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
No significant costs are foreseen at the moment for IPR protection as the only cost envisaged is the cost for software copyright. In Italy It requires a communication to the national copyright agency (SIAE). Patenting of software only is not allowed in Italy. Plans for patenting a surveillance device (software + hardware) can be explored in the future. 
…in terms of product development
The software requires circa one year of development by two full-time programmers. At least 50000€ are thus needed for the final engineering and testing phase.
…in terms of mass production
Costs of mass production of software are negligible. The software can fit a CD-ROM disc.
… in terms of marketing
During the start-up years of the spin-off a limited marketing campaign is foreseen. This has been chosen for reducing capital exposure and concentrate efforts on the development. The first year will require at least 10000€ for internet-based marketing (web-site), fliers, logos, etc.  From the second year the marketing will be more aggressive, including participation to fairs and directly promoting the product to security systems installers and camera vendors. The estimated cost starting from the second year is at least 20000€.

 

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 (A)

10000

15000

20000

25000

Personnel

50000

50000

75000

300000

Other running costs (B)

2500

5000

5000

10000

Marketing costs

10000

20000

25000

25000

TOTAL EXPECTED COSTS (A+B)

72500

90000

125000

360000

Price per Unit

18000

18000

18000

18000

Type of Unit

Surveillance systems

Number of Units

3

10

20

50

TOTAL Expected Revenues

54000

180000

360000

900000

CASH FLOW REQUIRED (REVENUES-COSTS) Operating Cash Flow

-18500

90000

235000

540000

TOTAL CAPITAL required for 3 years

40000

SECTION 2: QUALITATIVE FACTORS

4

Dimension of identified target groups
The cash flow indicated above is a very prudential estimate. The estimation of costs related to personnel comprises only staff that need to be hired. It doesn’t include the salary of the founding shareholders that will retain their academic employment. The share holders will take care of the administration and managing. The 40000€ capital comprises stock shares and the amount of cash required to cover the initial debt.

Year

I

II

III

IV

Surveillance systems

3

10

20

50

 

 

Sales estimates are very prudential. The first year assumes the first applications to be sold as basically pilot cases that will help in the fine-tuning of the system. This philosophy applies to the second year as well and considering the initial difficulty of a new technology to enter a market already saturated by an existing one. If technically successful, the demand for the product should rapidly grow after the first 3 years.

 

 

6

Evaluation of financial Risks for R&D result
The financial risks associated to the R&D result are mainly concentrated in the first year of activity. During the first year the final engineering and testing phase will take place. This phase will be the most critical as unexpected technical problems may arise potentially disrupting the release to the market. However, the testing currently being performed at the University and the results obtained so far greatly reduce the overall risk of technical failure. In any case, capital exposure during the first year is kept to a minimum. The 40000€ capital includes the start-up costs and part of the cash required to cover failure 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. 1.  FP7, FP7 for SMEs

The academic expertise of the founding members allows the participation of the spin-off to FP7 European products

2      National Funding

 

Regional funding

1. Regional funding: L. R. 4/2005, legge a sostegno e sviluppo competitivo delle piccole e medie imprese del Friuli Venezia Giulia

 

3      Private funding

 

1)Own capital

2)Banking credits

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)…
The presented R&D result is radical innovation in the field of video surveillance. It introduces a software able to understand the activities in a scene monitored by video sensors. The software can discriminate between normal and anomalous (predefined) patterns of activity and thus alerting the operator when something suspicious is in progress.The solution is a revolution in the field of video surveillance. It supersedes classic Closed Circuit Television systems that have several disadvantages: if not attended by a human operator they cannot be used to stop a potentially dangerous situation but can be used only a posteriori as a forensic proof. On the contrary if attended by human operators they are very costly.

The proposed solution significantly reduces the cost associated to security personnel as a single human operator, possibly occupied  in a different task, is alerted only when something suspicious is happening. In addition the system has the great advantage of being able to stop the criminous or dangerous activity while in it is in progress.

After decades of research and development, the necessary computer vision algorithms have reached a sufficient maturity and robustness to be included in a market product. The R&D result has therefore a strong technical potential. A prototype system is currently under development and testing at the University of Udine.

The existing prototype requires final engineering and testing before being ready to hit the market. The estimated amount of work is one year and the associated cost for personnel only (programmers) is 50000€.

Direct competitors are estimated to be half dozen university spin-offs with the same expertise. None of them appears up to know to have landed a killer application that is conquering the market.

The main risk is estimated to be related to the first year dedicated to software final engineering and testing.  This phase will be the most critical as unexpected technical problems may arise potentially disrupting the release to the market. However, the testing currently being performed at the University and the results obtained so far greatly reduce the overall risk of technical failure.

Overall the R&D result appears to have a strong potential for exploitation.

 

Decision of evaluation (Please tick as appropriate)

 

X

The R&D has a high potential of exploitation
The R&D result needs minor revisions
The R&D result needs moderate revisions
The R&D result needs major revisions
The R&D result has no potential of exploitation

 

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