What is a Startup Incubator?
A startup incubator is a collaborative program designed to help new start-ups succeed. Incubators help entrepreneurs solve some of the problems commonly associated with running a startup by providing workspace, seed funding, mentoring and training (see list below for a more extensive list of common incubator services). The sole purpose of a startup incubator is to help entrepreneurs grow their businesses.
Startup incubators are usually non-profit organizations, which are usually run by both public and private entities. Incubators are often associated with universities, and some business schools allow their students and alumni to take part in these programs. There are several other incubators, however, that are formed by governments, civic groups, startup organizations or successful entrepreneurs.
Having any robust business plan to take your startup to next level?
To promote startup and make a country of Job Creators Government of India launches many schemes to assist early-stage startup and make them successful. Here are some of the nodal agencies or approved Incubators by the Government. Please find below-mentioned list of services provided by Incubator to scale up the startup:
- Help with business basics: Incubator will provide guidance in developing business basics that is unique and brings value proposition.
- Networking Opportunities: Incubator will help startups by bringing business parties together and increasing the network of startups at the global level that will help startups in gaining a competitive advantage.
- Marketing Assistance: Incubator is the one who provides marketing assistance as per their organization scheme or Government established schemes which is eligible to a startup that will help startup to scale up.
- Mentoring Support: Incubator will help startups by providing mentorship from an expert in the field to develop business models, go-to marketing strategy, and value proposition for their business or startup.
- Development of prototype or proof of concept: Incubator will assist early-stage or startup at ideation stage to develop prototype or proof of concept which means to develop a sample or model or release of a product built to test a concept or process.
- Support in fundraising: Incubator will provide support in raising funds through making connections with strategic partners, angel investors, venture capitalist,s or various government schemes along with add-on service such as shared resource pool, help with presentation skills, Accounting/Financial management assistance as well as co-working space also.
So as mentioned above, there are Government Schemes also to support startups:
Scheme for assistance for start-ups/Innovation-Gujarat Industrial Policy 2020:
- Assistance up to INR 30 lakh as seed support to the start-ups.
- Sustenance allowance of INR 20,000 per month to the start-ups and INR 25,000 per month to women-led start-ups for a period of one year.
- Assistance up to INR 1 lakh per startup for obtaining training in soft skills on a reimbursement basis.
- Additional assistance up to INR 10 lakh for the start-ups generating significant impact on the society.
- Assistance up to INR 3 lakh to enroll and participate in national/international recognized acceleration program.
- For mid-level Pre-Series A funding of start-ups, a separate fund under Gujarat Venture Finance Limited (GVFL) for smaller ticket funding between INR 50 lakh to INR 3 crore
- Additional 1% Interest Subsidy, maximum up to 9% on term loans to applicant under the provisions of scheme for assistance to MSMEs.
Student Startup and innovation policy by education department:
- Up to INR 2 Lakh support for the creation of Proof of Concept (POC) or Minimum Viable Prototypes (MVP).
- Intellectual Property Rights (IPR) support up to INR 25,000 for each innovation.
To gain the advantage of this scheme one startup needs to go for an incubation program where the startup will follow the process as mentioned below:
Step 1: Innovator with startup idea will apply to have to apply at incubation center by considering various factors like location, the scope of the incubator, number of incubates over there, etc.
Step 2: Incubator will help startup to develop prototype or proof of concept and developing and implementing go to market strategy that will scale up the startup.
Step 3: Incubator will recommend the name of the startup and do the general process of application to avail the benefit under the scheme.
Step 4: After screening of the project by the department the jury will set a meeting to evaluate the project and after successful approval department will release the grant to the Incubation center.
Step 5: Incubation will release the grant according to the business idea or projections of the startup over the period to successfully launch the startup.
So, this is all about an incubation program where your ideas will come true and alive. Let us know if you have any kind of problems or difficulties! Write us at startup@rmpsco.com
