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Formulation of Seed Funding Guidelines & Online System for Seed  Support

Government of Karnataka provides seed funding under the ‘Idea2PoC’ scheme of Startup Policy of Karnataka 2015-20. Idea2PoC is a programme to provide early stage funding to ideas or concepts which are yet to establish the proof of concept in the real world. The objective is to encourage innovators to stimulate commercialization of their inventions and to help in validating Proof of Concept.

Idea2PoC is given in the form of Grant-in-aid but limited to a one time grant of up to INR 50 lakhs. Funding is released in tranches as per the Project milestones agreed in the Memorandum of Agreement between Startup and Karnataka Biotechnology and Information Technology Services (KBITS).

The fund disbursement is milestone based and is released to Startup in installments over a maximum period of 2 years. The Applicant should be a Startup as per definition in Karnataka Startup Policy. Eligibility criteria is available at portal of Elevate-Eligibility criteria. Eligible entrepreneurs can apply for the scheme incentive during call for proposal through an online portal. The process has a mix of online and offline process which include:

  • Receiving of applications online
  • Pitching in-person
  • Judgment offline
  • Collation, compilation & declaration of results online

More details with regard to screening process is available at Elevate-screening process

 

Govt. of Kerala has introduced the Seed Support scheme to provide financial assistance to startups to foster the formation and development of innovative, technology-based business enterprises that will stimulate the economy of the State of Kerala through venture creations, increased employment and leveraging of private investment. This scheme is implemented through Kerala Startup Mission, which is the nodal agency of Govt. of Kerala for startup related activities and schemes.

The upper limit of seed support to a startup is Rs. 15 lakhs.

 

Eligibility Criteria

  • Startup should be a registered company in Kerala as an LLP or Pvt. Ltd company and should have an active registration at the time of application
  • The startup must be working in an innovative product or technology. The seed fund is not generally given for service startups and SMEs working in trade and commerce
  • The seed support would generally cater to prototype/MVP stage financing for commercialization of the indigenous ideas, innovations and technologies.
  • Preference will be given to startups with DIPP startup certification. In any case the startups shall get such certification before the release of second installment of seed capital
  • The startups shall not have any other pending dues with any of the Government agencies and shall not be blacklisted by any Govt. agency in India

 

A seed grant of up to Rs. 10 lakh per startup as an interest free loan will be given to Startups by the State Government for a period of 10 years. The financial assistance shall be provided to startups for validation of idea, prototype development, assistance towards travelling costs and carrying out field/ market research/ skill training/ marketing and initial activities to setup a startup etc. Financial Assistance will only be given to the Startup on achieving milestones and performance parameters as defined by the Incubation Center and the Trust (Nodal Agency of the State). The actual amount of funding shall be based on the assessment made jointly by the incubation centre and the Expert Committee.

Eligibility Criteria

  • Startups have to be certified by the Nodal Agency.
  • Startups must be registered with an incubation centre.
  • 5% of the seed grant shall be contributed by the Incubatee into the Startup

More details with regard to seed funding process is available at Bihar Startup portal.

Seed Capital Fund Scheme is an important component of "Sher-e- Kashmir Employment and Welfare Programme for Youth (SKEWPY)" which in turn is a path breaking initiative of the government of Jammu and Kashmir for addressing unemployment in the state. Under SCFS, seed money of up to Rs 7.5 lakh is provided to eligible youth. Seed capital is like a one-time grant given to the entrepreneurs for making their business plans bankable.

The main objective of the Scheme is to motivate, train and facilitate a large segment of educated young men and women to take up entrepreneurship as a career option. It is also an objective of the Scheme to invest in various areas of economy to optimally exploit the resources.

The scheme launched in 2010 has benefitted over 8000 entrepreneurs till date.

Eligibility Criteria

The following shall be eligible for assistance under the Scheme:-

  • A state subject in the age group of 18 to 37 years having a qualification of 10+2 or above who is unemployed;
  • There will be no income ceiling for coverage under the scheme;
  • The beneficiaries must be registered with the concerned District Employment and Counselling Centre. They can also be registered with other departments and institutions like DICs etc.
  • Any person or any, existing units and the units which have already availed of any incentive or subsidy under any scheme of the Government of India or the State Government shall not be eligible for assistance under the scheme;
  • No institution, corporate body, society or an NGO shall be eligible for assistance under the scheme.

More details with regard to seed funding process is available at Seed Guidelines

 

A Seed Grant up to INR 3 Lakhs per start-up shall be provided for validation of idea, prototype development, assistance towards travelling costs and carrying out field/ market research/ skill training/marketing and initial activities to setup a startup.

Eligibility and application procedure:

  • Seed funding to startups would be routed through State/Centre recognized Incubators.
  • The incubatee would apply for the grant to the incubators where it is being incubated
  • Incubator after due diligence would forward the case to the Implementation Committee.
  • Startups need not necessarily be incubated in the incubator for being eligible for seed funding but such independent startup would be tagged to related incubators for due diligence and further recommendation to implementation committee
  • The Implementation Committee would further give its recommendation & accordingly sanction the grant on merit of the idea

Seed Funding Beneficiaries

Under the Idea2POC fund, Government of Karnataka has benefitted the following startups:

  • Tourism Call: Granted 8 Startups (Allotted Rs. 1.8 Crore)
  • Idea2PoC Call: Granted 12 (IT) (Allotted Rs. 3.18 Crore ) & 26 (Biotech) (Allotted Rs.10.70 Crore)
  • Elevate Call: Funded 76 (IT) & 11 (Biotech with Rs. 20.03 Crore allotted

The department of IT and BT has also conducted 6 Grand Challenges supporting 18 startups with seed funding of Rs. 10 Lakh each

More details with regard to seed funding process is available at Karnataka Seed Funding

 

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