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 copyright protected as a service produced by the Lab of Petrochemical Technology at Aristotle University of Thessaloniki (no cost) |
|
| …in terms of product development
The product is already in an advanced state of development |
|
| …in terms of mass production
For the industrialization of the product and start of mass production the employment of 2 chemical engineers could be sufficient (around 50-80000 €/year) |
|
| … in terms of marketingThe market is scattered and global. The marketing costs involve promotion actions to users and should be around 10 000 € per year, for leaflets, advertising in magazines and web sites, participation in exhibitions, testimonies, conferences and show 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 | 20000 | 25000 | 35000 | 35000 | 35000 | |
| Personnel | 50000 | 60000 | 80000 | 80000 | 80000 | |
| Other running costs | 10000 | 10000 | 15000 | 15000 | 15000 | |
| Marketing costs | 10000 | 10000 | 10000 | 10000 | 10000 | |
| TOTAL EXPECTED COSTS | 90000 | 105000 | 140000 | 140000 | 140000 | |
| Price per Unit | 5000 | 5000 | 5000 | 5000 | 5000 | |
| Type of Unit | 1tone of the adsorbent material | |||||
| Number of Units | 25 | 35 | 40 | 40 | 40 | |
| TOTAL Expected Revenues | 125000 | 175000 | 200000 | 200000 | 200000 | |
| CASH FLOW REQUIRED (REVENUES-COSTS) | ||||||
| TOTAL CAPITAL required for five years | ||||||
SECTION 2: QUALITATIVE FACTORS
| 3 | Dimension of identified target groups |
| Considering a target of 1500 plants, i.e. about 50% of the number of electrochemical plants globally, targeting probably to a specific geographical area (e.g. Asia) we assume that the market finally gained is 180 units, thus meaning about 12% of the target market. However, the size of the market is growing rapidly, especially in Asia, which is translated with larger sales potential. | |
| 4 | Evaluation of financial Risks for R&D result |
| The product is impressively efficient but new to the market and thus there is a slight possibility that the market might not be mature enough to accept it. Furthermore, the geographical diversity of the users is an obvious obstacle to the product’s promotion. Therefore, assuming that sales during the first year is an unachievable goal, the marketing costs, that is 10 000 € , constitute the financial risks for the product. | |
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 |
| - EUREKA’s Eurostars Programme is the first European funding and support programme to be specifically dedicated to small and medium-sized enterprises.
- INTERREG IVC Programme provides funding for interregional cooperation across Europe and lasts from 2007-2013. The overall objective of the INTERREG IVC Programme is to improve the effectiveness of regional policies and instruments. The areas of support are innovation, environment and risk prevention. |
| 2. National Funding |
| - National Strategic Reference Framework (ΕΣΠΑ) could be used for development as well as marketing costs
- General Secretariat for Research and Technology (GSRT) |
| 3. Private funding |
| - Personal capital
- Joint venture with potential investor |
SECTION 3: FINAL EVALUATION
| This innovative product has the essential requirements to become a successful entrepreneurial activity, with significant growth rates and a good return on risk capital. The creation of a spin-off, based on joint agreement for technology, licensing and market exploitation, is under consideration although a joint venture with a private investor would be much appreciated. Finally, due to the fact that the potential market is very extensive and has a worldwide importance, it could be useful to consider the granting of licenses to reach more remote areas. |
Decision of evaluation (Please keep only the appropriate)
- The R&D has a high potential of exploitation
- The R&D result needs minor revisions
Vaios Alexiadis
