Financial Model Development and Validation for a Process and Catalyst Offering in a Licensing Model

Student: Claudia Hajjar, 2023-2024

Låkril Technologies imagines a future where bio-based sugars serve as the raw materials for widely used petrochemicals. Their groundbreaking solution enables the creation of environmentally friendly acrylic acid and acrylates, which can seamlessly replace existing ingredients in paints, coatings, adhesives, and superabsorbent polymers. For more than fifteen years, the acrylic sector has been in pursuit of this solution, but economics have consistently posed a challenge. Låkril Technologies is confident the cost of producing bio-based acrylics using their catalytic innovation will be comparable to or even lower than that of conventional petroleum-based acrylics.

This capstone project aims to develop a financial model that reflects a projected revenue model for their licensing model. These revenue and expense projections are combined with beachhead opportunity data to present financial cases to prospective investors and to help the Board of Directors decide how much capital to raise. This project seeks to understand how the various one-time and recurring revenue streams available in a licensing and catalyst sales business model should be combined for optimized bottom line revenue with good top line revenue growth.