IIT Mandi Catalyst is set to disperse the seed fund of INR 2 Cr during 2019-20 and INR 10 Cr over the next 5 years, under the scheme ‘National Initiative for Developing and Harnessing Innovations - Seed Support Scheme (NIDHI-SSS)" of Department of Science and Technology.
Broad Areas to be covered under the financial assistance include:
- To ensure timely availability of the seed support to the deserving incubated startups within an incubator, thereby enabling them to take their venture to the next level and facilitate their success in the marketplace.
- The disbursement of the proposed seed fund will bridge the gap between the development and commercialization of innovative technologies/products/ services more fluently.
- The scheme enables the incubators to assist the startups to reach a level to raise investments from angel/Venture capitalists or onto a position to seek loans from commercial banks /financial institutions.
- It is an advantage for incubators to widen their pipeline of startups and also share the success of their startups which would also result in ensuring their long-term operational sustainability.
- Product development
- Testing and Trials
- Test Marketing
- Professional Consultancy
- IPR issues
- Manpower for day to day operations
- Any other area as deemed necessary and recommended by the Seed Support Management Committee
- An Incubatee should be a registered company in India.
- The startup has to be a physical incubatee with a minimum of three months of residency at the Incubation Centre.
- Incubatee has to be an Indian start-up. This support is not meant for Indian Subsidiaries of MNCs/foreign companies. Persons holding Overseas Citizens of India (OCI), Persons of Indian Origin (PIO) would be considered as Indian citizens for the purpose of this scheme.
- The shareholding by Indian promoters in the incubate startup should be at least 51%.
- The seed support would generally cater to early-stage financing for commercialization of the indigenous ideas, innovations, and technologies.
- Early-stage startup is defined as a startup with Minimum Viable Product/Revenue Generation/ Commitment.
Terms of Seed funding
- The team should have potential and credibility for raising next stage funding
- Indicative Evaluation Criteria include: Unmet Customer Need, Market Size, Reliable Access to Customers, Customer Focused Solution, Barriers to Adoption by Customers, Clear Value Proposition, Clear Market Inefficiency, Barriers to Entry for competitors, Differentiated Position, Investibility of Venture, Subject Matter Expertise, Functional Competence, Supplier/Vendor Partnership
Mode of application
- The team must be willing to share equity with the incubator.
- Seed Fund will be disbursed in milestone based tranches after an agreement.
- Investment quantum: Max INR 100 lakhs
- Startup to provide CA Certified Utilization Certificate and statement of Expenditure from time to time as prescribed.
- Monthly reporting to Portfolio Managers, Bi-annual presentation to Seed Fund Committee and submission of Annual Financials/MIS
Filled in application form and pitch deck should be emailed to firstname.lastname@example.org
NIDHI-SSS Application form
NIDHI-SSS Pitchdeck template