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
The costs for IPR-protection through a utility model are estimated to amount to about 700 – 800 EUR.

The costs for patenting in BG would be higher, up to 2000 EUR, but patenting would be reasonable only if further research is performed on isolating the LEDs so as to have them integrated into the paper in the process of paper-making.

 

…in terms of product development
In terms of product development costs could hardly be assessed at this stage. This is mainly due to the fact that the product would have to be tailored to the needs of the client. Furthermore, the researcher has made just one prototype, and models of different sizes would have to be made to evaluate the costs of the product.

 

…in terms of mass production
For mass production of work pieces of 50×100 cm by size, about 20 000 EUR would be needed. This includes:

-          the tank for the paper pulp

-          the machine for grinding the paper

-          de construction of the frames

-          drying machines

The costs for materials go for:

-          recycled paper

-          optic fibers

-          LEDs

For a work piece of 50×100 cm by size the materials needed include about 10 m of optic fiber, 4 LEDs, 5 EUR for cables, and about 15 EUR for the electrical part of the product.

 

… in terms of marketing
Marketing could be done through studios for interior design, public presentations, exhibitions and show rooms, etc.

The costs for marketing for the first year could be estimated to about 80 000 EUR.

 

 

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

Personnel

Other running costs

Marketing costs

TOTAL EXPECTED COSTS

Price per Unit

Type of Unit

Number of Units

TOTAL Expected Revenues

CASH FLOW REQUIRED (REVENUES-COSTS)

TOTAL CAPITAL required for five years

Prior to making the financial calculations, it has to be determined what size and type of products could be produced, e.g. framed pictures, large pieces for covering large areas as if with wall paper, etc. also research on the machines for the production site should be made the price of whic is not known at present. The LED components of the product are to be imported as the tiny and finest ones are not produced on the Bulgarian market. The volume of sales and its dynamics over the first couple of years have to be based on marketing research and detailed study of prospective clients, morover that the sales target the EU market right away, not the national one.

 

 

SECTION 2: QUALITATIVE FACTORS

 

3

Dimension of identified target groups
The target groups would initially include:

-          hotels, spa centres

-          business centres with conference and exhibition halls

-          individual households of middle class people

-          public centres with musical halls for concerts

-          art studios, design studios.

Having in mind that the researcher would like to target the EU market rather than the national, the latter being a limited one, marketing research would be needed to determine the dimension of the target groups, especially for the first couple of years of the business.

 

 

 

4

Evaluation of financial Risks for R&D result
The mass production of this type of product does not require big initial investments and hence the financial risk and the successful sales of the product are highly dependent on the marketing. As this is a product in the area of art and design, the perception of the product is subjective and needs very fine marketing to promote not only the practical benefits of the product but also its aesthetic advantages and how the product could bring stake to the overall interior for which it is being promoted. All this is to be done on a case-by-case basis and requires good partnership with design studios.

 

 

 

 

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. … EU funding programmes – N?A

2.

3.

4.

 

2. National Funding

1. … N/A

2.

3.

 

3. Private funding

1. …Own funding

2. … Investment, bank loan

3. …Joint venture with a design studio

 

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)…
 

Being and art and design product it could hardly fall in the priorities of EU or national funding programmes, except as a partner or subcontractor under projects for cultural heritage for instance. The business could be developed with the help of own funding or bank loan, or in partnership (e.g. joint venture) with an art and design studio. Prior to that the diversification of the product has to be determined in order to have a clear portfolio of products, e.g. framed work pieces of art, a product for covering big surfaces as if with wallpaper, etc. This is very important as it is directly linked with the dimension of the application of the product and hence with sales and wider target groups.

 

 

 

Decision of evaluation (Please keep only the appropriate)

  • The R&D result needs minor revisions
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