Appendix 8: Estimated Cost Of Incubator

Without conducting adequate research on identifying a case study area, agreeing the scale of the case study (if any crypto project wishes to proceed) and finalising a case study location choice, it is only possible to give an approximate estimate of incubator costs.

The salary rate that incubees would require to enable them to focus on building and scaling their businesses has been identified as having a high likelihood of being the largest incubator cost. However, the true cost of this will entirely depend on the case study location selected.

For the preparation of this estimate the following assumptions have been made:

  • The incubator would include 50 incubees
  • The daily incubee salary rate required is estimated to be $3-$10 per day. It should be noted that the PEW research Center has conducted a report stating that 71% of the world’s population are living on $10 per day or less. The incubee salary estimate generated by TotalCrypto assumes that incubees would be paid for every day of the year (365 days) and that a salary rate above $10 per day will not be required.
  • Six webcams are required to provide adequate survaliance coverage of incubator areas.
  • Desks and chairs can be procured locally at a cost of $50/person.
  • There are three incubator workspaces that need to be secured.
  • It’s not possible to source any second hand computer hardware in the case study area.
  • Transporting hardware to the case study area would cost 10% of the gross price of items.
  • A gatekeeper to support the incubator and ongoing incubator logistical support/monitoring would cost ~$40,000 per year each.
  • Incubator contributors can be incentivised appropriately with ~$50k in additional promotions.

The preparation of this cost estimate to setup a 50 person incubator can be broken down into three categories:

  • Incubator hardware: $20k - $25k
  • Incubator security: $6.5k - $8.5k
  • 10% contingency for equipment shipping costs: $2.5k - $3.5k
  • Total Estimated Setup Cost $29k - $37k

In regards to incubator operating costs the following categories have been included in this cost estimate:

  • Intangible tools: Software, domains & hosting: $10.5k - $17k
  • Incubator gatekeeper to assist with incubator operation & setup on the ground: ~$40k/year
  • Incubator contributor promotion cost: ~$50k/year (crypto)
  • Ongoing incubator logistical support/monitoring: $35k - $50k/year
  • Incubee salary payments ($3-$10 every day of the year): $55k - $182.5k/year (crypto)
  • Total Estimated Yearly Operation Cost: $190k - $340k

Full cost estimate of setting up and running a 50 person incubator for a year: $220k - $380k

This would approximately be broken down as:

  • Fiat: $115k -$148k
  • Crypto: $105k -$232k

Next Section - Appendix 8.1: Incubator Hardware Cost Estimate Breakdown

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