Scheme and Agency

SINE, IIT Bombay has a pool of seed grant approved by the following schemes of the government for providing seed support to startups.

Sr. No. Scheme and Agency/Organisation Mandate-Focus Area
1. “Sustainable Entrepreneurship and Enterprise Development Fund” (“SEED Fund”) of the Biotechnology Industry Research Assistance Council (BIRAC). Bio-Med Tech and Life science
2. Technology Incubation and Development (TIDE) scheme for virtual incubation ICT start-ups with hardware and software products

Amount: The seed support per startup will be between Rs.25 – 40 lakhs.

Usage: The funds can be used for the following:

  • Product development
  • Testing and trials
  • Test Marketing
  • Mentoring
  • Professional Consultancy (To attract Professors of institutions to work with small firms)
  • IPR issues
  • Manpower for day to day operations
  • Any other area as deemed necessary and recommended by the Management Committee.

Eligibility:

The SEED fund is only for registered startups as private limited company with minimum 51% ownership by Indian citizens (does not include OCI or PIO). Under seed support programme, a company will be a start-up as per definition by DIPP.

  • Up to a period of 7 years from the date of incorporation/registration, In the case of start-ups in the biotechnology sector, the period shall be up to 10 years from the date of its incorporation/ registration.
  • The turnover of the entity shall not exceed Rs.25 Crore.
  • The entity should be working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation. However, an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘start-up’.

Prioritization for seed support would be for:

  • Alignment with SINE’s focus areas as per mandate of the concerned scheme
  • Product offerings (vs service offerings)
  • IP-rich enterprises
  • Strong knowledge components in enterprises

The innovator/start-up shortlisted for seed support will be subject to the policy of SINE

Selection Process:

Applications for the seed fund will be subject to two level of review process:

- Internal review by SINE team

- Selected team will be invited to present before the Investment Committee (IC)

- Broad criteria for review criteria will include (but not limited to):

  • Team with relevant skill sets, and execution capability
  • Clear value proposition and competitive advantage
  • Customer segment, Size of market or potential for significant impact
  • Intellectual property
  • Roadmap with clearly defined milestones
  • Regulatory/certification/policy risks

Typical terms for seed funding:

  • The amount of seed support and mode of disbursement will be as per the decision of IC.
  • Disbursement of the seed funding will be in tranches, linked to pre-defined milestones. The funds will be released after execution of the Seed Support Agreement.
  • Investment mode: Equity ownership/ Convertible Preference Shares in the form of CCPS/OCPS in a private limited company.
  • BoD representation: Board Nominee Director and/or observer of SINE and/or of the concerned funding agency, if so stipulated.
  • Monitoring: Investee companies will submit six-monthly progress report and Annual financials/MIS, or as per requirement of funding department.
  • Decision of SINE team and/or IC as the case may be will be final. No explanation or justification for non-selection will be provided.

Last date of Application: 20/12/2018

Application:  seed funding