Resources
All About Angel Investors
All About Venture Capitalists
Business Funding Resources
Small Business Funding
Startup Capital Needs
Business Plans & Proposals
Entrepreneur - New Business
Resources
Solution to Smart and Secure Trading
Posted by: Hunter Li on 5/19/2008 8:45:57 AM
Funding Needed:
Above $1mil 		Category:
Information Technology (IT) 		Website :
Please login to view.
Location :
London, All, United Kingdom 		Viewed : 320 times
Favorited : 0 times 		Share
Description:
The world`s customs have never been so eager to have a transparent and effective system, under the pressure of ameriacan`s CTPAT (Custom-Trade Partnership Against Terrorism) and europe`s AEO (Authorized Economic Operater), the WCO (worldwide custom organization) members are looking for a way to fulfill the needs of globalizing.
Radii have developed technology which uniquely and significantly improves security within this market whilst affording re-programmability and hence the ability to re-use the tag time and time again as opposed to one off use of tags supplied by current manufacturers. The environmental benefit of easy re-use as opposed to make, use, and dispose are clear but there are further benefits in the efficiency gains which can be achieved in supply chain management and asset control management. In addition to these benefits RFID assists the move to paperless systems with digital information, internet, and wireless communications. Any reduction in the use of paper is obviously beneficial.
The business is therefore well placed to respond to the environmental pressures of the future and hence can look forward to returns in the long term. The competitive advantages of the product are based on technology for which patents are being applied and hence the company will be able to defend its market position.
The projected financial performance of the company is summarised in the chart below and as can be seen the company is expected to be highly profitable.
An investment of £300,000 is sought to enable the company to submit the necessary patents and gain the necessary product approvals. Some of this investment will support cash flow through to the second year of trade when the company becomes cash generative. A 30% equity stake is anticipated for this investment and by the end of the first year the company could be valued at £21.5m. A trade sale wound therefore, after 3 years return some £6.45m to the investor. Alternatively, given the cash generative nature of the business, an investor could look forward to a dividend stream from the third year onwards. Working on the model of distributing one third of net profits, the investors dividend at the end of year three would be of the order of £300,000.

 Digg It    Stumble It    Deli.icio.us
Respond
You must be a member to respond to this post. If you are a member , please login to respond.