Plans
Our funding goal and the usage of fund
We need around $440K fund to grow and expand our company for the next 24 months and reserve 60K for contingency purpose, and we wish plan certain government funding to cover around $170K where we can use to pay salary for technical labors and cover some IP and R&D cost. The main usage of the fund is to accelerate our product development process, take the initial market opportunity and establish customer relationship by delivering early stage promotional products including free-trial units, sample gifts and free professional training.
Numerically, about 63% of the fund will be allocated to R&D segment, including technical labors, prototyping and IP costs. The rest 37% will be spent on marketing and operation expenditures of the company. A more detailed distribution of fund usage will be illustrated in later sections.
The revenue model of our company
Direct sells
Sales of VR headset and associated equipment will be our major income source in the first 5 years. Once majority of the schools are adapting our teaching resource, we use this advantage to sell our products to educational organizations and distributors across North America.
Subscription
Apart from product sales, another anticipated revenue stream in the next stage will come from subscription fees for our diverse range of software labs. Our dedicated team will continuously update and expand the library of labs and fun projects, ensuring that our subscribers have access to the latest content and ongoing maintenance services.
ad from platform
Our ultimate goal is to create a thriving platform where learners can share their VR work, exchange experiences, and build a vibrant community. By fostering a strong user base, we aim to attract more users and vendors to the platform. As the platform grows and becomes a valuable hub for VR education, we may consider implementing a modest fee for vendors to access the platform's unique and engaged audience.
Government Funding Support
As a technology company, we have access to various funding opportunities that can greatly benefit our growth and innovation. Programs like Innovative BC, SR&ED, and NRC IRAP offer valuable funding options that we can tap into. These funding sources not only provide financial support but also increase our recognition within the government and industry. By applying for these funds, we can ease cash flow tensions and obtain resources to accelerate our innovative projects on a national scale. Some of these programs even reimburse tech positions' salaries, while others are project-based, enabling us to take bold strides in advancing our innovative endeavors.
Benefits to Canada
If everything goes as planned, in 5 years of time our company is expecting a dramatic grow that creates over 50 full time, part time and co-op job opportunities consist of engineering, marketing and sales, accounting, and administrative roles. Assuming our average profit rate is 15%, we will be paying a total of ~$1.2 Million dollars in corporate tax over the next 5 years. The targeted IP filing rate for our R&D department is approximately 5 patents/publications/copyrights per year. In addition to creating job opportunities, paying taxes, and filing IPs, our products will also help to grow the Canadian talent pool in the high-tech sectors.