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VOLCANO
Index

Value and cost

Value and cost, phase by phase.

How much it costs to develop each maturity level, how much the startup is worth at each phase, and where the gap is that investors and allies can capture. Move the mouse, or your finger, over the chart.

4 min read

Value swing:
Horizontal axis: the 13 phases of the path, with the indicative timeline of a project whose R&D lasts two years; time does not advance uniformly, and outcomes arrive in years. Vertical axis: logarithmic, in euros. The grey band is the cumulative R&D cost; the dashed one, the net cost after the non-repayable funds; the orange one, the indicative value of the startup, adjustable with the controls, because the great outcomes are worth hundreds of millions and most projects never get there. The curves are the composition of the anchors below, not a projection by Volcano: the exact point of each project is set by the committee. To choose a stretch of the path and read its cost, with the project type and the grant funding, there is the simulation of the cost of the services; to put a price on a startup that does not sell yet, the simulation of the early-stage valuation.

The anchors

Where the curves come from.

AnchorValueSourceState
Median pre-money valuation, pre-seed and seed, Europe€4.8–6.0M (across 2026 quarters)PitchBook, European VC Valuations, 2026Market evidence; it swings by quarter, sector and geography
Median pre-money valuation, Series A, Europe≈€26M, 30–50% below the USPitchBook, Atomico and Carta, 2026 synthesisMarket evidence
Budget of a national R&D project€0.175–2M (minimum fundable €175,000)CDTI, PID lineObservable proxy for R&D cost
Size of the European instruments per TRL bandPathfinder ≈€3–4M · Transition ≤€2.5M · Accelerator ≤€2.5M grantEuropean Commission, EIC (Horizon Europe)Observable proxy
Average non-repayable share of R&D cost~70% (from 45% to 100% depending on the project)How we reduce riskA figure of the Volcano model
Correspondence between phases, TRL and CRLThe TRL dominates F3–F7; the CRL, F8–F13The path · the CRL ladderVolcano framework; each project's point is validated by the committee

Market figures and public instruments, indicative: they are not Volcano data nor a performance projection for any specific case.

The two readings

How investors and clients read it.

The investor or ally looks at the gap: they enter at the cost, and capture on the value curve; the earlier they enter, the greater the distance between the two curves, and the greater the risk that comes with it. The map of risk and reward puts numbers on that second half of the sentence.

Whoever commissions innovation looks at the dashed curve: the gross cost of each TRL band is that of the grey curve, but the Volcano model lowers it by 70% on average with non-repayable public funds. The exact budget of their case is defined after the qualification.

From the curves to your case

The committee sets each stake and each budget. These curves tell you where you are; the qualification tells you how much, in your case.

We choose to go to the Moon in this decade and do the other things, not because they are easy, but because they are hard.
John F. Kennedy, 1962
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