- Country: South Africa
- Industry: Technologies
- Stage: Later stage
- Investment size: $70,000 / min. $30,000
Final stage funding to commercialise a unique, RFID based PC Data Protection and Access Control solution.
All development work for the Disc Ice product is complete and the product is now ready for commercialiasation.
The product consists of 2 RFID devices, a USB LOCK which is inserted into the computer and a KEY which is retained by the PC user, a programmed CD and is packaged in a DVD box.
By simply walking away from the PC the user is able to “lock” the PC which prohibits unwanted access to the machine. When returning to the PC it will unlock and allow the user to continue working without the need for closing screen savers or entering passwords, etc.
The RFID technology used is world leading edge and its application in this product is unique. The “lock/unlock” technology has numerous applications outside of the computer market however it was decided to initially enter this market due to the size of the potential market (currently around 1,2 billion computers) and the relatively low selling price of the product.
Other PC access control products exist such as smart cards, biometrics, passwords but none are “set and forget” utilizing “ zero user interaction” so that the user need do nothing to start, stop, or continue the protection, everything is automatic.
The product has been field tested and evaluated over the last 10 months by several potential distributors based in the US and the UK with very favorable results. They now wish to begin marketing sample products to their respective customer bases.
It is intended to sell the product through established resellers and distributors. It would be beneficial for several reasons that manufacture is done in country of sale.
From research done to date the selling price is anticipated at around $49 per unit with a manufacturing cost of approximately $19 depending on the size of the production run.
The total investment to date is approximately $600 000 which was provided by 3 private investors over a period of 4 years of development. Breakeven would be achieved after sales of 180 000 units which could be achieved within 18-24 months after the commencement of sales. These projections are based on figures provided by potential distributors in the US.
Due to personal reasons and other commitments the existing investors are unable to assist with this final phase
Final stage funding is now required to complete several small software updates, product certifications (required for the RF frequency used), complete web site design and launch, final design and manufacture of external packaging and manufacturing of 200-300 products to assist potential developers in their marketing efforts.
New investors are offered the same arrangement as is in place with the current investors, i.e. repayment of the capital amount plus 10% (simple interest) plus a portion of “profit share” in the technology, the size of this portion is dependent on the amount investment.
Investment proposal is available for download on Merar.
The RFID technology used in the product is leading edge and many have attempted to develope this product without success due to inability to obtain extended battery life and achieve sustainable and consistent functionality. We have.
The product has already been evaluated by several potential distributors in the US and UK and all have expressed an interest in representing the product in those countries.
The technology has multiple applications beyond the PC use and growth potential is extensive
Rationale for the deal
PC security is a high priority in almost all corpoartions and organisations. This product can be used by any PC user and prvides a "front line" protection against mischievious access.
As stated by Forrester Research, the majority of security breaches involve internal employees, with some estimates as high as 85 percent. Inadvertent employee error, laptop theft, contractors’ unauthorized access to information, disgruntled employees, password mismanagement – all of these factors can mean drastic revenue loss, legal liabilities, diminished productivity and brand erosion.
Use of financing
All development work is complete.
Final stage funding is required to complete various elements to make the product ready for commercialisation.
This includes product manufacture, final packaging design and manufacture, minor software adjustments, final web site design and launch and RF certifications.
It ios also hoped to complete 3 enhancements which will expand the marketability of the technology.
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