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Funding Landscape in India for Technology Startups

by Vibhor Jindal, Magesh Nandagopal, V. Premnath

(funding@venturecenter.co.in)

Last Updated on: 06 Nov, 2012

Featured as a cover story in DARE magazine, Nov 2009. For full article click here

                                             
                                                 
               
                                                 
                                               
                                                   
           

A) Technology development funds


[1, 9, 10, 13, 14, 17, 18, 19, 21, 22, 31, 42, 43, 45, 46, 49, 50, 51, 53]
                         
                                                   
            

B) Funds for patent protection


[3, 4, 6, 10, 11, 12, 16, 20, 31, 34, 38, 39, 40, 42, 43, 46, 49, 53]
                     
                                                   
          

C) Technology in-licensing funds


[5, 6, 34, 42, 43, 46, 48, 53]
                 
                                                   
                  

D) Technology scale-up/validation/de-risking funds


[2, 3, 4, 5, 6, 9, 10, 12, 13, 14, 15, 17, 18, 19, 20, 22, 25, 26, 27, 28, 29, 30, 34, 37, 40, 41, 42, 43, 44, 45, 46, 48, 49, 51, 53]
         
                                                   
                            

E) Market entry funds


[4, 5, 7, 8, 11, 12, 13, 14, 15, 18, 19, 20, 23, 24, 25, 26, 27, 28, 29, 30, 35, 37, 41, 44, 45, 46, 48 , 53]
         
                                                   
                                    

F) Expansion funds


[5, 7, 8, 11, 23, 24, 25, 26, 27, 28, 29, 30, 32, 33, 36, 37, 44, 45, 48 , 52, 53]
 

Venture Center assists entrepreneurs who wish to apply for these schemes, and we are official intermediaries for some schemes (eg. MoMSME’s - Support for Entrepreneurial and Management Development of SMEs). If you wish to avail Venture Centers’ assistance for government funding schemes, please check out our Advisory Services.

S.No. Organization Sub-Department / Committee Scheme Funding Amount Target Purpose Provides Funds For
1 Department of Scientific & Industrial Research (DSIR) Technopreneur Promotion Programme (TePP)  Phase I: Micro Technopreneurship Support (TS) Rs. 75,000 subject to 90% of approved project cost Students / Individuals / Entrepreneurs Grant for creating lab model / computer model A
2 Department of Scientific & Industrial Research (DSIR) Technopreneur Promotion Programme (TePP)  Phase I: TePP Project Fund (TPF) Rs. 15,00,000 subject to 90% of total project cost Individuals / Entrepreneurs / Start-ups Grant to convert invention into a working prototype D
3 Department of Scientific & Industrial Research (DSIR) Technopreneur Promotion Programme (TePP)  Phase II: Supplementary TePP Fund (STF) Rs. 7,50,000 subject to 90% of total project cost Individuals / Entrepreneurs / Start-ups Grant to carry out value added work such as  product features, protection by patenting, aesthetic design etc,  B,D
4 Department of Scientific & Industrial Research (DSIR) Technopreneur Promotion Programme (TePP)  Phase II: Seamless Scale-up Support for
TePP projects (S3T)
Rs. 45,00,000 subject to 50% of total project cost Individuals / Entrepreneurs / Start-ups Grant to enhance product features, IP protection, limited production for test marketing B,D,E
5 Department of Scientific & Industrial Research (DSIR)   International Technology Transfer Programme (ITTP) Up to Rs 1 crore sanctioned in recent projects Entrepreneurs / Industry / Institutions Grant to promote international technology transfer and trade including exports of technologies, projects, services and technology intensive products. C,D,E,F
6 Ministry of Micro Small Medium Enterprises (MoMSME) Office of the Development Commissioner Support for Entrepreneurial and Management Development of SMEs through Incubators Rs 4 to 8 Lakhs, subject to 75% to 85% of project cost Micro, Medium and Small Scale Industries Provides Grant to technology start-ups for prototyping and getting mentoring etc to build their companies B,C,D
7 Ministry of Micro Small Medium Enterprises (MoMSME)   Marketing Assistance Scheme Up to Rs 5 Lakh  support for attending domestic and International exhibitions MSMEs / Entrepreneurs Grant to take part in exhibitions for Marketing E,F
8 Ministry of Micro Small Medium Enterprises (MoMSME) Office of the Development Commissioner Market Development Assistance Scheme Upto Rs 1.25 Lakhs. 75% for General category Entrepreneurs and upto 100% for Women / SC / ST entrepreneurs Micro and Small Scale Enterprises Provides Air Fare and rental charges to take part in International Trade Fairs / Exhibitions E,F
9 Department of Science and Technology (DST) Technology Transfer Division Instrumentation Development Programme Up to Rs 35 Lakh sanctioned in recent projects, grant for technologists in academic institutions / soft loans or equity partnership with entrepreneurs Scientists / Technologists / Entrepreneurs To develop analytical, environmental montoring, laser based, medical, food processing, geo-scientific, agri electronic instruments and sensors A,D
10 Department of Science and Technology (DST) Technology development Water Technology Initiative (WTI) Programme Up to Rs 1 crore sanctioned in recent projects, grant for technologists in academic institutions / grant to cover 50% cost of consumables for Industry-Institution partnership Scientists / Technologists / R&D Labs To develop low cost domestic purification technologies, otions for disposal of scientific waste, initiating application of nano-technology A,B,D
11 Small Industries Development Bank of India (SIDBI) SIDBI Ventures SME Growth Fund Rs 2 crore to Rs 25 crore Small and Medium Enterprises (SMEs) Equity Investment in wide range of growth sectors, such as life sciences, retailing, light engineering, food processing, information technology, infrastructure related services, healthcare, logistics and distribution, etc. D,E,F
12 Department of Science and Technology (DST) Technology Development Board (TDB) 1) Technology Development Board Depends on Project (in Lakhs) Entrepreneurs / Industry / Institutions Loan @ 5-6% / Equity Partnership for working in indigenous technologies B,D,E
2) Guidelines
3) Presentation by TDB Coordinator
13 Department of Bio-Technology (DBT)   Small Business Innovation Business Research Initiative (SBIRI) Phase 1 Upto Rs 1 Crore, upto Rs 50 Lakh as grant and rest as soft loan Biotech Companies / Entrepreneurs Early Stage Funding for high risk, innovative ideas/products for commercialization A,D,E
14 Department of Bio-Technology (DBT)   Small Business Innovation Business Research Initiative (SBIRI) Phase 2 Soft Loan upto Rs 10 Crores Biotech Companies / Entrepreneurs Early Stage Funding for high risk, innovative ideas/products for commercialization A,D,E
15 National Research Development Corporation (NRDC)   Angel Fund Rs 10 Lakh to Rs 30 Lakh Entrepreneurs / Incubatees at Business Incubators Angel Funding through incubators set up by Department of Science and Technology (DST) D,E
16 National Research Development Corporation (NRDC)   NRDC IPR LINE All costs relating to Patenting Inventors Financial and Technical support for patenting of Inventions B
17 National Research Development Corporation (NRDC)   Innovation Invention Program (Support to Inventors) Rs 2 lakh Inventors Awards to stimulate the spirit of inventiveness A,D
18 Department of Information Technology (DIT)   Multiplier Grants Scheme upto Rs 2 crore or upto Rs 4 crore depending on the industry, R&D lab partnership Industry-R&D institution partnership Grant to create indigenous products/packages A,D,E
19 Department of Information Technology (DIT)   R&D Projects Funding Not mentioned, Industry will get upto 50% of project cost Industry / R&D institute / Academic Institute Grant to encourage R&D projects in fields of ICT A,D,E
20 National Innovation Foundation (NIF)   Micro Venture Innovation Fund (MVIF) up to Rs 10-15 Lakhs Innovator / Entrepreneur Soft Loans for unaided, Green, Grassroots’ technological innovation or a traditional knowledge practice B,D,E
21 Department of Bio-Technology (DBT)   Various schemes under Department of Bio-Technology Not Mentioned Different schemes have different target audience and proposal are called through out the year. Proposal relate to Bioengineering, Bioinformatics, environment, food, HRD, Medicine, Nanoscience, societal programs etc Mostly Grants, some loans are also provided under different schemes.  Website is updated as and when new proposal are called for.  A
22 Department of Bio-Technology (DBT)   Animal /  Agriculture / Marine  Biotechnology/ Bioresource Programme Not Mentioned Individuals / Institutions Grant for pursuing R&D work to create products and improve processes in Aquaculture and Marine Biotechnology A,D
23 Karnataka Information Technology Venture Capital Fund (KITVEN)   KITVEN Fund -2 Rs 1 crore to Rs 2.5 Crore Pvt Ltd Companies looking for series A financing VC fund providing equity capital for Investment in IT, Bio-Tech, Nano-Tech and other knowledge based industries E,F
24 Kerala Venture Capital Fund   KVCF Rs 25 Lakh to Rs 1.75 Crore Pvt Ltd Companies looking for series A financing VC fund providing equity capital for Investment in IT, and Bio-Tech companies E,F
25 Ministry of New and Renewable Energy   Energy Recovery from Urban Wastes  Rs 1.5 crore / MW for setting up power plants Entrepreneurs, Project Developers etc Grants for generating power through two stage process, first producing RDF and then combustion D,E,F
26 Ministry of New and Renewable Energy   Energy Recovery from Urban Wastes  Rs 2 crore / MW for setting up power plants Entrepreneurs, Project Developers etc Grants for setting up power plants based on high rate biomethanation tech D,E,F
27 Ministry of New and Renewable Energy   Energy Recovery from Urban Wastes  Rs 3 crore / MW for setting up power plants, subj to 50% of project cost Entrepreneurs, Project Developers etc Grants for setting up demonstration projects based on gasification / pyrolysis and plasma arc technologies.  D,E,F
28 Ministry of New and Renewable Energy   Energy Recovery from Urban Wastes  Rs 2 crore / MW for setting up power plants, subj to 40% of project cost Entrepreneurs, Project Developers etc Grants for generation of power from biogas being produced at Sewage Treatment Plants. D,E,F
29 Ministry of New and Renewable Energy   Energy Recovery from Urban Wastes  Rs 3 crore / MW for setting up power plants, subj to 50% of project cost Entrepreneurs, Project Developers etc Grants for generation of power from biogas being produced at Sewage Treatment Plants. D,E,F
30 Ministry of New and Renewable Energy   Energy Recovery from Urban Wastes  Multiple schemes with different limits for different power sources, Please check website under Distributed Renewable Power Entrepreneurs, NGOs, government agencies etc Grants for generation of power in fields of Small Wind Energy, Small Hydro, Biomass Power, Biomass Pacifier and Biogas Power D,E,F
31 Ministry of New and Renewable Energy   Energy Recovery from Urban Wastes  Not Mentioned, funds for R&D / IP only, 50% cost from Industry Industry - Institute Collaboration Grants for carrying out R&D projects in field of Renewable energy. A,B
32 Ministry of Micro Small Medium Enterprises (MoMSME) Office of the Development Commissioner Credit Guarantee Fund Scheme for Micro and Small Enterprises Collateral Free Credit upto Rs 50 Lakh Micro and Small Scale Enterprises Loans for working capital as well as term loans are provided. F
33 Ministry of Micro Small Medium Enterprises (MoMSME) Office of the Development Commissioner Credit Linked Capital Subsidy Scheme (CLCSS)  Loans upto Rs 1 crore, upfront capital subsidy upto 15% for technology upgradation Small Scale Industry (SSI) including tiny, khadi, village or coir industrial units Loans to upgrade Plant and Machinery F
34 Incubator Related Seed Funds   1) Venture Center Rs 10-20 Lakhs Entrepreneurs Equity Investment in startup companies who incubate at these centers  B,C,D
2) Society for Innovation and Entrepreneurship (IIT-B)
3) Centre for Innovation, Incubation and Entrepreneurship (IIM-A)
4) SIDBI Innovation and Incubation Centre (IIT-K)
5) National Institute of Design
6) JSS Academy of Technical Education - STEP (JSSTE-STEP)
7) Vellore Institute of Technology - Technology Business Incubator (VIT-TBI)
8) Tiruchirappalli Regional Engineering College - STEP (TREC - STEP)
9) PSG College of Technology - STEP (PSG-STEP)
10) Sri Jayachamarajendra College of Engineering - STEP (JSSCE-STEP)
11) Kongu Engineering College - TBI (TBI-KEC)
12) International Crops Research Institute for the semi-Arid Tropics (ICRISAT)
13) National Institute of Technology – Karnataka STEP(NITK-STEP)
14) Rural Technology Business Incubator (IIT-M)
15) Amity Technology Incubator
16) Amrita Vishwa Vidhyapeetham- TBI
35 Angel Networks   1) Indian Angel Network Chapters in Mumbai, Delhi, Bangalore & Pune
Rs 75 Lakh to Rs 2.5 Crore
Rs 1 Crore to Rs 2.5 Crore
Rs 25 lakhs to Rs 2 Crore
Entrepreneurs Various Angels in India who make Equity investments in companies that have reached Market Entry Phase E
2) Mumbai Angels
3) The Chennai Angels
4) The Hyderabad Angels
36 Venture Capitalists   1) Indian Venture Capital Association (IVCA) Rs 5 crore and above Entrepreneurs, SMEs Different VCs in India who make Equity investments in companies that have reached Expansion phase F
2) SEBI List of VCs in India
37 Small Industries Development Bank of India (SIDBI)   Direct Finance  Rs 10 Lakh and above Entrepreneurs, SMEs Term Loans from SIDBI and other banks for various activities such as Technology upgradation, Infrastructure development etc. A brief summary of schemes is available here D,E,F
38 Ministry of Micro Small Medium Enterprises (MoMSME) National Manufacturing Competitiveness Council (NMCC) Assistance for Grant on Patent/ GI Registration  Rs 25,000 for domestic patents and Rs 2 Lakh for foreign patents MSMEs Grant after the patent has been obtained by the organisation B
39 Ministry of Communication and Information technology (MIT) Department of Electronics and Information Technology Support International Patent Protection in Electronics and IT (SIP-EIT)  50% or upto Rs 15 Lakh for filling International patent MSMEs, Institutes, Incubators Reimbursement of actual patent filling cost in Electronics / ICT areas with patent application already filed in India. Covers all costs. B
40 Department of Bio-Technology (DBT)   Biotechnology Industry Partnership Programme (BIPP)   In Rs Crores, mainly for larger projects. Grant, Cost sharing and soft loans depending on partnership mode Small, Medium and large companies involved in R&D Scheme caters to high risk, transformational technology / process development. B,D
41 Department of Scientific & Industrial Research (DSIR)   Technology Development and Demonstration Program (TDDP)  Grants / Loans, subject to maximum of Rs 250 Lakh Start-ups possessing protected / licensed IP Funds for accelerated product development in 9-12 months for faster market entry. D,E
42 Council of Scientific & Industrial Research (CSIR)   New Millennium Indian Technology Leadership Initiative (NMITLI)   Grants for Public Institutions and Soft Loan for Private Sector Companies. In few crore Rs for 2 years Small, Medium and large companies involved in R&D and Public Institutions Funds for scientific projects where markets and technology risks are high. A,B,C,D
43 World Bank & ICICI Bank collaboration Technology Finance Group (ICICI Bank) Sponsored Research & Development (SPREAD) Program   Rs 10 Lakhs to Rs 5 crores, 6% interest, 1.5-2 yrs moratorium period Private Companies conducting research in partnership with public R&D Institutes Provide loans to promote technology development by private sector in partnership with Technology Institutions like CSIR labs, IITs etc A,B,C,D
44 Small Industries Development Bank of India (SIDBI) Risk Capital Fund for MSMEs   Rs 25 Lakh to Rs 5 Crore. Subordinated debt upto 33% of post project tangible networth of the enterprise. MSMEs in auto, engineering, pharma, textiles, software, IT/ITES, EOUs etc Provides equity capital, convertible debt to a company without requirements of collateral. A sample application form is available here D,E,F
45 NABARD NABARD-SDC Rural Innovation Fund (RIF)   Upto 95% of total project outlay in grants and/or loans; current project funding ranges from Rs 4 lakh to Rs 44 lakh Entrepreneurs To promote innovation in farm, rural non-farm and micro-finance sectors A,D,E,F
46 Accelerators   1) HeadStart Ventures
Betweem Rs 50 lakh to Rs 1 Crore for a equity stake of 5-20%
Upto Rs 5 lakh for a equity stake of 7-12%
Upto Rs 2 Crore for a equity stake of 25-40%
Upto 12% equity stake for mentoring services; Upto 20% if seed funding (between Rs 5-50 lakh) is given
Upto Rs 5 lakh
Entrepreneurs To Facilitate entrepreneurs already with ideas and assist in early stages of venture development; To work with them to develop/provide new ideas and turn those into new ventures A,B,C,D,E
2) Morpheus
3) i2india Ventures
4) Setu Ventures



5) CIIE/iAccelerator
47 DRDO DRDO Defence Technology Development Fund (DTDF)   N/A (news announcement made; scheme details not known) SMEs and the private sector To promote high-risk development tasks N/A (news announcement made; scheme details not known)
48 Technology Information, Forecasting and Assessment Council (TIFAC)-Small Industries Development Bank of India (SIDBI)   TIFAC-SIDBI Revolving Fund for Technology Innovation Programme(SRIJAN)   Soft loan up to Rs.1,00,00,000 subject to 80% of total project cost (interest rate up to 5%) Entrepreneurs / Start-ups/Companies To facilitate development and commercialization of innovative technology projects pertaining to new product / process / applications C,D,E,F
49 Bill and Melinda Gates Foundation, IKP Knowledge Park   IKP Grand Challenges Exploration   USD 100,000 for Phase I; Phase II funding upto USD 1 million Students, Researchers, Faculty, SMEs, Non-profit organizations To identify, fund and nurture ideas that address global health challenges A,B,D
50 Department of Biotechnology BIRAC (Biotechnology Industry Research Assistance Council) Biotechnology Ignition Grant Scheme (BIG)   Upto Rs 50 Lakhs Incubatees (Students / Researchers / Entrepreneurs) or a Registered Company (Biotech Startups) To establish and validate proof-of-concept and to enable creation of spinoffs A
51 Department of Bio-Technology (DBT) Biotechnology Industry Research Assistance Programme (BIRAP) Contract Research and Services (CRS)   Not mentioned Universities, Research Institutes can apply with pre-determined industry partner having a DSIR recognized R&D unit For validating technology, proof-of-concept work utilizing contract research services A,D
52 Small and Medium Enterprise Stock Exchanges   1) BSE-SME Platform In Crores (Companies have raised between Rs 5-21 Crore) Small and Medium Scale Enterprises with track record of 3 years of operations and 2 years of positive net worth or distributable profits For capitalizing SMEs F
2) NSE Emerge Platform
53 Venture Funds with Govt. of India Involvement NASSCOM and IKP Knowledge Park 1) India Innovation Fund (IIF) Investments between Rs 1 Crore- 5 Crore Startups/Entrepreneurs To support startups based on technology innovation in ICT, Life Sciences, Medical Devices sectors D,E,F
IIM-A, TDB, MNRE, BP 2) INFUSE (Indian Fund for Sustainable Energy) Equity investment of upto Rs 1 Crore for early stage ventures; Between Rs 4-6 Crore for other ventures Startups/Entrepreneurs To fund entrepreneurs/startups in the area of sustainable energy A,B,C,D,E,F

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