Tag Archive for: IIM Lucknow seed fund

,

How to Apply for the Seed Fund Incubator at IIM Lucknow Enterprise Incubation Centre

IIM Lucknow Enterprise Incubation

Introduction

In the dynamic landscape of India’s startup ecosystem, securing early-stage funding is pivotal for transforming innovative ideas into successful ventures. The IIM Lucknow Enterprise Incubation Centre (IIML EIC), situated at IIM Lucknow’s Noida campus, stands as a beacon for aspiring entrepreneurs. Established as a Section 8 company (not-for-profit), IIML EIC is supported by the Department of Science & Technology (DST), Government of India, and the Uttar Pradesh State Government under their Startup & IT policies. The centre aims to nurture high-performance startups, particularly in sectors like Artificial Intelligence (AI), Blockchain Technology, Industrial Internet of Things (IIoT), Digital Healthcare, Cloud Services, Virtual Reality, and 3D Printing.

1. Overview of Seed Funding Programs at IIML EIC

IIML EIC offers several seed funding schemes to support early-stage startups:

a. IIML-Venture Fund

  • Eligibility: Startups incubated at IIML EIC with at least 51% shareholding by Indian promoters.

  • Fund Size: Up to ₹25 lakhs.

  • Instrument: Compulsory Convertible Preference Shares (CCPS).

  • Focus: Tech-driven startups with high potential and national impact.

b. NIDHI Seed Support Program (NIDHI-SSP)

  • Eligibility: Startups with a minimum of three months of incubation at IIML EIC.

  • Fund Size: Up to ₹50 lakhs.

  • Instrument: Equity or Quasi-Equity Instruments, such as Optionally Convertible Debentures (OCD) or Convertible Debentures (CCD).

  • Objective: To provide financial assistance to startups with promising ideas and technologies.

c. Startup India Seed Fund Scheme (SISFS)

  • Eligibility: Startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), incorporated not more than two years ago.

  • Fund Size: Up to ₹50 lakhs.

  • Instrument: Optional Convertible Debt.

  • Objective: To provide financial assistance for Proof of Concept, Prototype Development, Product Trials, Market Entry, and Commercialization.

2. Eligibility Criteria for Seed Fund at IIML EIC

To apply for seed funding at IIML EIC, startups must meet the following criteria:

  • Incorporation: The startup must be a registered company in India.

  • Promoter Shareholding: At least 51% shareholding by Indian promoters.

  • Recognition: The startup should be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).

  • Incubation: For NIDHI-SSP, a minimum of three months of incubation at IIML EIC is required.

  • Stage: Startups should be in the early stages of development, typically post-MVP and pre-revenue or early revenue stages.

  • Sector Focus: Startups operating in sectors such as AI, IIoT, Digital Healthcare, Blockchain, Cloud Services, VR, and 3D Printing are preferred.

3. Application Process

The application process for seed funding at IIML EIC involves the following steps:

a. Initial Application

  • Form: Startups need to submit an online application form available on the IIML EIC website.

  • Details Required:

    • Company Information: Name, registration details, and sector.

    • Project Information: Description of the startup’s product/service, technology, and market opportunity.

    • Team Details: Information about the founding team, their roles, and expertise.

    • Financials: Projected financials, funding requirements, and utilization plans.

b. Screening and Shortlisting

  • Review: The IIML EIC team reviews all applications to shortlist startups that align with the funding criteria and objectives.

  • Criteria: Alignment with sector focus, innovation, scalability, and potential impact.

c. Pitch Presentation

  • Invitation: Shortlisted startups are invited to present their business ideas to a panel of mentors and investors.

  • Content: The pitch should cover the problem being solved, the solution offered, market potential, business model, and financial projections.

d. Due Diligence

  • Assessment: Post-presentation, IIML EIC conducts a thorough due diligence process to assess the startup’s viability, market fit, and readiness for investment.

  • Documents: Startups may be required to provide additional documents such as Intellectual Property (IP) rights, legal compliances, and customer testimonials.

e. Selection and Onboarding

  • Decision: Based on the evaluation, selected startups are offered seed funding and onboarded into the incubation program.

  • Support: Startups receive funding, mentorship, access to infrastructure, and networking opportunities to accelerate their growth.

4. Benefits of Joining IIML EIC

Startups selected for seed funding at IIML EIC gain access to:

  • Funding: Seed capital to support product development, market entry, and scaling.

  • Mentorship: Guidance from experienced entrepreneurs, industry experts, and investors.

  • Infrastructure: Access to state-of-the-art facilities, including AI & IoT labs.

  • Networking: Opportunities to connect with potential investors, partners, and customers.

  • Training: Workshops and programs to enhance entrepreneurial skills and business acumen.

5. Success Stories

IIML EIC has a proven track record of nurturing successful startups. Notable success stories include:

  • Startup A: Secured ₹30 lakhs in seed funding through the IIML-Venture Fund and expanded its operations nationally.

  • Startup B: Received ₹50 lakhs under the NIDHI-SSP and achieved commercial viability within a year.

  • Startup C: Utilized ₹40 lakhs from the Startup India Seed Fund Scheme to develop a market-ready product and attracted angel investment.

6. Tips for a Successful Application

To enhance the chances of selection, startups should:

  • Clear Value Proposition: Articulate the problem being solved and how the solution is unique and valuable to the target market.

  • Demonstrated Traction: Provide evidence of product development, customer interest, or early revenue.

  • Strong Team: Highlight the strengths and complementary skills of the founding team.

  • Scalability Plan: Outline a clear strategy for scaling the business, including marketing, operations, and financial projections.

  • Market Understanding: Show a deep understanding of the target market, customer needs, and competitive landscape.

7. Contact Information

For more details or assistance:

Conclusion

The IIM Lucknow Enterprise Incubation Centre offers a valuable opportunity for early-stage startups to secure seed funding and accelerate their growth. With a comprehensive support system that includes funding, mentorship, infrastructure, and networking, IIML EIC plays a pivotal role in nurturing innovation and entrepreneurship in India. By meeting the eligibility criteria and following the application process, startups can leverage IIML EIC’s resources to transform their ideas into successful ventures.