Nidhi Seed Support System (NIDHI-SSS)

National Initiative for Developing and Harnessing Innovations (NIDHI) is an umbrella programme conceived and developed by the Innovation & Entrepreneurship division, Department of Science & Technology, Government of India, for nurturing ideas and innovations (knowledge-based and technology-driven) into successful startups.

NIDHISeed Support System (NIDHISSS)- Providing early stage investment

Objectives of NIDHI SSS Program:

The sole objective of the NIDHI-Seed Support System (NIDHI-SSS) is to ensure timely availability of the seed support to the deserving incubatee startups within an incubator, thereby enabling them to take their venture to next level and facilitate towards their success in the market place.

The scheme also enables the STEP/TBI 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.

Who Should Apply?

  • Incubatee should be a registered company in India with minimum of three months of residency at the STEP/TBIs.
  • 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 start up should be at least 51%.

Broad Areas and Items to be covered under the NIDHISeed Support Assistance

The start–ups would be supported primarily on the following from the seed support

  • Product development
  • Testing and Trials
  • Test Marketing
  • Mentoring
  • Professional Consultancy (To attract professors/experts from institutions to work with start ups.)
  • IPR issues
  • Manpower for day to day operations
  • Any other area as deemed necessary and recommended by the Seed Support
  • Management Committee of STEP/TBIS.

 

Quantum of NIDHI SSS

The experience tells us that the normal requirement of seed support is to the tune of Rs. 25 lakhs. However, in few exceptionally deserving startups , the upper limit of seed support to a start up may be raised to Rs. 100 lakhs. A startup supported once will not be eligible for applying for subsequent round of seed support to any STEP/TBIs. The STEP/TBI should have examined all cases of seed support before putting the matter up to the Seed Support Management Committee for selection. After the seed support is recommended to an incubatee startup , the terms of agreement with the incubatee start up should be framed by the STEP/TB linking the progress milestones, monitoring norms, reasonable repayment, recovery provisions in case of loan and terms of equity liquidation in case of equity holding by STEP/TBI.

 

***For any queries related to program, write to us at incubation@icreate.org.in

 INCUBATION

International Centre for Entrepreneurship and Technology – iCreate is inviting applications for incubation of slightly mature projects, to be incubated at its new Dev Dholera Campus near Ahmedabad, Gujarat. The period of incubation can be up to two years, and iCreate has dedicated a budget of up to Rs 250 lakhs for this round of applications.

If you have been working on an innovative technology / software / product/ service, and have spent time talking to real consumers of your offering, and have created some minimal viable product offering, then apply. We can offer you labs and workshops to finalize your offering, help take it to live customers to make it market ready, and also to mentor you so that you can build a growth organization and start earning serious revenue.

  • Pvt. Ltd. Company (or ready to be one) >1 co-founder in operation for 1 to 3 years
  • Project/Venture must have – component of technology, innovation, potential for global market
  • Should have attained some customer/market validation
  • Willing to be physically incubated at Ahmedabad. However, can spin off/ locate anywhere post incubation

Eligibility

  1. Only open to slightly mature start-up ventures that have
    1. Completed / have advanced substantially on prototyping and have a version of the product / service that can be demonstrated and are between 1 to 3 years old
    2. Completed / have advanced substantially on operational testing in the market, and have garnered real customer data (even if from a small number of customers) and this customer data should be demonstrable in some shape and form
    3. Revenue generating start-ups will be preferred
    4. A business plan that uses technology innovation, and have the potential to scale up to the national / international market
  2. The venture should be
    1. Should ideally have been bootstrapped, i.e. funded from own resources, friends and family, and perhaps some small seed funding
    2. It should not have received formal funding from investors
    3. The venture should be incorporated as a Private Limited Company, or should be capable of getting incorporated upon selection for incubation at iCreate within 45 days of acceptance of the offer
    4. It should be able to give stipulated equity at par to iCreate, upon joining
  3. The venture will be physically incubated at the iCreate Campus, specifically
    1. Some key process step(s) of the value chain should be based within campus premises
    2. The key promoter group will need to spend at least one continuous week per quarter on campus
  1. Office space with internet connectivity, hostel accommodation and mess food will be provided for a two to four-person team
    1. Access to labs and libraries will also be provided
  2. Depending on internal assessment of the project, iCreate will purchase 7.5% equity at par
    1. This stake will dilute down as the incubated company raises further funds
  3. Between Rs 25 lakhs to Rs 45 lakhs (depending on the actual need) will be given to the venture
    1. In exceptional cases, after internal deliberations, additional investment can also sanctioned
  4. There will be a nominal cost to the facilities provided, and this amount will be cumulated at the end of the incubation period and added to the total disbursed amount mentioned in point No. 6
  5. The total amount disbursed (sum of the amounts mentioned in points 6 and 7) will be treated as an interest bearing debt that the incubated company will have to repay to iCreate
    1. There will be up to two years of moratorium after graduation (extendable in exceptional cases after written request and approval from iCreate)
    2. The term for this loan with interest will be 4 years after the moratorium period.
    3. The interest charged will be the minimum stipulated by the applicable laws of the land and currently is in the ball park of 9% per annum, compounded annually
    4. By design, this loan can be converted into Optionally Convertible Preference Shares should the incubate company so request, subject to approval from iCreate management
    5. The conversion of this debt to equity will happen at an independently determined fair market valuation of the company, but iCreate conversion will happen at up to 25% discount on that valuation in order to account for the early stage risk
      1. To clarify, if the share price at the time of conversion is Rs 100, iCreate will be issued OCPS at Rs 75 per share
  6. iCreate will support the incubated company in its efforts to raise investment, however, it retains the right to sell its stake in the company at a time of its own choosing
    1. Subsequent shareholder agreements and share subscription agreements cannot take this right away from iCreate

Incubated Projects

The below-listed projects are either currently incubated or were a part of incubation earlier.

Hubilo

AlmaShines

BioScan

PurpleDocs

Percept

Chemical Shoppe

Labouradda

Mechmatics

Social Hardware

Wishvilla

NAKA

vDrone

Alluvium

Brainy IOT

Quixote

The Solar Labs

Valoric Ventures

Pole

Photom Technologies

Saur In Autosol

VentureXplore

MyPET

EnerLeaf

EnviroX

Yolo Perks

Lithe

Loneous

Work Social

Innotech