Why Prototypes?

Prototyping is an effective risk reduction step.  Through prototyping one can determine the validity of assumptions and demonstrate physically how a proposed need can be met. The cost of prototyping has been estimated to consume less than 15% of the total cost of product development, yet it creates significant value in the process by validating the concept and reducing technical risk allowing for assessment of market potential.

Avoiding additional start-up cost to enhance profit.  Manufacturing, marketing, advertising, along with supply chain factors, are significant additional costs for launch that do not produce much more value as shown in the graph. These necessary actions also require additional time and resources.  The prototype stage, which is before the intersection of Risk and Expense, has minimal expense. For these reasons, we believe taking good research concepts to a demonstrated working prototype has the highest “return” in terms of cost versus value gained in the least amount of time.  Therefore, a properly managed portfolio of such prototypes has a realizable financial potential with a favorable return based on the investment cost to translate, develop and sell to existing buyers.