CPS-SEED SUPPORT SCHEME(SSS)

CPS-SSS program is focused on the commercialization of products developed by startups under the incubation program at the incubator.

The objective of the CPS_SSS Scheme

The basic idea of seed support is providing financial assistance to startups with new and meritorious ideas, innovations, and technologies. This would enable some of these innovative ideas/technologies to graduate to a level where they will be able to raise investments from angel/Venture capitalists or they will reach a position to seek loans from commercial banks /financial institutions. Thus the proposed seed support is positioned to act as a bridge between product development and commercialization of innovative technologies/products/services.

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Timely Empowerment

To ensure timely availability of the seed support to the deserving incubated startups, thereby enabling them to take their venture to the next level and facilitate their success in the marketplace.

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Development Bridge

To bridge the gap between product development and commercialization.

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Investment Readiness

To enable the incubator to assist the startups in reaching a level to raise investments from angel/Venture capitalists or onto a position to seek loans from commercial banks /financial institutions.

Eligibility conditions for Startups
  • A startup should be a registered private company and should have completed a minimum of three months incubation periods at the TBI at the time of the selection committee meeting.
  • A startup should 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 startup should be at least 51%.
  • The seed support would generally cater to early-stage financing for the commercialization of indigenous ideas, innovations, and technologies.
Program Guidelines
  • Seed Support is given as a grant to the incubator for providing to startups as a soft loan or against equity or a combination of both.
  • The Seed Support would be disbursed to startups incubated at the incubator only on the recommendation of the Seed Support Management Committee constituted by the TBI as per the program guidelines.
  • The incubator can disburse Seed Support to a startup as a debit/royalty sharing agreement /minority equity stake.
  • The seed support would generally cater to early-stage financing for the commercialization of indigenous ideas, innovations, and technologies.
  • IP generated using funding from this scheme will vest with the startup.
  • This seed support would be used by the incubated entrepreneur only and would not be used by the incubator for facility creation.
  • A startup should be only funded once under this program.
Expected outcome
  • Seed support to a startup is regarded as a means to attract and raise external angel/venture capital funding and should be appropriately leveraged by the startups.
  • The Quantum of Angel and VC funding raised is an indicator of the success of the program. It is expected that several of the funded startups under this program will go on to raise external funding.
Guidelines for use of funds

Can utilize the funds for the following purposes:

  • Product development
  • Testing and Trials
  • Test Marketing
  • Mentoring
  • Professional Consultancy
  • IPR issues
  • Manpower for day-to-day operations
  • Any other area as deemed necessary and recommended by the Seed Support Management Committee