Don’t Forget Me Funding Plan:

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Don’t Forget Me
Funding Plan:
In order to make Don’t Forget Me a success, we must provide enough revenue to cover
the cost of the project. The Blue team will submit a Small Business Innovative Research
(SBIR) grant proposal for Phase I & Phase II to the National Science Foundation (NSF).
Phase III funding will be provided though venture capital investment.
Phase 0
The initial phase (phase 0) does not have any amount involved since Old Dominion
University supply the Don’t Forget Me project with the resources needed. This phase will
end when the semester ends on December 14, 2007.
Phase I
The Don’t Forget Me team will submit a proposal for funding to The National Science
Foundation (NSF) SBIR. The maximum amount that the agency will grant us for the
Phase I is $100,000. Our expected cost for the personnel and hard resource is $94,305
(see DFM budget chart document for itemized budget). We will use the funding to build a
single prototype to make sure every device in the system works perfectly. Our estimated
time to finish the project is 5-6 months.
Phase II
After the Phase I, we will request more funding from National Science Foundation (NSF)
SBIR again to develop the next phase, which is phase II. The maximum amount that NSF
will grant us for this phase is $750,000. This phase is the continuation of the previous
phase, but the testing will be more intense and detailed. We will test the system in a wide
variety of vehicles, which include a regular car, pickup, SUV, van, and bus, to study the
effectiveness of our system in different conditions. The intense testing will last for 2
years, and our expected cost for this phase is $667,127 (see DFM budget chart document
for itemized budget).
Phase III
We will begin contacting the car or bus manufacturers to make a preliminary contract
agreement with them. Our income will be based on the licensing of our product. Basically
we make percentage profit for each vehicle that has implementation of our product.
However, if we still need more funding, we will apply for a small business loan.
Contacting the manufacturers and making contract will be approximately 6-12 months.
Our expected cost for the Phase III is $512,234 (see DFM budget chart document for
itemized budget).
TOTAL BUDGET
Phase I
Phase II
Phase III
Total
$94,305
$667,627
$512,234
$1,274,166
OUT YEARS
Outyear
1
2
3
4
Systems Sold
50,000
100,000
125,000
137,500
Total Cost
$1,636,702
$1,124,468
$1,124,468
$1,124,468
Total Revenue
$1,987,766
$5,863,298
$10,988,830
$16,739,362
ROI
$863,298
$4,738,830
$9,864,362
$15,614,894
* Assumes a licensing fee of $50/vehicle, that a deal to install the system on 50,000
vehicles will be reached by the end of Phase 3, and that revenue will already begin to
accumulate by the beginning of the first outyear.
Beyond these years, the total cost will be very hard to predict due to the possibility of
research price increase, salary increase, technology price increase, increase number of
employees, company expansion, and more.
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
ROI
6,000,000
Total Cost
4,000,000
2,000,000
0
Year 1
Year 2
Year 3
Year 4
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