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
- 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.
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
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
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