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 product is not protected by any means of IPR. In order to protect the interests of the inventor it is advisable applications 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 research is at idea stage. The next stage is to prepare a prototype to be tested in full and to make the necessary amendments. A working prototype will help also in more precise calculation of the total costs necessary for the production of such equipment.

 

…in terms of mass production
For starting a small scale production the company will need 250 -350 000 EUR. This will allow manufacturing of 150 – 200 pcs of snow pressing 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 15 000 EUR per year, while European could rise up to 55 000 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

€ 450,000

Personnel

€ 38,000

Other running costs

€ 250,000

Marketing costs

€ 35,000

TOTAL EXPECTED COSTS

€ 773,000

Price per system

€ 4500

Type of Unit

Per piece, ready to mount

Number of Units

120

TOTAL Expected Revenues

€ 540,000

CASH FLOW REQUIRED (REVENUES-COSTS)

€ -233,000

TOTAL CAPITAL required for five years

€ 233,000

 

NB : More precise calculations could be presented after manufacturing and testing at least at prototype level. The prototype costs will help evaluation and confirmation of the five year costs span.

SECTION 2: QUALITATIVE FACTORS

 

3

Dimension of identified target groups
The costs for snow removal in the countries with heavy snowfall are enormous. In the cities the snow clearing expense for each season is an important part of the seasonal public works budget and each snow storm provokes a major logistical operation involving thousands of employees working in shifts 24 hours a day. The effort can vary greatly depending on the amount of snow. Montreal, Canada for example gets about 225 cm of snow each winter and spends more than $128 million Canadian dollars each year to remove it. Toronto,  with about 50 per cent more population and 28 per cent more road surface, gets only 125 cm of snow a year and spends about half that. The higher cost in Montreal is due to the need to perform “snow removal” as opposed to simple “snow clearing” necessitated by both the high snowfall amounts and fewer melting days.

In Helsinki, Finland, the amount of snow transported from streets and properties to snow dump sites during the winter 1009-2010 was 210,000 truckloads, equaling over 3 million cubic meters of virgin snow. It is estimated that Canada spends $1 billion on snow removal!

These are just two examples of the problem which could be facilitated with the help of the proposed equipment.

 

 

 

4

Evaluation of financial Risks for R&D result
The great demand, which could be developed suppresses the financial risks. If the company finds a potential investor and/or cooperation in the face of a specialized automobile manufacturing company, the marketing goals could be easily achieved. The lower sale price will also have its positive influence on the risks.

 

 

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.       A specialized automobile company – manufacturer, interested in implementation of the idea in its production line, which could lead to a new stage of their production.

2.       A company manufacturer of specialized snow cleaning equipment, interested in using the know-how or the ready product for direct implementation and creating a new line.

 

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)…
Most suitable opportunity could be the establishment of a technical co-operation/manufacturing agreement with a leading, if possible, company – manufacturer of specialized snow clearing equipment for direct implementation of the know-how in their production line batch. As minimum the researcher could seek signing a License Agreement with such manufacturer and granting a license.

 

 

Decision of evaluation (Please keep only the appropriate)

  • The R&D has a high potential of exploitation
Bookmark the permalink. Follow any comments here with the RSS feed for this post. Post a comment or leave a trackback: Trackback URL.

Post a Comment

You must be logged in to post a comment.

Request a proposal

Valorisation Plan Authors

Related Documents

There in no related documents

Visit the other applications of the INTERVALUE Platform: R&D Repository | IP Agreements

© 2009-2010 INTERVALUE Project