Funding Opportunities For Startups
IIT Mandi Catalyst provides startup funding through a variety of funding schemes. These schemes supplement the incubation program’s engagement structure. A startup must be a part of our residential incubation programme in order to receive funding under any of these schemes.
The program will focus on supporting ideas to solving problems related to human-computer interfaces across domains. These domains may include, but not limited to, environment, healthcare, information technology (IT), and defense and security, which form important sectors of the Indian economy. In this program different stages start-up will be supported by different schemes such as CPS-PRAYAS, CPS-Seed Support Scheme and CPS-EIR.
CPS-PRAYAS program is focussed on Idea-to-prototyping journey of young startups/innovators. The individuals’ innovators or startups that are in the idea-prototype stage can benefit from this scheme with a maximum grant of INR 6 Lakhs and access to IIT Mandi campus. The duration of the engagement can range from 6-18 months.
CPS-Seed Support Scheme program is focussed on the commercialization of products developed by startups under the incubation program. Startup registered private company and completed a minimum of three months incubation period at the TBI can get support upto 50 Lakh as soft loan or against equity or a combination of both.
CPS-Accelerator Program The CPS-Accelerator Program is a short individualized program aimed at helping startups to accelerate growth, quickly acquire entrepreneurial competencies, raise seed funding, and provide a greater overall chance of surviving.
CPS-EIR is aimed at inspiring the best talents to be entrepreneurs, minimise the risk involved in pursuing start-ups, and to partially set off the opportunity costs of high paying jobs. EIR support recipients are expected to pursue their entrepreneurial aspirations full time. The maximum duration of the program is one year during which monthly financial support up to Rs. 30,000 for a period of 12 month will be provided to recipient along with access to IIT Mandi’s innovation and entrepreneurship ecosystem. iHub EIR programme provides tremendous opportunities for innovative entrepreneurs to expand their networks and get critical feedback on their ventures in order to promote their entrepreneurial career goals and aspirations.
Funding Agency: iHub and HCI Foundation.
Maximum Funding per startup :-
Startups incubated at Catalyst have an opportunity to avail a monthly sustenance allowance from the HP Center for Entrepreneurship Development. A startup has to have a ready prototype to avail this funding. Maximum duration of the scheme is one year. The disbursement is subject to the HPCM Startup Policy.
Funding Agency: HPCED
Maximum Funding per startup: INR 3 Lacs (25,000 per month for one year)
Sponsored by The Ministry of Electronics and Information Technology, TIDE 2.0 makes available funding support for startups engaged in ideas related to electronics and communication solutions. The startups are expected to utilize the funds for prototyping.
Funding Agency: MEITY
Maximum Funding per startup: INR 7 Lacs
IIT Mandi Catalyst: Call for application for TIDE 2.0 Scheme
Catalyst invites applications for ideation & prototype level projects under the Tide 2.0 scheme of the MeitY, GoI. The TIDE 2.0 scheme envisages provisioning support to tech startups during the entire journey from idea-to-market. The period of prototyping support can be up to 12 months.
Objectives of Tide 2.0 Scheme
- Fostering and evangelizing a vibrant entrepreneurship ecosystem that inspires budding entrepreneurs as well as support existing ones.
- Creating entrepreneurship models of both financial as well as a social value.
- Provide holistic incubation support including co-working space, mentoring, and networking for startups.
- The financial support for startups will be provided to Facilitate IPR filings.
- Year-Round Engagement Programs- Low & Deep Engagement Programs, Challenge Grants, Hackathons, IPR Sensitization and an Annual Global Startup Event.
- Providing robust Corporate-Start-up Business Connect Platform for startups.
To promote e-Governance for empowering citizens, promoting the inclusive and sustainable growth of the Electronics, IT & ITeS industries, enhancing India’s role in Internet Governance, adopting a multipronged approach that includes the development of human resources, promoting R&D and innovation, enhancing efficiency through digital services and ensuring secure cyberspace.
About Tide 2.0
Technology Incubation and Development of Entrepreneurship (TIDE 2.0) is a scheme for handholding close to 2000 Technology Startups addressing societal challenges in seven selected thematic areas identified based on national priorities. The seven areas of national concern have been identified as Healthcare, Education, Agriculture, Financial inclusion including digital payments, Infrastructure and transportation, Environment and cleantech, clean energy, and other emerging ICT based areas.
Tide 2.0 GRANT
The program mainly targets a valid PoC to be transformed to prototype or a Minimum Viable Product (MVP) by providing ample opportunities and support in terms of product development assistance, access to technical experts, mentoring, infrastructure and administrative support. Hence, the program bridges the gap between idea and prototype funding.
- The applicant should be a citizen of India.
- The idea should fall within the listed focus areas.
- The start-up should have a definite proof of concept which is to be further developed into a prototype or Minimum Viable Products (MVP)
GRANT of upto ₹ 7 Lakh per start-up for one year may be provided.
Last Date for submission of application: 29 January, 2023
Sponsored by NSTEDB, DST, this scheme has a provision of a grant of upto INR 10 Lakhs for the purpose of prototype development. The scheme is available to the hardware startups who are physical incubatees at Catalyst.
Funding Agency: NSTEDB, DST
Maximum Funding per startup: INR 10 Lacs
IIT Mandi Catalyst: Call for application for NIDHI PRAYAS
Catalyst invites applications for prototype level projects under the NIDHI-PRAYAS scheme of the NSTEDB, DST. This grant will be utilized by young and aspiring innovators to convert their ideas into a prototype. The period of prototyping support can be up to 18 months.
Objectives of NIDHI-PRAYAS:
To enable the translation of an innovative idea to a prototype.
To support faster experimentation and the idea to market journey.
To generate innovative solutions relevant to local and global problems.
To attract a large number of youth who demonstrates problem-solving zeal and abilities
To work on their new technology/knowledge/innovation-based startups.
To build a vibrant innovation ecosystem, by establishing a network between innovators, academia, mentors, and incubators.
Why should startups apply?
- To translate an innovative idea to a prototype.
- To get a platform for faster experimentation and modification in approach
- To generate innovative solutions relevant to local and global problems
- Access to infrastructure and prototype building facility and mentorship
- The prayasee can get a prototype grant limited to a maximum of Rs 10.00 lakhs for making the prototype of the innovative idea.
Background on Nidhi-Prayas Scheme
National Initiative for Developing and Harnessing Innovations (NIDHI) is an umbrella program conceived and developed by the Innovation and Entrepreneurship division, Department of Science & Technology, Government of India, for nurturing ideas and innovations (knowledge-based and technology-driven) into successful startups.
The NIDHI-Promotion and Acceleration of Young and Aspiring technology entrepreneurs (NIDHI-PRAYAS) program, is one of the programs introduced under NIDHI, focuses on addressing the idea to prototype funding gap. This is a program designed to attract a large number of youngsters to come forward to try out their ideas and try to see if they will work in real-life business situations. If selected, such selected applicants are referred to as PRAYASEE’s.
The NIDHI-PRAYAS grant would be handled by IIT Mandi Catalyst in its capacity of a PRAYAS CENTRE (PC). The PC would be a place where innovative ideas are supported through physical infrastructure, technical guidance, business mentorship and a prototype grant for converting the idea into a prototype. A furnished and well-equipped space has been set up at Catalyst as the host TBI. The innovators would approach Catalyst for seeking support under the program.
This grant, therefore, will primarily be utilized by the innovators to convert their ideas into a prototype. It cannot, however, be used for supporting:
- Innovators / Startup who do not / will not own the Project know-how/ IP
- Funding research/student internship in Academic institution or R&D organization
- Innovators / Team/ Startup who is already supported once under NIDHI PRAYAS
- Innovators who do not have the necessary NOC on IP, granting sufficient time to work on PRAYAS project from their respective organization/institution
- Innovator supported under NIDHI-EIR in parallel with NIDHI-PRAYAS
- Innovators who do not have a roadmap/will towards commercialization
The eligibility criteria for the applicants for PRAYAS program are as follows :
1. Any individual applying for PRAYAS has to be an Indian Citizen with a government-approved proof of nationality such as a valid passport, voter’s id, etc. The applicant should be in the age group of a minimum of 18 years, as on the date of application.
2. Individual Innovator OR Team of Innovators: –
The innovator should have the know-how of the PRAYAS project. For the team of innovators, there has to be –
a. an agreement among the team about the lead innovator who would apply and the funds will be transferred to the lead innovator’s account (after selection).
b. IP generated would vest with the innovator/team and it would be further taken for commercialization
3. In the case of Founders, Co-founders of Start-up applying for PRAYAS:-
a. At the time of application, the period of existence of a start-up and its operations should not exceed 7 years from the Date of Incorporation,
b. Wants to develop the prototype for a new product, for which they may have not received a similar kind of support.
c. The company should have an annual turnover not exceeding Rs. 25 lakhs for any of the financial years since its inception
d. IP generated would vest with the start-up
4. Innovators in employment OR Students with any R&D organization/Academic Institution:-
a. It is mandatory that the innovators pursuing PRAYAS should have the Project know-how and own the IP.
b. The innovator has to seek the NOC from their organization/institution. The NOC should have the following
I. Permission to apply for PRAYAS and the innovator will be granted sufficient time to work on the PRAYAS project,
II. IP generated would vest with the innovator/team and it would be further taken for commercialization
5. The priority areas for supporting innovations under the NIDHI PRAYAS program are manufacturing, agriculture, healthcare, clean-tech, energy, water, and the Internet of Things (IoT) and other technology areas.
6. The projects relating to pure software/ App development and those involving pure academic research are not eligible.
7. Preference may be given to those innovators
- Who have bootstrapped or have got co-investment commitment.
- Who has a clear road map for commercialization or start-up creation
- Women innovators
- Young innovators
8. The NIDHI-PRAYAS grantee should be registered for the pre-incubation or incubation program at the TBI for the entire duration of the program, after going through the TBI’s selection process.
9. NIDHI-PRAYAS grantee should be fully committed to work towards the prototype development for which the support is being sought and should not treat this as a stop-gap arrangement to support any other pursuits.
10. The innovator can avail the NIDHI-PRAYAS support only once and they should not have sought the similar support previously, from other Government of India organization / Institution for the same innovative concept as proposed in the application form.
Guidelines for Use of funds by the PRAYASEE
Can be used for
- Outsourcing Charges for R&D/ Design Engg/ Consultancy/ Testing/ Expert cost
- Raw material/ Consumables/ Spares
- Fabrication / Synthesis charges of a working model or process
- Business Travel and Event participation Fees (Ceiling 10% of approved project cost)
- Patent filing Cost – (PCT – Ceiling 10% of approved project cost)
- Contingency – (Ceiling 10% of approved project cost)
Cannot be used for
- To pay the grantee/relatives.
- To pay usage charges to the TBI*
- To repay loans/ commitments made earlier.
- To pay rent of own accommodation, the creation of infrastructure facilities like a shed, etc should not form the component of support/funds.
* Subject to conditions of PC- IIT Mandi Catalyst
The outcome of innovators project supported should be of any of the following:
- Should have the working prototype within 18 months
- Progress towards IP filing, commercialization in form of licensing or Startup
- Funding / Investment received
- Expression of interest from manufacturers
Sponsored by NSTEDB, DST, this scheme has a provision of seed funding of upto INR 50 Lakhs for startups. The funding is meant for product development and commercialization purposes.Purpose: Product Development and Commercialization
Funding Agency: NSTEDB, DST
Maximum Funding per startup: INR 50 Lacs
Him Startup Yojana (HIMSUP) is a scheme sponsored by HPCED, this scheme has a provision of seed funding of upto INR 50 Lakhs for startups. The funding is meant to enable the youth, existing and potential entrepreneurs of Himachal Pradesh to start their own enterprises.Purpose: Product Development and Commercialization Funding Agency: HPCED Maximum Funding per startup: INR 50 Lacs
Entrepreneurs-in-Residence (EIR) is one of the programs introduced under NIDHI to inspire the best talents to be entrepreneurs, to minimize the risk involved in pursuing start-ups, and to partially set off their opportunity costs of high paying jobs.
This is an entrepreneurship/ grant in the form of a stipend to an aspiring or budding entrepreneur with a potential for pursuing a promising technology business idea.
Purpose: Entrepreneurs-in- Residence (EIR) Programme is one of the programs introduced under NIDHI to inspire the best talents to be entrepreneurs, to minimise the risk involved in pursuing start- ups, and to partially set off their opportunity costs of high paying jobs.
Funding Agency: NIDHI Entrepreneur In Residence
Maximum Funding : INR 30,000/ – per month
Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization. This would enable these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions.
Purpose: PoC, Prototype Development, Market-Entry, and Commercialization
Funding Agency: Department for Promotion of Industry and Internal Trade (DPIIT)
Maximum Funding : INR 50 Lacs