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The Entrepreneurship Development Center ('Venture Center' ) is hosting a seed fund with a corpus of Rs 2 crore under the scheme "Seed Support System for Start-ups in Incubators" of the National Science & Technology Entrepreneurship Development Board (NSTEDB), Department of Science & Technology.

The Seed Support is for incubatees (physical resident units within STEP/TBI). The funds are meant for early stage funding for indigenous ideas and technologies requiring up-scaling and related work.

Incubatees of Venture Center are encouraged to contact Venture Center for further information.

Quantum of financial assistance to the incubated entrepreneur

• Minimum: Rs. 2 lakh
• Maximum: Rs. 50 lakhs

Broad Areas to be covered under the financial assistance include:

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

The Seed fund emphasizes:

• Alignment with Venture Center's Focus areas
• Product offerings (vs service offerings)
• IP-rich enterprises
• Strong knowledge components in enterprises

The seed fund is only for

• Companies with minimum 51% ownership by Indian nationals
• Companies ready to be incubated at Ventuer Center

Here is a list of make/break criteria for applicants:

• There must be at-least one dedicated entrepreneur involved in the venture
• There must be a formal business plan
• The venture and the team must have high ethical & professional standards
• The venture must have a strong technology/knowledge component
• EHS requirements must be met
• Key Proof-of-Concept must be demonstrated & must be reproducible
• The venture must be registered as a private limited company, or must be in the process of registration
• The amount of funding requested must be less than Rs 50 lakh
• The entrepreneur(s) must be willing to share equity in the venture
• The seed funds requested must be for activities such as product development, prototyping, scale-up, developing IP portfolio, test marketing, trials, certification, testing

Applications for the seed fund will be reviewed based on criteria such as (but not limited to):

• Is amount of funding requested enough to reach critical milestone?
• Does the venture have a clear, potentially significant/singular value proposition
• How big/fast growing is the potential market?
• Are target customers clearly identified?
• How credible is the technology? (Is PoC credible in the opinion of subject-matter experts?)
• Are there regulatory/certification/policy risks?
• What are the sources of sustainable competitive advantage (eg. novelty, patentability, etc.)?
• What is the quality of the business plan (revenue model, product roadmap, market segments, etc.)?

Typical terms for seed funding:

• Investment mode: Equity ownership in a private limited company
• Equity stake for seed fund: Up to 20%
• Investment amount: Rs 2 lakh - 50 lakh
• BoD representation: 1 BoD seat and 1 Board observer seat
• Promoter/founder stakes: Vesting requirements
• Reporting: Bi-annual presentation to seed committee + Quarterly/annual financials

Seed fund process for shortlisted applicants.

Business Plan Templates

• Sample business plans
• Business Plan and Competitions in India
• Virtual Ink (Source)
• The Nuts and Bolts of Business Plans (Source)
• Entrepreneurship 3: Business Plans (Source)

Beneficiaries of DST Seed Support Scheme:

• NavStik Autonmous Systems Pvt Ltd
• WeInnovate Biosolutions Pvt Ltd
• Module Innovations Pvt Ltd
• Genrich Membranes Pvt Ltd