Scheme For Assistance For Start Ups/ Innovation

Assistance to Startups

The Quantum of Assistance as under would be provided to the Startups whose innovative project is approved/sanctioned by SLEC.

Sustenance Allowance:

A sustenance allowance of ₹ 20,000 per month per startup will be provided to the Startups for a period of one year.

If startups have at least one woman co-founder, ₹ 25,000 per month per startup will be provided as a sustenance allowance.



Seed Support:

Seed support up to ₹ 30,00,000 will be provided to the Startups on the following, based on approval/ sanction by SLEC:

1. Cost of raw materials/consumables/hardware & software/professional services /other equipment/ tools required for prototype/product/process development
2. Market research Testing & Trials
3. Marketing/ publicity assistance: Here marketing/ publicity assistance covers assistance to startups to attend national/international events. The fees/charges paid for attending the same will be considered eligible under this head.

[
Note: However, it is clarified that to and fro conveyance/accommodation expenses will not be considered for assistance]



Assistance to Startups having a Significant Impact on Society:

Additional support of upto ₹ 10,00,000 assistance will be provided to startups having innovative projects which have a significant impact on society, based on the conditions on approval/ sanction given by the SLEC.



Pre-Series A funding:

In the life cycle of a Startup, there is a funding gap which is better identified as the valley of death. This is a phase post commercialization where the Startup has just started generating revenue till the time period where its product/service gets market traction. Such startups will be assisted in getting venture capital. Initially, to support, such mid-level Pre-series A funding to startups, a separate fund shall be created under Gujarat Venture Finance Limited (GVFL). This assistance will be specifically to cater to the startups that have already received seed support from the government under various schemes for the promotion of startups.



Interest subsidy:

The startups that have been approved/sanctioned under this scheme will be eligible to avail of an additional interest subsidy of 1%, a maximum of up to 9% on term loans under the provisions of the scheme for assistance to MSMEs.



Assistance to enroll and participate in Acceleration Program:

Assistance up to ₹ 3,00,000 per startup will be provided to enroll and participate in the national / internationally recognized acceleration program. Approved/sanctioned startups will be eligible for assistance up to ₹ 3,00,000 per startup during the operative period of the scheme, to enroll/participate in a national/internationally recognized acceleration program. The fees/charges paid for attending the same will be considered eligible for getting assistance. However, it is clarified that to and fro conveyance/accommodation expenses will not be considered under this assistance.



Acceleration Program:

An acceleration program is typically a 3-4 month program for startups at the early traction and scaling stage. It is a process of intense, rapid, and immersive education aimed at accelerating the growth of the startup.



Assistance for Skill Development:

Approved/sanctioned startups shall be provided assistance for skill development training specific to soft skills, managerial skills, marketing skills, and financing skills for the startup project. Such skill development training should support the startups in understanding the ecosystem, fundraising, commercializing, and scaling up the startup project. Financial assistance up to Rs. 1 lakh per approved/sanctioned startup shall be given for participating in such skill development training programs on a reimbursement basis.





Assistance to the Approved/Sanctioned Nodal Institution

Mentoring Assistance:

Mentoring Assistance of ₹ 1,00,000 per approved/sanctioned startup shall be provided to Nodal institution for the mentoring service (Maximum ₹ 15,00,000 per annum per institute.



Reimbursement Expenses on Organizing Promotional Events:

Reimbursement of 75% of expenses incurred for organizing promotional events to the extent of a maximum ₹ 5,00,000. If the event being organized is specific to "Women Entrepreneurship", the Nodal Institution will be eligible for reimbursement of 90% of expenses incurred for organizing promotional events to the extent of a maximum ₹ 5,00,000. However, it is clarified that the beneficiary Nodal Institution will not be eligible to get assistance under any other scheme of Govt. of Gujarat for the same component/purpose.



Other Support:

1. Govt. will support approved/ sanctioned Startups to get free access to universities/ Libraries/ Govt. Laboratories/ SDCs (GIDC) / Center of Excellence / PSUs to support and facilitate innovative ideas/concepts.
2. For organizing Acceleration Programs in Gujarat any institution, would be assisted by providing financial assistance, as approved by SLEC, maximum up to the matching contribution to the expenditure incurred.
3. The project is entitled to avail of other benefits under the schemes for assistance to MSMEs.

For Startups:

Any individual/group of individuals having an innovative idea/concept and recommended by an approved Nodal Institution will be eligible to get recognized as a startup under this scheme.

The innovative project can be from any sector or any faculty/branch of science/ technology/ engineering/ agriculture/ healthcare and no innovation worth its name is restricted from availing assistance just because of its being in a particular sector, making this a sector agnostic scheme.



Note 1: An entity formed by splitting up or reconstruction of an existing business shall not be considered a 'Startup'.

Note 2: The startups which are availing incentives as a 'startup' in any other 'startup scheme' of the Government of Gujarat will not get incentives under this scheme. However, the startups/innovators availing benefits under the Student Startup and Innovation Policy (SSIP) would also be eligible to avail of assistance under this scheme.



For Nodal Institution:

Any University, Government approved/ affiliated/ recognized educational institution, Incubation center, PSU, R&D Institutions, private and other establishments operating in Gujarat.

The institution should be registered under the Companies Act-2013, rule of Section 8, as a 'non-profit making company'.

The institution should have separate spaces and engage full-time employees for the purpose.



For Mentor:

The mentor means a resource person who is registered under this scheme and associated/recommended by the Nodal Institution.

Offline

For Approval/Sanction as Nodal Institution



Step 1: An eligible Institution intending to promote startups shall submit its proposal on the online Portal to register itself as a Nodal Institution under this scheme.

Step 2: The registered Nodal Institution shall apply to the IC office with requisites in the prescribed format, for getting approval/sanction as a Nodal institution.

Step 3: The applications will be scrutinized by the Office of the Industries Commissioner and after due diligence, they will be placed before the SLEC for approval/ sanction.

Step 4: On approval from SLEC, the Office of Industries Commissioner will issue the Sanction letter to accord recognition as a Nodal Institution.



For Approval/Sanction of Startups:



Step 1: Eligible innovators/startups shall get registered on the online portal to avail of assistance under the scheme.

Step 2: The Registered Start-ups shall apply to Nodal Institution with requisites in the prescribed format.

Step 3: Nodal institutions shall evaluate, validate and recommend the startup project proposal to the office of the Industries Commissioner.

Step 4: The startup project proposals will be scrutinized by the Office of the Industries Commissioner and after due diligence, the startup project proposals will be placed before the SLEC for approval/ sanction.



Note: The Detailed procedures for approval/sanctions of Nodal Institutions/ Startups, conditions, and guidelines would be separately issued by the Office of the Industries Commissioner.

Component: Assistance for Seed Support



1. Pitch presentation with the following details:

Problem statement

Objective for the startup or innovation

Description of product/ service

How does it work?

USP/Uniqueness of the product/service

Target market and customers

Competition analysis – key competitors, the advantage of product/ service over competition, etc.

Detailed project cost breakup

Tentative action plan for the next 3-5 years

Revenue projections for the next 3-5 years

1. Evaluation matrix by Nodal Institution
2. Recommendation form by Nodal Institution (revised format is attached for reference)



The following non-mandatory documents are desirable to be attached to the application form:

1. Technical feasibility/ product testing report/certification (if any)
2. Financial feasibility report/certification (if any)



Component: Assistance for Skill Development



1. Informative document of the training program (brochure, leaflet, a letter from the host organization, etc.)
2. Receipt of fees paid for participating in the training program
3. Certificate of completion of the training program, clearly indicating the name of the participants (founder/co-founders of startup)



Component: Acceleration Program



1. Informative document of the acceleration program (brochure, leaflet, a letter from the host organization, etc.)
2. Details of fees to be paid for participating in the acceleration program – preferably on the letterhead of the host organization
3. Feedback report (as per the format attached) within 1 month after attending the acceleration program. Please attach the following mandatory documents along with the feedback report:
4. Receipt of fees paid for enrolling and participating in the acceleration program
5. Certificate of participation (clearly indicating the name of the startup/ each participant)



Component: Assistance to startups having a significant impact on Society



1. Pitch presentation with the following details:

Social issue that a startup intends to address

Mission of the startup

Vision of the startup

Description of product/ service

How does it work?

Tentative action plan for the next 3-5 years

Details of the stakeholders who benefited from the social impact generated by the startup

Describe the measurable social impact generated by the startup. You must support it with photographs, interviews/testimonials of stakeholders/beneficiaries, recognitions or achievements, etc.

Describe the non-measurable social impact generated by the startup. You must support it with photographs, interviews/testimonials of stakeholders/beneficiaries, recognitions or achievements, etc.

1. Evaluation matrix by Nodal Institution
2. Recommendation form by Nodal Institution (format is attached for reference)