass produced by the spin-off.
… in terms of marketing
Marketing activities are reduced to the support of the service providers who handle marketing expenses.

 

 

 

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*

-4125 -2300 -2150 0 0

Personnel*

-4960 -7680 -12800 -15360 -15360

Other running costs*

-100 -70 0 0 0

Marketing costs*

-1000 -100 -75 -75 -75

TOTAL EXPECTED COSTS*

-10185 -10150 -15025 -15435 -15435

Price per Unit*

1000 2000 2500 2500 2500

Type of Unit

elaboration of monitoring plans

Number of Units

0 500 500 600 700

TOTAL Expected Revenues*

1000 6500 13000 15600 15700

CASH FLOW REQUIRED (REVENUES-COSTS)*

9185 3650 2025 -165 -265

TOTAL CAPITAL required for five years*

14430

* in thousand HUF

SECTION 2: QUALITATIVE FACTORS

3

Dimension of identified target groups
The target groups are consisting of the service providers who offer noise monitoring and noise mapping services. Regarding the Hungarian market, the following firms are in sight:

-          Fonor Kft.

-          Enviroplus Kft.

-          VibroComp Kft.

The service is to be sold via business to business sales activity and the end clients are not to be reached by the spin-off itself.

 

 

 

 

 

4

Evaluation of financial Risks for R&D result
The most important financial risk is the ratio of working hours versus the price of the service provided by the spin-off. The product cannot be expensive as it is only covering a few steps of noise mapping and monitoring (even though it offers a solution that leads to a higher level of competitiveness at the customer service providers). A detailed market study has to be elaborated that highlights the possibilities in pricing and positioning. The market study has to determine the value of these services in an ordinary case – tasks that have not been separated from other tasks in noise mapping and monitoring before. Also the added value has to be determined of these services in comparison with the ordinary practice. The spin-off’s success can be maximized in case it offers usual services completed with value added extras (real-time source-selective monitoring).

 

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

European funding will be used to finance business planning and market studying (with the aid of the Budapest University of Technology and Economics).

 

2. National Funding

 

 

3. Private funding

The service providers have to invest in the equipments used in the establishment of the spin-off’s services. Also the pilot project has to be financed by the spin-off itself or the service provider.

 

4. Other

The Budapest University of Technology and Economics is supporting the spin-off by having 30-40% option and financing the business and market planning of the newly forming company.

 

 

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)…
 considering the funding opportunities for the exploitation, spin-off, further research, cost/benefit analysis, and financial projections, type of collaboration identified (ie. Licensing Agreement, Technical Cooperation, JV, Manufacturing Agreement, Commercial Agreement with Technical Assistance, Creation of a spin-off, joint further development, etc.)

The spin-off will act as external expert of noise mapping and monitoring companies. IP rights will belong to the spin-off as well as copyright of the software algorithm written to realize the coordination of noise mapping and monitoring devices. The spin-off will work with a staff of two, who may sign commercial agreements with service providers (customers). The product is a service and joint documentation and monitoring of project results. This is the simplest scenario where a total sum of 14 million HUF is needed according to our estimations to cover the pilot project’s expenses, IP costs and the first two year’s operation. In this simple model, the project can be self-supporting by the end of 2013 – after this date the most important costs will be the hourly fees or salaries of the two people in the spin-off and the operations will depend on the expert activities of the staff of two.

Also joint further development will be taken place during the spin-off’s operation with the Budapest University of Technology and Economics and the customers.

Scenario 2 would need further refinements regarding market demand and operation costs too – calculations can be regarded as guidelines for further estimations.

 

Decision of evaluation (Please keep only the appropriate)

  • The R&D has a fairly high potential of exploitation.
  • R&D result needs moderate revisions.

 

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