STARTUP

INDIA
Compendium of Best
Practices
2019
 7 PILLARS SUPPORTING THE STARTUP
ECOSYSTEM

INSTITUTIONAL SIMPLIFIED EASING PUBLIC INCUBATION SEED FUNDING VENTURE FUNDING AWARENESS
SUPPORT REGULATIONS PROCUREMENT SUPPORT SUPPORT SUPPORT AND OUTREACH

Pillar Pillar Pillar Pillar Pillar Pillar Pillar

1 2 3 4 5 6 7

1. Institutional support – It covers states’ best practices to develop a startup ecosystem that includes availability of a startup
policy, nodal department, mentors and partnerships in a state
2. Simplified regulations – It covers states’ support in simplifying the regulatory regime for startups and building a strong business
compliance mechanism
3. Easing public procurement – It includes states’ initiatives in relaxing public procurement guidelines for startups
4. Incubation support – It includes states’ initiatives in setting up incubators, allocation of seats and providing acceleration support
to startups
5. Seed funding support – It covers states’ initiative in formulating seed funding guidelines and making an online system available
for managing seed funding for startups
6. Venture funding support – It includes states’ support in setting up venture funds or fund of funds
7. Awareness and Outreach – It covers states’ efforts taken in creating awareness through various measures such as conducting
bootcamps and hackathons for startups

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 3

 TABLE OF
CONTENTS
INSTITUTIONAL SUPPORT 07 Karnataka 76
Kerala 78
Overview 08 Odisha 80
Snapshot of best practices & impact 09 Tamil Nadu 82
Statewise details on best practices 11 Statewise details on best practices from
Gujarat 12 previous year 84
Karnataka 15 Uttar Pradesh 84
Kerala 18 Himachal Pradesh 85
Maharashtra 23 Telangana 86
Odisha 26 Andhra Pradesh 88
Rajasthan 29 Chattisgarh 90
Statewise details on best practices from
previous year 33
SEED FUNDING SUPPORT 91
Bihar 33
Andhra Pradesh 35
Overview 92
SIMPLIFYING REGULATIONS 37 Snapshot of best practices & impact 93
Statewise details on best practices 96
Overview 38
Bihar 96
Snapshot of best practices & impact 39
Chhattisgarh 97
Statewise details on best practices 43
Kerala 98
Jharkhand 43
Maharashtra 100
Karnataka 44
Odisha 101
Kerala 46
Rajasthan 102
Madhya Pradesh 47
Statewise details on best practices from
Odisha 48 previous year 103
Telangana 50 Karnataka 103
Uttarakhand 51
Statewise details on best practices from
VENTURE FUNDING SUPPORT 104
previous year 52
Gujarat 52
Rajasthan 53 Overview 105
Maharashtra 54 Snapshot of best practices & impact 106
Statewise details on best practices 108
EASING PUBLIC PROCUREMENT 55 Gujarat 108
Overview 56 Kerala 110
Snapshot of best practices & impact 57 Maharashtra 111
Statewise details on best practices 60 Rajasthan 112
Gujarat 60 Statewise details on best practices from
previous year 113
Haryana 61
Karnataka 113
Karnataka 62
Uttar Pradesh 114
Kerala 63
Maharashtra 64
Odisha 65 AWARENESS AND OUTREACH 115
Statewise details on best practices from
previous year 66 Overview 116
Rajasthan 66 Snapshot of best practices & impact 117
Statewise details on best practices 119
INCUBATION SUPPORT 67
Gujarat 119
Overview 68 Maharashtra 123
Snapshot of best practices & impact 69 Rajasthan 125
Statewise details on best practices 73 Odisha 127
Gujarat 73 Kerala 128
Jharkhand 75 Karnataka 131

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 5

Outline

The contextual knowledge of each

pillar has been divided into three
parts.

01
FIRST, an overview covering the list of
states and UTs that have performed
well under each pillar and an ideal
practice under the stated pillar

02
SECOND, is a snapshot of the
best practices undertaken by
the states and UTs against the
pillars and its impact thereof

03
THIRD, a detailed
assessment on best
practices undertaken by
states and UTs under the
pillar

04
FOURTH, is a detailed
assessment on the best
practices from the previous
year undertaken by states
under the pillar

6 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

PILLAR INSTITUTIONAL

01 SUPPORT

OVERVIEW 06

SNAPSHOT OF BEST PRACTICES & IMPACT 07

STATEWISE DETAILS ON BEST PRACTICES 10

STATEWISE DETAILS ON BEST PRACTICES

FROM PREVIOUS YEAR 31

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 7

01: Overview

List of featured states Ideal Practice

In a bid to encourage and promote local entrepreneurs,
GUJARAT individual state governments, through enabling policy
measures, have created a robust startup ecosystem. While
KARNATAKA the maturity of these ecosystems vary across states, steps
taken towards a good startup ecosystem include:
KERALA
1. Startup Policy
MAHARASHTRA 2. Nodal department, officer and team

ODISHA 3. Online implementation system

4. Mentor Network
RAJASTHAN
5. Intellectual Property (IP) Support
Featured states from 6. Partnerships
previous year 7. Women Entrepreneurship
8. Support from other departments
ANDHRA PRADESH
The critical elements of these initiatives undertaken by the
BIHAR state governments should help motivate, ideate, innovate
and hand hold entrepreneurs from cross section of society
to convert ideas into game changing business plans
which support states by way of employment and provide
innovative solutions to local issues. A proactive approach
through inter-departmental involvement seeking constant
feedback from various stakeholders and facilitating
appropriate change is essential to build a sustainable and
vibrant startup ecosystem.

8 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

02: Snapshot of Best Practices & Impact

01 02 03
GUJARAT KARNATAKA KERALA

SYNOPSIS: Gujarat has a well- SYNOPSIS: In Karnataka, startups SYNOPSIS: The Kerala Startup
structured startup ecosystem have been the drivers of change. Mission (KSUM) has created a
with focus on regulatory The bustling startup ecosystem vibrant start up ecosystem in
support. The state offers is supported by a well-defined the state. Apart from conducive
strong infrastructure support, a startup policy with provisions for policies and infrastructure, the
dedicated nodal department reimbursement of tax, patent startup ecosystem is supported
as well as a comprehensive and filing cost and marketing cost. well by other state departments. As
reliable online portal. The startups The ecosystem is supported by part of the Youth Entrepreneurship
are supported by educational a startup online portal, a nodal Development Programme, the
institutions, investor communities department and a startup cell. state has introduced various
and specific state policies. incentives and benefits for women
entrepreneurs.

IMPACT: Educational institutions IMPACT: The challenge for the IMPACT: Kerala has more than
have offered a platform to launch government is to replicate the 600 registered startups, 175 seed
incubators and co-working success seen in Bangalore to funded, seven venture funded and
spaces. The Electronics & IT policy other parts of the state. Thus, six incubator supported startups.
of the state aims to facilitate at policy interventions such as Apart from this, it has over 300
least 2000 startups and facilitate reimbursement of service tax incubatees and has awarded 26
investments worth USD 1 Billion. & GST, marketing incentives of purchase orders. Patent cost of
SSIP aims to build capacity for reimbursement of upto 30% of filing can be reimbursed upto INR
at least 200 premier educational actual cost – all help encouraging 2 lakh for domestic and INR 10 lakh
institutes, harness 500 student startups. As an illustration, cost of for international patents. More
startups in the next five years and filing patents reimbursements has than 250 startups have benefited
file at least 1000 patents. benefited more than 20 startups. from mentor network.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 9

 04 05 06
MAHARASHTRA ODISHA RAJASTHAN

SYNOPSIS: The startup ecosystem SYNOPSIS: Odisha has a well- SYNOPSIS: The state has a
in the state of Maharashtra defined startup policy and a reliable online implementation
focuses on Intellectual Property reliable online implementation system to help startups avail
Rights (IPR), incubation and seed system to avail incentives for incentives offered by the state
funding. The startup policy aims startups. It has set-up a startup government. Apart from this, the
to drive economic growth and cell with a dedicated team to state has a nodal department
job creation, especially in sectors aid startups and has also put in and a well-defined grievance
such as fintech, biotechnology, place a mechanism to provide redressal mechanism. Further,
artificial intelligence, internet of subsidies for intellectual property. the state has a dedicated startup
things and clean energy. The government also offers cell and a system in place to
benefits to promote women provide subsidies for intellectual
entrepreneurs. property. Women entrepreneurs
are provided specific incentives
to establish startups.

IMPACT: The state aims to attract IMPACT: The state currently IMPACT: Rajasthan has
angel and seed investments recognises 450+ startups under established cohesive partnerships
worth INR 5,000 crore, develop the Startup Odisha initiative. with educational institutions,
15 incubators to support at The government schemes corporate partners and investors
least 10,000 startups and create have helped reimburse cost for supporting startups. Cost of
500,000 direct and indirect of trademark and patent filing patent can be reimbursed
employment opportunities. The registrations for more than 20 upto INR 3 lakh and the provision
state policy has uniquely encoded startups. Government’s assistance has benefited more than 65
eight tenets, encapsulated for IP subsidy is upto INR 10 lakh. startups.
in the acronym LEAPFROG, i.e. The state has also formed strong
Lighten regulatory compliance, partnerships with educational
E-connect the ecosystem, institutions and international
Augment infrastructure, Partner organisations to foster the state’s
with industry, Funding startups, startup ecosystem.
Realising human potential,
organise competitions and events
and Governance.

10 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 07 08
ANDHRA BIHAR
PRADESH

SYNOPSIS: The state has SYNOPSIS: The state has provided

performed well to make strong institutional support
registration, online compliance, to startups by defining policy
tracking applications extremely incentives in its Startup Policy.
simple and transparent. It has a In addition, the state provides
mechanism to connect mentors special incentives to promote
with startups. It also has a women entrepreneurship. Finally,
unique dashboard to measure Department of Information
key performance indicators of a Technology has provisions to
startup ecosystem that compares incentivise technology-focused
achievements with the target. startups.

IMPACT: The state IMPACT: An event

has created 21 acceleration organised for startups by the
centers, incubated 52 startups, Department of IT saw participation
conducted 250 bootcamps of 1000+ startups across 14
and 12 hackathons. In addition, themes.
140 startups have received
acceleration support.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 11

03: Statewise details on best practices

GUJARAT

Startup Policy
The state’s startup policy is comprehensive in terms of its coverage of all the aspects of the startup ecosystem. It
has clear guidelines on the definition, the registration process and the incentives available for startups. The policy is
sector agnostic. Furthermore, the state has announced sector specific policies for startups, specifically in disruptive
sectors.
Some of these policies are listed below:

Gujarat Biotech Policy Electronics & IT/ ITeS Startup Policy 2016
The state has formulated a Biotechnology Policy in The state devised a separate policy for IT and
order to promote the biotechnology sector in the Electronics in order to meet the requirements
state and create entrepreneurial opportunities. The for additional support and nurturing for
policy aims to encourage research and development Electronics & IT/ ITeS startups. The policy
of technologies in the field of biotechnology , thereby aims to nurture the growth of incubators and
creating a strong intellectual property driven facilitate investment opportunities for startups
technology base in the state. The incentives under in this field
the policy include incentives for biotechnology park,
biotechnology units and biotechnology incubators
Gujarat Student Startup and Innovation
Policy 2017
Gujarat Science, Technology and Innovation The Student Startup & Innovation Policy aims to
(STI) Policy create an integrated, state-wide, university-based
The policy aims to incentivise startups with an aim innovation ecosystem to support innovations
to evolve solutions to complex issues of the public and ideas of young students and provide a
sector, which otherwise are difficult to implement conducive environment for optimum harnessing
due to lack of adoption opportunities or presence of their creative pursuit. The policy synergises
of procedural challenges. A dedicated Innovation complementary efforts by different stakeholders
Fund has been created under the policy which will while making strong efforts towards cultural
cater to the requirements of two schemes – one for change amongst students, pre-incubation
supporting research and development and the other support and other necessary measures required
for pilot deployment and testing of technologies in creating and nurturing student innovations and
support towards self- sustenance

12 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

Dedicated Startup Team
The state has a robust Startup Cell which comprises of a dedicated team to provide assistance to startups. In April
2018, the Industries Commissionerate was assigned as the nodal agency and the Industries Commissioner was
assigned as the nodal officer. Contact details of nodal department/agency and officers (with designation) and the
profiles of the dedicated team assigned for any startup are made available on the startup portal.

Startup Portal
The state’s startup portal is startupgujarat.in.
It is a highly interactive platform created to
initiate seamless registration of startups with
the government of Gujarat.
The startups can submit their application
for registration by submitting all documents
online. The status of the application is also
reflected online in real-time and can be
tracked accordingly. Once the startup is
registered successfully, they are issued
a registration certificate with a Unique
Registration Number (URN)
• A robust startup helpdesk has been set-up under the Gujarat Startup Cell at the Industries Commissionerate
office to receive and resolve queries via phone, e-mail and through the online portal
• The details of incubators and mentor registered with the portal are displayed in the public domain
• The details of the policy implementation dashboard are displayed on Gujarat’s startup portal

Intellectual Property Support

The state has a strong system in place to provide intellectual property assistance to startups in terms of provision
of subsidies for filing patents/ trademarks. The government of Gujarat offers IP support through its Education
Department which has issued the Student Startups and Innovation Policy (SSIP), which provides various provisions
to extend intellectual property rights’ support to startups. Following benefits related to IP support are provided in the
policy:
• University Level: Financial support for a period of five years up to INR crore for state universities and INR 2.5 crore
for private or self-financed universities to help startups in filing patents
• Institute Level: A grant of up to INR 2.5 lakh for filing an average of 10 national patents per annum and an additional
grant of up to INR 2.5 lakh for filing international patents. Further, a grant of up to INR 40 lakh to be disbursed to a
maximum of 40 eligible institutes per year

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 13

Partnerships
One of the key aspects of the state’s support system for startups is the number of incubators and accelerators
which have grown through partnerships between the state government and various business enterprises and
educational institutions

The business enterprises include both private and public sector organisations. Companies, such
as, Google, Cisco and Claris Capital are some of the renowned global organisations that have
established partnerships with state supported incubators in Gujarat

Stanford University, University of Toronto, Israel Institute of Technology, etc. are some of the
educational institutes that have established partnerships with the state

Startups have benefitted immensely under these partnerships through professional services,
mentorship, access to libraries and labs, software/ hardware tools and other lab equipment,
knowledge exchange, technology transfer and market linkages

Details of partnerships along with contact details are available on the state’s
startup portal

14 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 KARNATAKA

Startup Policy
The state has an exhaustive startup policy which provides tangible benefits to startups. The policy is largely
sector agnostic and the definition of a ‘startup’ is clearly defined in the policy. The policy envisaged that the
startup in the state should be technology based; however, it was altered through an amendment to the
definition of ‘startup’ in the policy, illustrated as follows:
• An entity working towards innovation, development or improvement of products or processes or services, or
if it is a scalable business model with a high potential of employment generation or wealth creation
• The entity must not be registered for more than 10 years. The entity must be registered in Karnataka
• The company should employ at least 50% of its total qualified workforce in Karnataka on a full-time basis

Dedicated Startup Team

The state has an established nodal department, the Department of Information Technology, Biotechnology, and
Science & Technology (S&T) for implementation of the policy. The development of startup ecosystem in the state is
examined by the Principal Secretary, Department of IT, BT and S&T as the nodal officer of the state.
The state has an exclusive startup cell which aims to promote the state of Karnataka as the ultimate startup
destination in the world.

Startup Portal
The policy is readily accessible on the Karnataka
startup portal: https://startup.karnataka.gov.in/ and
the operational guidelines on the portal specifies
details of availing the schemes and eligibility criteria
for startups in the state.
• On signing up on the portal, a startup can be
amicably registered as shown in the screenshot.
• On registration of an entity as a startup, the portal
allows them to claim reimbursement wherever
applicable which encourages the entities to register
themselves online and avail necessary benefits for
pertinent growth and development.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 15

The information available on the portal consists of:
• An online system for registration, tracking, issuance of registration certificate, online query resolution system, call
center number and incubation details (list of incubators, partner incubators and a list of incubatees)
• A publicly visible dashboard on the home page showing key highlights of startups in Karnataka It displays
partner’s information (booster kit, list of mentors, academic institutes, and intellectual property (IP)facilitation
centers)
• It also displays other details including funding details, operational guidelines document, incentives available and
reports.

Mentor Network
The state has created a robust mentor network comprising of experts from industry, academia and the startup
ecosystem. Startups in the state are able to seek guidance from experienced professionals from the Indian business
landscape. The portal provides an option to startups in the state to view the LinkedIn profile of each mentor and
connect with them. The portal displays a list of more than 100 registered mentors which in turn supports to build
relationships that helps startups in the state break the inequality of opportunity.

The scheme of ‘Unnati’ under the Social Welfare

Department of the state aims to provide a
comprehensive entrepreneurship platform for
Scheduled Castes/ Scheduled Tribes startups with
ideas that have a social impact. The maximum
funding that can be availed is up to INR 50 lakh,
which is a one-time grant disbursed over two years a
milestone basis to startups in the state. The state has
also collaborated with various other departments of
the Government to organise mentoring workshops.
The supporting departments are Department of
Agriculture, Department of IT, BT, and S&T, Department
of Industries and Commerce, Urban Development
Department, Department of Revenue and Disaster
Management and Department of Agriculture.

Intellectual Property Support

The Government of Karnataka provides support for filing patents to the beneficiaries in terms of offering
reimbursement. The reimbursement is made in two stages i.e. 75% post filing the patent and the balance 25% after
the grant of the patent. The reimbursement can be categorised as below:

FOR DOMESTIC PATENTS FOR FOREIGN PATENTS

The cost of filing and prosecution of patent application On a single subject matter,
is reimbursed to the incubated startup company to a up to INR 10 lakh is reimbursed
limit of INR 2 lakh per Indian patent awarded to the incubated startups

16 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

Partnerships
The Karnataka Government has partnerships with institutes which can be accessed by logging on to the portal.
The key international partnerships include those with Australia, Finland, France, Germany, Japan and a few other
countries. There have been delegation visits by notable representatives from these countries for workshops and/
or collaborations. The state Government also has certain academic partnerships with institutes for courses and/ or
research. Some of the notable institutes include Indian Institute of Science (IISC) and the Manipal University.

Women Entrepreneurship
Catalyst for Women Entrepreneurship (CWE) being a business Incubator of the Government of Karnataka
provides space for women entrepreneurs with tech enabled enterprises in Bangalore. The incubator provides
20 seats and facilities for 12 months at the K-Tech Innovation Hub by ‘NASSCOM 10K Startup’ warehouse. The
CWE platform provides mentoring and access to finance, markets, enabling technology, information and
trade networks to the selected entrepreneurs and enables them to attain success and profitability in their
businesses. The policy highlights the following provisions for women entrepreneurs:
• Reserving 10% incubation space for women entrepreneurs
• Ensuring one-third representation of women entrepreneurs, students and teachers.
• Working of female employees in 3-shift operations with availability of general permission to operate during
night hours specially for women-led startups. This is subject to prescribed precautions with respect to the
safety & security of women employees

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 17

 KERALA

Startup Policy
Kerala has a well-defined startup policy with clear guidelines on the definition and registration process for startups.
The policy is sector agnostic. Under its startup policy, the state has set-up the Kerala State Innovation Council
(KSInC) to devise innovative, efficient, sustainable and cost-effective measures for the economic development of
the state. The state has 550+ startups registered under its startup policy

550+ STARTUPS
The policy clearly outlines the incentives available for startups and processes to be followed to avail the following:

Rent subsidy Seed support Patent support Workshops and Innovation grants
mentoring

• Rent subsidy - As a reimbursement of a portion or rent paid as a subsidy for a limited period
• Seed support - Offered As loans with free collaterals and lesser interest rates when compared to other financial
institutions and banks
• Patent support- Offered By reimbursing the patent cost including consultation fee, subject to a limit of INR 2 lakh
per Indian patent awarded. For foreign patents awarded on a single subject matter, up to INR. 10 lakh would be
reimbursed
• Workshops and mentoring - The intensive mentoring & coaching programmes involve one to one mentor
connects, mentor clinics, chat with mentor, mentor speed recheck and on demand mentoring activities for
startups.
• Innovation grants- Idea Grant of upto INR 2 lakh will be disbursed to ideas/startups through 2 processes:

Startup Portal
The state has a comprehensive online
implementation system (startups.startupmission.
in) which allows startups to register themselves
and track applications and generate certificates

18 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

The state has maintained an interactive dashboard (month-to-date and year-to-date specific) highlighting the
following:

• NUMBER OF REGISTERED STARTUPS

• NUMBER OF SEED FUNDED STARTUPS
• NUMBER OF VENTURE FUNDED STARTUPS
• NUMBER OF INCUBATORS SUPPORTED
• NUMBER OF PURCHASE ORDERS AWARDED
The startup portal has a comprehensive
mechanism for online receipt and resolution of
queries and complaints. The portal also has a
detailed list of incubators and mentors.

Intellectual Property Support

IP support is offered as per an order from November 2018, by the Electronics and Information Technology Department.
The following guidelines apply for patent support:
• Support is provided as reimbursement of costs incurred for filing, prosecution and award of the patent
• Support is limited to INR 2 lakh for national patents & INR 10 lakh for international patents
Partnerships
The state has established tie-ups with various technology solution providers such as Google Cloud, Amazon Web
Services, Cleartax, Razorpay, Digital Ocean etc. As a result of these tie-ups, the startups registered under KSUM
can avail the services of technology companies at subsidised rates. Further, the state has also partnered with the
following national/ international agencies for developing solutions in a host of areas.

University of Illinois Airbus

Kerala Startup Mission (KSUM) and University of Illinois The state has signed a MoU with Airbus BizLabs
at Chicago have entered into a Memorandum of (a global aerospace accelerator, part of the
Understanding (MoU) to enable startups in Kerala to Airbus group) to set-up an incubation center in
access infrastructure and obtain mentorship. This Thiruvananthapuram. The accelerator will also
will be the country’s first incubator for developing provide mentoring support to startups through
digital products for cancer diagnostics, prevention workshops and discussions with experts from
and care aerospace and defense sectors

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 19

 Center National d’Etudes Spatiales (CNES)
Future Group
KSUM has entered into an agreement with the
The Kerala Startup Mission has tied up with the
space agency of France, Center National d’Etudes
Future Group where KSUM will serve as a market
Spatiales (CNES). The agreement will enable
access platform for the group allowing them to
startups and small and medium companies
promote their business at events supported by
operating within the Space Technology Application
KSUM. In return for this support, the Future Group
Development Ecosystem (STADE) in Kerala to get
will provide mentorship and technology support
market access to potential customers and investors
to startups registered with KSUM
in France. The agreement is a part of an initiative
launched by CNES called ‘Connect by CNES’ to
support the development of innovative products
and services using space technology and solutions

OPPO
KSUM has signed an MoU with OPPO. This
collaboration will provide select startups access
to an incubation programme launched by OPPO
which aims to provide startups with technical
Unity Technologies and business expertise. The MoU also agrees to
KSUM has partnered with Unity Technologies to host the selected startups at OPPO’s Research
launch a Center of Excellence for augmented and Development Centers for training and
reality and gaming. The center will provide different workshops. Furthermore, the collaboration aims to
levels of training on developer tools for augmented create synergies in areas of artificial intelligence,
reality to students and professionals in the state camera and image processing, gaming, payment
gateways, system performance etc.

Wadhwani Foundation
Wadhwani foundation signed an MoU with KSUM for supporting startups in the state and creating a
mutually rewarding ecosystem for all parties with a special focus on acceleration programmes for startups,
entrepreneurial education and development of women-led startups.

20 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

The state has a mechanism in place to connect startups with mentors. The details of the mentors are accessible
through the state’s startup portal. Through the portal, mentors can register themselves and subsequently
communicate with startups and offer their guidance and support. The state also maintains a list of startups that
have successfully connected with mentors. The state has connected 250+ startups with mentors in 2019-20

Women Entrepreneurship
As part of the Youth Entrepreneurship Development Programme, the state has introduced the following
incentives and benefits for women entrepreneurs
• Pre-incubation support is provided to startups led by women entrepreneurs and includes incubation,
mentorship and technical support
• The state also provides 100% reimbursement for the following:
- Product showcasing costs
- Travel costs
- Marketing support costs (up to INR 5 Lakh per startup per year and valid for two years)
• The incentive also extends moratorium period of seed funds provided by the Kerala Startup Mission from
one year to two years

Support from other state departments

The startup ecosystem in Kerala receives strong institutional support from various government departments in the
form of hackathons and financial incentives.

Department of Electronics and Information Technology Kerala Police Department

As per orders released by the Electronics and The Kerala Police Department along with
Information Technology Department, government the Kerala Startup Mission invited proposals
from selected startups for establishing the
departments, Public Sector Undertakings, autonomous
Police Innovation Center. A total of 12 startups
bodies, boards and local self-government institutions
presented their ideas to the Departmental
are permitted to select startups registered in Kerala for Innovation Zones
implementation of their IT projects costing between INR
20 lakh to INR 100 lakh
Departmental Innovation Zones
• KSUM has set-up innovation zones in
Kerala State Disaster Management Authority partnership with Kerala State Electricity
Board (KSEB) and Kerala Water Authority
The State Disaster Management Authority with the where innovators are given an opportunity to
support of Kerala Startup Mission and IBM hosted a demonstrate their products and services
two-day hackathon called ‘Call for Code Kerala’ which
focused on disaster management. The theme of the • Under KSEB – Energy Innovation Zone, nine
projects were funded with an innovation
hackathon, which witnessed participation of more than
grant of INR 54 lakh
25 startups, was to find an innovative solution for solving
crisis that arise during the time of floods or other natural • Similarly, KSUM partnered with Kerala Water
calamities Authority Innovation Zone for funding the
man-hole cleaning robot project with an
innovation grant of INR 27 lakh

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 21

 Kerala Finance Corporation Kerala State Industries Development Corporation
The Kerala Finance Corporation aims to provide The Kerala State Industries Development
handholding and mentoring support to 100 Corporation has established a seed funding
startups. The scheme is meant to encourage new scheme under which a maximum of INR 25 Lakh will
and innovative startups that have the potential to be provided to startups with innovative products.
contribute significantly to employment generation The assistance is sanctioned as a soft loan for a
in the state. It also provides working capital funding period of one year, post which the company shall
support for startups younger than seven years and either convert the loan to equity or repay with
whose turnover has never exceeded INR 25 crore in applicable interest. Till now, more than INR 15 crore
any financial year. has been sanctioned to 72 innovative startups
operating across healthcare, agriculture, fintech,
robotics etc.

22 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 MAHARASHTRA

Startup Policy
The state’s startup policy is comprehensive and spells out
the definition of a startup. The policy provides benefits
and incentives across sectors, with special emphasis on
the startups in the social sector which include, however
not restricted to education, skill development, health,
clean energy, water sanitation and conservation, waste
management, agriculture, food security and financial
inclusion.
The policy aims to reduce long drawn processes by easing the regulatory regime , thereby enabling startups to
minimise the compliance cost. The initiatives are in the form of reimbursement for stamp duty and registration fee,
support in quality testing and patent filing and tax holidays in lieu of GST paid.

Dedicated Startup Team

The state has a dedicated nodal agency named ‘Maharashtra State Innovation Society’ (MSInS) that
intends to foster innovation-driven entrepreneurial ecosystem in the state. MSInS is the governing council for
implementation of the policy. The society provides a platform to entrepreneurs, researchers, academics and
fosters a culture of innovation with the following objectives:
• To prepare the innovation roadmap of the state
• To provide an innovation promotion platform to academics, entrepreneurs, and researchers as well as
enabling the government from drawing upon national and international experiences to foster a culture of
innovation in the state
• The society would promote a network of world-class innovation hubs and grand challenges for the state
• The society would act as an umbrella advisory body to boost innovation driven performance and efficiency
in every sector
• To create a smart ecosystem to boost and nurture innovation

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 23

Startup Portal
The state has a dedicated online portal (msins.in) for startups. The portal has a user-friendly registration process
and is also equipped with an online resolution for queries. The online system has a dashboard detailing the number
of registered startups, seed funded startups, venture funded startups, incubators supported, number of incubates
and number of purchase orders awarded. The state also has a call center facility for all query resolutions, the
startups can reach out by mail and call center number
Partnerships
The state government has partnered with both institutions and corporates for assistance of professional services,
mentorships, lab equipment, knowledge exchange, technology transfer and market linkages.

Intellectual Property Support

The startup policy holds readiness for IPRs and provides both financial and technical assistance to startups
in filing of patents and trademarks, thereby illustrating the state’s competitiveness in strengthening their IP
framework.−
• The policy entails rebate of 80% in patent filing, up to INR 2 lakh for Indian patents and up to INR 10 lakh for
international patents to strengthen the innovative output of startups
• The state has issued guidelines with clear directions to state’s startups to avail IPR benefits under the policy
• In addition, Rajiv Gandhi National Institute of Intellectual Property Management has been established at
Nagpur that conducts IP training, awareness, management and research to improve the performance of
startups and increase investments in IPR and technology development.

Women Entrepreneurship
The state provides incentives to women entrepreneurs under its detailed Fintech Policy 2018 and promotes
fintech startups with women as entrepreneurs. The state has taken profound initiatives and earmarked a
certain portion of the total funds to benefit women startups in the state.
• An Incentive fund of INR 10 crore has been created to encourage such women-led fintech startups wherein
women are encouraged to be the founders of startups and can avail the preferential funds from the state.
• The state has provided seed funding support to unique women-led startups wherein approximately 500
such beneficiaries have benefitted.

24 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

Support from other state departments
The government provides support to startups through sustainable programmes, hackathons, incubation, seed
funding, public procurement, etc. The provision of support is in addition to the aid provided by the nodal department
of the state. The key departments of the state that have immensely supported and made endeavors in the state’s
projects/ policies are:
• Department of Agriculture leading the State of Maharashtra Agri Business and Rural Transformation
• IT Department leading the AI Innovation Challenge and the FinTech Policy 2018
• Mumbai Metropolitan Regional Development Authority (MMRDA) leading Station Access and Mobility programme
(STAMP)
• Department of Industry, Energy and Labour through formulation of the Maharashtra Industrial Policy 2019
The state has prominently enacted initiatives towards the state’s startups with ancillary support of key departments
wherein different sectors are encouraged to implement the concept of startups and gain maximum support
towards establishment, thereby leading to the overall state’s economic growth.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 25

 ODISHA

Startup Policy
The state has a robust startup policy
which covers all the aspects of the startup
ecosystem. It has clear guidelines on the
definition of startups, their registration
process and the incentives available for
startups. The policy was released in 2016
and was last amended in 2018. The startup
policy is sector agnostic.

The state currently recognises 450+

startups under the Startup Odisha initiative

450+ STARTUPS

Dedicated Startup Team

The state has set-up a startup cell as part of the Institute of Entrepreneurship Development (IED) under the
MSME Department which has a dedicated team of eight members to provide support to startups. The key
activities performed by the team are:
• Provide full facilitation, mentorship, guidance and advisory to startups
• Coordinate communication regarding the Startup Odisha initiative with all relevant stakeholders
• Identify and invite partners to plan and execute awareness activities and events to promote
entrepreneurship, innovation and startup culture within the state
• Update, manage and increase usage of the Startup Odisha portal
• Enable participation of startups in national and international events

26 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 Startup Portal
The state has a highly interactive startup
portal (startupodisha.gov.in). The startups
can submit their registration applications
and documents online and track the status
of the applications on a real time basis.
The portal has a robust query resolution
mechanism which can be accessed via
email and phone. All helpline numbers are
listed on the website.

The details of incubators and mentors

registered on the portal are displayed in
the public domain.
The details regarding policy implementation are displayed on the dashboard of the startup portal. The dashboard
reports both Month to Date (MTD) and Year to Date (YTD) figures.
Intellectual Property Support
The state provides Intellectual Property support under Industrial Policy Resolution 2015 in the form of 100%
reimbursement of registration cost which could be up to a maximum of INR 10 lakh. The state’s definition of IP
includes industrial design, trademarks, geographical indications and integrated circuit layout designs registrable
under the Semiconductor Integrated Circuit Layout Designs Act 2000.

The following entities are eligible for IP support:

• New Industrial Units
• Existing industrial units in MSME taking up
expansion/ modernisation/diversification.
• Migrated industrial unit treated as new
industrial unit.
• Rehabilitated sick industrial unit treated at par The eligible costs of assistance shall include the following:
with new industrial unit and duly recommended • Cost of application form, processing charges, and all
by State Level Inter Institutional Committee. other costs/charges/fees.
• Industrial unit seized under Section 29 of the • Reasonable expenditure incurred on documentation
State Financial Corporation Act and thereafter for the purpose of registration of patent/IP including
sold to a new entrepreneur on sale of assets fees paid to the consultants as consultancy fees and
basis and treated as new industrial unit for the cost of work of preparation, reprography of artwork,
purpose of intellectual property rights. industrial design.
• The entrepreneur should have submitted his/ • If any entity secures registration of more than one
her claim for IP support within one year from patent, the assistance shall be available for each of the
the date of obtaining patent registration. entities

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 27

 Partnerships
The state has established cohesive partnerships with educational institutions and business entities to foster
growth of the startup ecosystem. As per their startup policy, the state has an objective to create a “Three – I” (3i)
platform where institutions, incubators and industry shall collaborate through an e-platform which will function
as a “Virtual Incubator” for startups. The platform shall also provide access to government empaneled service
providers in areas such as law, finance, accountancy, marketing
• The state has formed partnerships with various international organisations, such as, The IndUS Entrepreneurs
(TiE) Silicon Valley and Facebook
• The state has tie-ups with various educational institutions such as NIT Rourkela, IIT Bhubaneshwar, National
Institute of Fashion Technology

Women Entrepreneurship
• The state provides strong support to startups where women have more than 50% equity.
• The support is in the form of monthly allowance of INR 22,000
• The state also offers product development/ marketing assistance of up to INR 16 lakh to women entrepreneurs
for introducing innovative products to the market
• The state has advised incubators to reserve at least one third of the subsidised incubation space (5000
square feet) for women-led startups

28 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 RAJASTHAN

Startup Policy
The Rajasthan Startup Policy, 2015 is publicly available
on the state’s startup portal and has clear guidelines on
the registration process for startups and the benefits and
incentives (both fiscal and non-fiscal) are available for
startups, incubators, nodal institutions, and educational
institutes. The policy is sector agnostic. The policy clearly
states the definition of a startup as an entity that develops
business model based on innovation and enables startups
to achieve scalable commercial success.

Dedicated Startup Team

Department of Information Technology & Communication is the nodal department. In November 2019, the Deputy
Director and Programmer from Department of information Technology & Communication, was appointed as the
nodal officer for startups programme, iStartup, The state has set-up a Startup Cell which comprises of a dedicated
team that provides all necessary assistance to the startups

Startup Portal
The state has a dedicated online portal (sso.rajasthan. gov.in/
signin) for startups to register and use their credentials to avail
various policy benefits and incentives on a separate portal
(istart.rajasthan.gov.in). Startups are able to register, obtain
registration certificates, track application status and generate
online receipts on the portal.
The registration process is straightforward as startups get required access from a single portal called iStart.
Receipt and resolution of queries are facilitated online:
• The portal has a robust query resolution mechanism which can be accessed via e-mail and phone
• All the helpline numbers are listed on the website. All queries received on the dedicated email (helpdesk.
[email protected]) are responded within 48 hours
• The details of incubators and any mentor registered with the portal is displayed in the public domain

Mentorship Support
In order to provide access to business experts and successful entrepreneurs, the state has built a strong mechanism
to connect startups to mentors on the state portal to provide business and technical mentorship to startups or
entrepreneurs on the state portal.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 29

Intellectual Property Support
The state has a strong system in place to provide intellectual property assistance to startups by providing subsidies
for filing patents/ trademarks. IP protection is offered to all entrepreneurs developing software and animation through
legal mechanism. The state has established an IP team to support startups which also conducts IP awareness
workshops and provides reimbursement up to INR 3 lakh per patent awarded to an entity/ company.
Partnerships
The state has formed partnerships with various academic institutes such as Birla Institute of Technology and Science
(BITS Pilani), Amity University Rajasthan, Jaipur Engineering College & Research Center, Malaviya National Institute of
Technology Jaipur, MLSU Udaipur, and Mody University, Lakshmangarh-Sikar.

ACADEMIC PARTNERS

Axis Bank, Ankur Capital Fund, HDFC Bank, Applyifi, Gilda and Let’s Venture are some of the investors in partnership
with the state. The state has formed tie-ups with various corporate partners such as Amazon web services, OYO
rooms, The Indus enterprise, Inc42, Yourstory, Google cloud, SV.CO, 100 Open Startups Udaipur Times.

CORPORATE PARTNERS

INVESTING PARTNERS

30 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

Women Entrepreneurship
Women entrepreneurs are provided specific incentives by the state to establish women-led startups. The state has
taken initiatives to foster women entrepreneurship through various funding support programmes. The key initiatives
are encapsulated below:

Hers&Now - Startup Oasis, a state funded programme,

Bhamashah Techno Fund – The state launched in collaboration with Deutsche Gesellschaft für
the ‘Bhamashah Techno Fund’ of INR 500 crores, Internationale Zusammenarbeit (GIZ) has established
out of which INR 100 crores have been specifically a unique programme which aims to facilitate women
earmarked for women entrepreneurs. entrepreneurship through dedicated incubation and
acceleration programmes.

Micro, Small and Medium Enterprises (MSME) Policy

2015 – The state policy has made a provision for
Banasthali Vidyapith Incubation Centre has been
reimbursement of service processing charges for
established with the vision of empowering women.
credit facilities up to INR 50,000 for women.
The incubation center provides women-led startups
access to world-class labs, modern equipment,
State Government’s National Knowledge Tours - The world class mentor & industry networks, funding
state had selected 30 student entrepreneurs for a opportunities and state of the art incubation facilities.
tour of entrepreneurial ecosystems of Delhi, Mumbai,
Bengaluru and Hyderabad. 40% of the participants WOMENPreneur – This is an eleven-month incubation
were women and have worked on building their idea programme that seeks to nurture aspiring women
into prototype products and gained opportunities entrepreneurs at all stages of the startup cycle.
to pitch their ideas to prospective customers and
investors in the national eco-system. WE Sprint - Women Entrepreneur Sprint is an
accelerator programme for promoting women
startups who are looking for capital, mentoring and
structural resources to scale up. Startups are provided
Mentoring at Incubators – iStart Rajasthan provides
support for developing minimum viable product
mentoring support to women entrepreneurs across
(MVP), designing marketing strategies, prospective
its Techno Hub and iStart Nest incubators
scale-up plans and getting funding support from the
best mentors in the industry.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 31

Support from other state departments
The state has been supported by other departments of the state government to foster the startup ecosystem and
take it to an elevated level. The other departments which provide support to the startups in the state are:
Department of Tourism
The state tourism policy offers tax subsidies, investment subsidies and other incentives for startups. iStart Rajasthan
was allotted a separate booth at Great India Travel Bazaar event to connect with the stakeholders in Tourism sector
Rajasthan State Agriculture Marketing Board
The department held a round table conference to understand issues faced by startups in agriculture and discuss
various mechanisms through which the government could support agri-tech startups
Department of Industries
The department has organised the Rajasthan Digitech Summit 2019. In the event, industry leaders, government
officials and investors met with innovative startups to extend their support and discuss about possible business
partnerships. The department also passed an ordinance to allow all MSME including startups to start business
without any prior approval or inspection for the period of 3 years.
Centre For Electronic Governance
The department has entered into a MoU with Elation Edutech, an iStart Rajasthan startup, working on enabling
“Learning by Doing” and fostering creativity, learning and imagination amongst students.
Urban Development and Housing Department
Municipal Council, Sikar is providing institutional support to WeVOIS Labs Private Limited, a Jaipur based startup, for
collection of household waste from the region under the municipal limits of the council
Multi-Department Event
Department of information Technology & Communication along with seven other departments organised
an innovation festival Rajasthan Innovation Vision 2019 (Rajiv 2019) from 19th August - 21st August 2019 in Jaipur.
The objective of the event was to offer the startups and young entrepreneurs’ access to initiatives of other state
government departments in the state and to provide them with an opportunity to collaborate with the respective
departments.
Department of Environment
The department has organised Greena-Thon, a green technology themed Hackathon. It was a 24-hour event and
aimed at offering young entrepreneurs a platform to showcase their ingenious ideas related to sustainable energy
as well as environmental issues. Krimanshi Technologies Private Limited developed a sustainable, unconventional
and cost-effective solution to feed the enormous cattle population of the country. The startup was awarded a work
order of INR 10 Lakh by the Rajasthan State Pollution Control Board.

32 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

04: S
 tatewise details on best practices
from previous year

ANDHRA PRADESH

Online Implementation System

The state has established an interactive portal for
startups (apinnovationsociety.com). The portal BIHAR
allows startups to submit their applications for
registration. After a startup is registered successfully,
it is issued a registration certificate which can be
downloaded from the portal

The online implementation system includes a detailed list of incubators, mentors, angel lists, details on
upcoming events and user manuals. The portal has a provision of a dedicated helpdesk which can be reached
via email and phone.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 33

The state has developed an online dashboard on the website showing the number of startups registered,
several startups accelerated, bootcamps conducted, incubators supported, several purchase orders awarded,
and other key performance indicators. The dashboard monitors the progress of all programmes and results
achieved against defined targets

34 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 BIHAR

Nodal Agency
As per the Bihar Startup Policy 2017, Bihar Startup
Fund Trust (BSFT) is the nodal agency for the
implementation of the Startup Policy in the state.
Further, Govt. of Bihar has issued a Government
Order, dated 25 April 2018 in which it has notified the
Department of Industries as the nodal department
and the Principal Secretary of the Department of
Industries as the nodal person for the implementation
of the policy in the State. The details are available on
the Bihar Startup portal.

Online Implementation System

• The state’s startup portal is startup.bihar.gov.in. It is a highly interactive platform created to initiate
seamless registration of startups with the Government of Bihar.
• The portal is comprehensive as it allows online filing of the application, tracking of application status, and
issuance of the registration certificate. It has a system to allow interaction through a query resolution
system and displays a call center number for call based query resolution.
• The list of incubators and mentors are available on the portal. The portal displays a dynamic dashboard
with updates on the number of startups registered, seed-funded/ venture-funded startups, incubators,
and incubatees and purchase orders awarded
• The dashboard is both Month to Date (MTD) and Year to Date (YTD) specific.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 35

Women Entrepreneurship
Women entrepreneurs are eligible for all benefits under the Bihar Startup Policy, 2017. In the case of fiscal benefits,
an additional 5% incentive is given to the women enterprise. (Please refer section 10.7 of the Policy).Section 10.7.4 of
the Bihar Startup Policy also states that based on the requirement, the government shall relax the eligibility criteria
as stated for certifying startups belonging to SC/ ST/ women & differently-abled.

Support from other state departments

Bihar Taxi Aggregator Operational Directives, 2019 enables aggregators to seek a grant of license from the
government provided certain conditions are met wherein the State’s Startup ‘Rapido’ has initiated operations
to provide taxi services through two-wheeler segment of vehicles.

Further, the state’s nodal agency, the Department of Information Technology has supported startups by
providing seats in Incubation Centers, setting up of Angel Fund in the state for enhanced growth of startups

Department of Information Technology (IT), Government of Bihar has institutionalized a mechanism to “unlock
the innovation potential of Bihar” so that Bihar emerges as a preferred destination of Startups and businesses,
generating employment and resulting in economic growth. One such initiative is the Ideathon 2018 event, which
acted as a platform for the demonstration of innovative next-generation ideas & product, drawing participation
from the various group of stakeholders like Students, Startups, Technical institutions, Working Professionals and
most importantly by the Business Developers, Venture Capitalists, Angel Investors and other important players
from the entrepreneurial ecosystem.

The event helped in showcasing the technological

advancements and innovations of various ICT
products and will also bring in entrepreneurs and
business leaders on a common platform to showcase
the technological breakthroughs and innovations.
More than 1000 participants demonstrated their
ideas/products/services involving technologies
across 14 themes using 7 submissions types. More
details available on ideathonbihar.in

36 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

PILLAR

02
SIMPLIFIED
REGULATIONS

OVERVIEW 36

SNAPSHOT OF BEST PRACTICES & IMPACT 37

STATEWISE DETAILS ON BEST PRACTICES 41

STATEWISE DETAILS ON BEST PRACTICES

FROM PREVIOUS YEAR 50

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 37

01: Overview

List of featured states Ideal Practice

In order to promote startup ventures, state governments
JHARKHAND are working towards increasing ease of doing business in
their respective states. Since the startup ecosystems are
KARNATAKA sensitive to changes in the state economy, it becomes
imperative for the state governments to simplify regulations.
KERALA The pillar includes best practices adopted by states in order
to ease the regulation and compliance related concerns of
MADHYA PRADESH startups.

ODISHA A progressive approach towards bringing change in the

system includes creating a robust Business Compliance
TELANGANA Information System conducting regular consultation
sessions with industry stakeholders and creating single
UTTARAKHAND
window solutions on online portals. Since the startups are
often minimally informed about the regulatory nuances and
Featured states from
compliance procedures, it is imperative for the government
previous year to keep compliances simple.

State governments could emphasise upon having the mode

GUJARAT of instructions in a multi-lingual format making it easy for
the local startups as well as global investors to connect.
MAHARASHTRA

RAJASTHAN

38 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

02: Snapshot of Best Practices & Impact

01 02 03
JHARKHAND KARNATAKA KERALA

SYNOPSIS: The state government SYNOPSIS: The state government SYNOPSIS: The state government
has a strong mechanism in has a robust Business Compliance has established an Ease of Doing
place for identifying regulatory and Information System (BCIS) Business (EoDB) portal for startups
challenges faced by startups in place to guide entrepreneurs to obtain state level approvals
across various sectors. The in registering and operating a and clearances. The state’s online
startup. The state government has
state government has simplified startup portal has an interactive
laid out a process for drafting of
business mechanism for startups mechanism to invite and identify
policies for startups which would
with a single window portal for help in identifying issues through regulatory issues faced by
approvals and clearances. An stakeholder consultations. A startups in disruptive technology
online mechanism has been Tech Regulatory Committee is areas. As per this mechanism,
institutionalised in order to connect constituted with the Karnataka startups can raise a ticket for their
with disruptive technology Innovation & Technology Society regulatory issues and the state
startups and understand their (KITS). responds to the ticket through the
specific regulatory issues. same portal.

IMPACT: The state government IMPACT: The state online portal IMPACT: The state government
has an interactive business has a system in place wherein has introduced Kerala High
compliance mechanism which startups can participate in Achievers’ Startup (KHAS)
offers single-button options to the policy-making process fellowship scheme. The Electronics
directly apply for approvals, through the online consultation and Information Technology
demonstrates the procedures mechanism. The state Department of Kerala has taken
along with timelines for approvals. government has provisions in some major initiatives towards
Startups can access the online sector specific policies to promote establishing a favourable
single window system for availing startups. The key sectors include regulatory environment for
these services. manufacturing, biotechnology, startups such as establishing
electric vehicles (EV), energy super labs and offering self-
storage and animation & visual certification under selected
effects. laws. The state has disbursed a
total of INR 58.14 crore against
reimbursements.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 39

 04
MADHYA 05 06
PRADESH ODISHA TELANGANA

SYNOPSIS: The state government SYNOPSIS: The state has a SYNOPSIS: In order to promote
has strong mechanisms in mechanism in place to guide startup ventures with the
place for identifying regulatory startups with matters related to prime objective of creating
challenges faced by startups approvals and clearances. The employment opportunities,
across various sectors. The startup startup portal allows startups the state government has
online portal has a dedicated to apply for the necessary introduced multiple initiatives
section showcasing the online approvals and track the status of to simplify regulatory provisions.
mechanism implemented by their applications on a real time The initiatives include framing
state to invite & identify grievances basis. The state has an online an interactive online mechanism
faced by startups. portal which has an interactive for startup approvals and
mechanism in place called GO clearances. The business
SWIFT (Single Window Clearance compliance mechanism offers a
Portal). single button option to apply for
approvals along with details such
as timelines, processes and fees.

IMPACT: The business IMPACT: The state has carried IMPACT: “Emerging Technologies
compliance mechanism provides out some amendments in rules Wing” initiated by the state in the
exhaustive information, including and regulations to promote year 2017 is accountable to look
timelines, mode of application the growth of startups and to after the new/ disruptive startups/
(online/ offline) and validity of create a favourable regulatory regulatory issues encountered
approval for the prospective environment. The startups can by these startups. Some of the
applicable approvals. The state contribute towards making the amendments/ acts in supporting
MSME department has included rules and regulations flexible by the startup initiative are Innovation
startups along with existing MSMEs sharing their feedback through Policy 2016, Blockchain Policy 2019
for various benefits under existing the state’s startup portal. and the TS Drone Policy.
schemes. In addition to this, the
labour department has extended
exemptions & incentives for
startups.

40 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 07 08 09
UTTARAKHAND GUJARAT MAHARASHTRA

SYNOPSIS: The state has simplified SYNOPSIS: The state has SYNOPSIS: Maharashtra State
the business mechanism for introduced numerous Innovation Society (MSInS) intends
startups with a single window amendments, regulations and to foster an innovation-driven
portal for showcasing an online acts to support startups. These entrepreneurial ecosystem in
interactive mechanism for all state have especially been related the state. MSInS is the governing
approvals and clearances. The relaxations in the areas of council for implementation of
state startups can submit issues solvency and annual returns. the policy. The society provides
relating to regulations online Further, incentivising women a platform to entrepreneurs,
through the state’s startup portal entrepreneurship by offering researchers, academicians, and
and have access to amendments sustenance allowances. fosters a culture of innovation.
in Acts and regulations

IMPACT: For addressing IMPACT: Some of the key acts IMPACT: The society has around
regulation issues, a separate tab that have been added in the Self- 7000+ registered startups. 76 and
“Regulatory Issues” is created on Certification cum Consolidated 9 startups have been provided
the state’s portal. The state has Annual Return Scheme are: seed funding and venture funding
carried out multiple amendments support respectively.
in rules and regulations to support • Building and other Construction
growth of the startup ecosystem. Workers Welfare Cess Act,1996
• Building and other Construction
Workers (Regulation of
Employment and Conditions of
Service) Act 1996
• Payment of Wages Act 1936
• Maternity Benefit Act 1961

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 41

 10
RAJASTHAN

SYNOPSIS: The state has

introduced numerous
amendments to support startups
that relate to exemption from
regulatory approvals and
inspections for a period of 3
years. The rules also encourage
government departments to
procure services from startups
upto the value of INR 1 crore.

IMPACT: A lot of opportunities

have been created for startups
to introduce favourable changes
using disruptive technologies
especially in sectors such as
Aviation, Automobile, Pharma,
Renewable Energy, and
Healthcare.

42 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

03: Statewise details on best practices

JHARKHAND

Business Compliance and Information System

The state has simplified the business mechanism for startups with a single window portal for showcasing an online
interactive mechanism for all state approvals and clearances. This is an essential requirement for registering and
operating startups across various sectors. The URL of Single Window Portal https://advantage.jharkhand.gov.in/
SingleWindow/ is linked to the State Startup Portal

Some of the options offered by single window portal are:

Approvals Incentives Central inspections

Land bank Investor tracking Policy feedback

The state has set-up an online mechanism to connect with

startups which outlines understanding about regulatory
issues faced by them and enables experiential outcomes
to startups to effectively adhere with the state regulations.
A separate tab titled ’Regulatory issues’ is made available
on the state’s portal for the startups to have thorough
understanding of the upcoming regulatory barriers
and the process to follow the regulations with ease and
cognizance.
Invite or Identify Regulatory Issues
The state has a strong mechanism in place for identifying
regulatory challenges faced by startups in various sectors and has subsequently worked towards simplifying the
policies and regulations to promote the growth of startups. The state has proactively worked towards identifying
regulatory hurdles faced by startups, especially in disruptive sectors. The state has also institutionalised an online
mechanism to connect with disruptive startups and to incorporate sector friendly policy changes.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 43

 KARNATAKA

Business Compliance and Information System

The state has a robust Business Compliance and Information System (BCIS) in place to guide entrepreneurs in
registering and operating a startup. The state online portal has a system in place wherein startups can participate
in the policy-making process through the online consultation mechanism. Further, the state has provisions in sector
specific policies to promote startups. The key sectors include manufacturing, biotechnology, electric vehicles (EV),
energy storage and animation & visual effects.

Invite or Identify Regulatory Issues

In order to create a comprehensive policy for

In order to address regulatory issues, the state has laid out a
implementation on startups, the state encourages
process for drafting of policies for startups which would help
the startups to provide inputs in drafting the
in identifying issues through stakeholder consultations. The
policies with regulatory coherence and provide
process to draft a policy that has been defined by the state
their support in the structuring of such polices for
government is as follows:
a well-ordered execution.
• Technology Selection & Prioritisation: The Karnataka
Startups may avail the facility of approvals and
Innovation Authority and Startup Cell Department would
clearances required for registering and operating
identify technologies that it intends to prioritise on a yearly
a business through the online portal (https://
basis for support & promotion.
startup.karnataka.gov.in/resources/). This is in
• Consultations: The department intends to hold recurring the form of frequently asked questions (FAQs) on
consultations with industry associations, academia, the portal.
startups and other relevant stakeholders to identify and
draft regulations that should be introduced considering
long-term impact of specific technology/ business model.
• Technology specific frameworks: Post consultations,
review and feedback from various groups on the
prioritised technologies and corresponding regulations,
the department identifies the action required for every
specific technology or sub-technology.

The state has constituted a ‘Tech Regulatory Committee’ with the Karnataka Innovation & Technology Society (KITS)
as convener and representatives of other departments as members to look into and report granular aspects of
specific emerging technologies and their implications. This is done in order to review and re-orient the regulatory
framework and respond to the dynamics of the rapidly evolving tech scenarios.

44 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

Karnataka Electronics System Design and Karnataka Open Data Initiative (K-ODI)
Manufacturing Policy 2017-22 Government of Karnataka collects and
The policy is developed to provide the necessary impetus generates a wide variety of data and
to take advantage of the dormant capabilities across information. There is a wide adoption of
various electronic markets with the aim of making local e-governance solutions in virtually every
electronics system design and manufacturing sector department of the government. K-ODI is an
globally competitive. It is expected to give thrust to initiative to provide proactive and open access
3D printing, robotics, internet of things (IoT), big data, to the data generated through public funds by
artificial intelligence (AI), machine learning, stem cell departments/ organisations of government,
research among others. and to increase transparency, accountability,
citizen engagement, collaboration, good
Karnataka Biotechnology Policy 2017-22 governance, decision-making & innovation. In
the budget speech of FY 2019-20, INR 5 crore
The policy encourages R&D in emerging technology
was earmarked for the K-ODI project. The open
areas such as synthetic biology, diagnostics and
data platform contains the following modules:
management of rare diseases, anti- microbial resistance,
aqua-marine biotechnology, animal biotechnology, bio • Data Management System (DMS) to be
manufacturing, and development of affordable medical added on the homepage of the website
devices, to foster the growth of bio-economy. after approval process of data catalogue
of various organisations

Karnataka Electric Vehicle & Energy Storage Policy 2017 • Content Management System (CMS) at
the stage of open government data and
First of its kind Electric Vehicle policy was issued by the
performance of tasks and upgrades
state that aims to develop Bengaluru as the EV capital
of India. The key objective of the policy is to maintain the • Visitor Relationship Management (VRM)
lead share of Karnataka as a preferred destination for to codify the citizens’ response to dense
attracting investments in the manufacturing of electric aggregation
vehicles. Further, the policy aims to attract an investment • Community: Enabling citizens to
of INR 310 billion and create about 55,000 jobs in the state. communicate and provide suggestions
Karnataka has been a pioneer in developing policies
around electric vehicles and there exists ‘Electric Vehicle
and Energy Storage Policy- 2017, for a period of five years.
The initiative is in line with the government’s vision to
make the country an all-electric vehicle market by 2031.

Karnataka Animation, Visual Effects, Gaming and Comics Policy 2017-22

Government of Karnataka aims to foster Animation, Visual effects, Gaming and Comics (AVGC) industry to
build sustainability, scale, create a critical mass and support the development of creatives in the state. To
facilitate various objectives, a policy with a host of incentives and concessions shall be applicable for the
industry throughout the policy period.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 45

 KERALA

Business Compliance and Information System

The state has a comprehensive and interactive online mechanism which provides information on state approvals
and clearances required for registering and operating startups across various sectors in the state. The mechanism
is available on the Ease of Doing Business (EoDB) portal and the same has been linked with the state’s startup portal
for ease of access. The EoDB portal also features a list of department wise approvals and clearances along with
application procedure, documentation and timelines for grant of approvals.
Invite or Identify Regulatory Issues
The Electronics and Information Technology Department of Kerala has taken some major initiatives to establish a
favourable regulatory environment for startups:
• Through an order released in July 2019, the department established the Massachusetts Institute of Technology
Super Fab Lab with advanced fabrication and machining capabilities at the integrated startup complex in
Kalamassery
• The department introduced a self-certification scheme for startups through an order released in July 2018.
According to this scheme, startups can self-certify compliance with the following laws implemented by the state
government

The Building and Other The Inter State The Payment of

Construction Workers Act Migrant Workmen Act Gratuity Act

The Employees’ Provident

The Contract The Employees’ State
Funds and Miscellaneous
Labour Act Insurance Act
Provisions Act

Amendments in rules, regulation or acts for supporting Startups:

Through an order released in September 2018, the Electronics and Information Technology Department introduced
direct purchase of mobile applications, software products and services from startups up to a value of INR 20 lakh.
Through an order released in January 2019, the department introduced the Kerala High Achievers’ Startup (KHAS)
fellowship scheme with fellowships to be granted to top ten percentile of students from various national institutions
and deemed universities.

46 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 MADHYA PRADESH

Business Compliance and Information System

The state has an online portal with interactive mechanism to find information on all the state approvals and
clearances required for registering and operating startups across various sectors. The state’s Single Window
System portal showcases an online interactive mechanism for all state approvals and clearances required for
registering and operating startups across various sectors. This portal (msme.gov.in) also acts as a one-stop
shop for startups to comprehend the approvals and clearances required for starting a business, obtaining seed
funding or venture funding, guidelines for public procurement, partnerships, self-certifications, relevant rules
and regulations by the state government.
The portal has a dedicated section describing the online mechanism implemented by the state to invite &
identify grievances raised by startups. Under “Concerned Department” tab, startups have the option to file
complaints/ grievances related to various departments such as law & legislative affairs, public grievances
redressal etc. A two-way communication between startups and relevant government departments is aimed at
direct consultation and grievance redressal.

Invite or Identify Regulatory Issues

The state has a strong mechanism in place for identifying regulatory challenges faced by startups across various
sectors, and have subsequently worked towards simplifying policies and regulations to promote the growth of
startups. The state has also institutionalised an online mechanism to connect with disruptive startups and to
understand their specific regulatory issues.

Amendments in rules, regulation or acts for supporting Startups:

The MSME Department of the state has notified all the The Labour Department
other state departments to focus on startup services of the state has notified
related to disruptive technologies and offer benefits all field officers to
under the MP Incubation and Startup Policy 2016. ensure that incentives
The department has also notified that preference in and exemptions are
procurement and free of cost services be provided extended to Startups
to Startups under Madhya Pradesh Bhandar Kraya upto a duration of 5
Tatha Sewa Uparjan Niyam, 2015 years

Mukhyamantri Yuva Udhami Yojana (MMYUY) - Provisions have been made for financial support for the
registered startups. Rules/regulations under the scheme have assisted startups to avail loans. The scheme also
provides for additional benefits for women startups in the form of low interest rates.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 47

 ODISHA

Business Compliance and Information System

The state government has a mechanism in place to guide startups with all matters related to approvals and
clearances. The startup portal allows startups to apply for necessary approvals and status tracking of their
applications on a real time basis. The state has an online portal (investodisha.gov.in) which has an interactive
mechanism in place called GO SWIFT (Single Window Clearance Portal) for all approvals and clearances required
for registering and operating startups across various sectors.

Invite or Identify Regulatory Issues

The state has a robust mechanism in place to address the regulatory issues faced by startups. Issues relating
to regulations can be submitted online through the state’s startup portal (startupodisha.gov.in)
• Grievances are placed before a committee comprising of Director of Industries, Odisha Small Industries
Corporation (OSIC) and Directorate of Export Promotion and Marketing (DEPM). CEO, Institute of
Entrepreneurship Development (IED) acts as member convener
• Representative of the concerned department to which the grievance relates is invited as a special invitee
• The state has designated the CEO of IED as the main officer to liaise with the concerned government
departments for final resolution of the grievances in a time bound manner
• Alternatively, as part of its offline mechanism, the startups may approach the Additional Chief Secretary,
MSME Department or CEO, IED at Startup Secretariat to get their issues resolved

The state has carried out various amendments in rules and regulations to promote the growth of startups and
create a favourable regulatory environment

Amendments in rules, regulation or acts for supporting Startups:

• Odisha Youth Innovation Fund has been proposed in the Odisha State Youth Policy (OSYP) 2013 for promoting
innovative entrepreneurship among the young entrepreneurs and startups of the State
• In 2018, the state introduced a self-certification scheme for startups according to which startups can self-
certify compliance with the provisions of the following labour laws implemented by the state government
- The Building and Other Construction Workers Act
- The Inter State Migrant Workmen Act
- The Payment of Gratuity Act
- The Contract Labour Act

48 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

Biotechnology Policy 2018 Aerospace Defence Manufacturing Policy
2018
The Odisha Biotechnology Policy 2018 aims at prioritising
the thrust areas for basic as well as applied research and The main objective of the policy is to attract
technology development with industry-academia-social investments in Aerospace and Defence
interface. The policy provides fiscal & non fiscal incentives, Manufacturing sector and create a strong
marketing assistance for development of the sector. ancillary ecosystem of manufacturers,
suppliers and vendors through a focused
cluster-based approach.

Odisha State Film Policy 2016 The policy provides incentives and exemptions
in conjunction with any other applicable
The key objectives of this policy are to promote Odia films
existing policy of the state government and
and position Odisha as a destination for film shooting.
Government of India. Any Aerospace & Defence
manufacturing unit may choose to avail an
incentive either from this policy or from any
Renewable Energy (RE) Policy 2016 other policy of the state, but not both.
The Renewable Energy Policy 2016 aims to contribute
to long term energy security of the state as well as
ecological security by reduction in carbon emission
and create skilled & semi-skilled manpower resources
through promotion of technical and other related
training facilities. The policy facilitates development of
manufacturing units and Research & Development in
the RE sector.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 49

 TELANGANA

Business Compliance and Information System

The state government has undertaken multiple initiatives to simplify regulatory provisions in order to promote
startup ventures with the prime objective to create employment opportunities. The initiatives include an online
interactive mechanism for approvals and clearances.

Invite or Identify Regulatory Issues

The state has an interactive mechanism in place to
address the regulatory issues faced by startups.
“Emerging Technologies Wing” initiated by the state
in the year 2017 is accountable to look after the new/
disruptive startups and regulatory issues encountered
by these startups. www.it.telangana.gov.in/sectors/
emerging-technologies
The LinkedIn URL, as mentioned below, is the online
mechanism implemented by the state for redressal
of regulatory issues faced by new/disruptive
startups. This account is managed by the “Emerging
Technologies Wing of ITEC&C Department”. www.
linkedin.com/company/et-itec-gots/about/
Amendments in rules, regulation or acts for supporting Startups:

Innovation Policy 2016 – It was introduced to help Blockchain Policy 2019 – It was introduced to
the startups by creating an environment that is truly support startups and position Hyderabad as one of
conducive to innovation, to experimentation, to risk- the top ten blockchain cities in the world.
taking, and to entrepreneurship across all levels of
society.

Telangana Drone Policy - The state’s vision is to build a vibrant drone ecosystem accelerating the economic
growth in the state of Telangana. This policy is based on four main pillars
• Developing Talent Pool
• Supporting Infrastructure
• Promoting Research and Innovation
• Enabling Collaboration and Building Community

50 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 UTTARAKHAND

Business Compliance and Information System

The state has a robust mechanism in place to guide startups
with all matters related to approvals and clearances. The
portal allows startups to apply for necessary approvals and
track the status of their applications on a real time basis.
Invite or Identify Regulatory Issues
The state has simplified business mechanism for startups
through a single window portal (https://investuttarakhand.com), an online interactive mechanism for all state
approvals and clearances. The URL of single window portal is also linked to the state startup portal.
The state has a strong mechanism in place to address the regulatory issues faced by startups. The startups can
submit issues relating to regulations through the state’s startup portal. A separate tab “Regulatory Issues” is available
on the state’s portal.
Amendments in rules, regulation or acts for supporting Startups:
The state has carried out various amendments in rules and regulations to promote the growth of startups and
create a favourable regulatory environment.

THE MAJOR AMENDMENT AND POLICIES ARE:

Startup Uttarakhand Policy 2018: Captures provisions Uttarakhand Procurement (Amendment) Rules: Captures
to facilitate and nurture the growth of at least 500 new the existing rules and regulations for the purpose of
Startups in Uttarakhand arranging the material construction works, procurement
Purchase Preference Policy: This policy has been created of services and public private partnership for Government,
in order to prioritise the products and services provided Infrastructure and Service related requested. A few
by the micro and small scale industries in Government amendments were made to these rules via a notification
Procurement dated 12th July 2019 by Government of Uttarakhand

AMENDMENTS IN ACTS AND REGULATIONS:

• Self-Certification scheme for • Reforms undertaken by State • Reforms undertaken by Uttarakhand
startups Industrial Development Authority Environment Protection & Pollution
• Reforms undertaken by Department (SIDA) Control Board (UEPPCB)
of Stamps and Registration • Reforms undertaken by State • Reforms undertaken by Uttarakhand
• Reforms undertaken by Directorate Infrastructure and Industrial Power Corporation Ltd
of Health and Family Welfare Development Corporation of • Reforms by Uttarakhand Jal
Uttarakhand Ltd (SIIDCUL) Sansthan
• Reforms undertaken by Fire and
Emergency Services

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 51

04. S
 tatewise details on best practices
from previous year

GUJARAT

Amendments in rules, regulation or acts for supporting startups

There have been multiple rules, regulations, and acts introduced or amended by the state government to support
the growth of startups. Some of these amendments are:

Exemption to startups for producing ‘Solvency Certificate’ for obtaining Electrical Contractor Licence

Amendment in Self-Certification cum Consolidated Annual Return Scheme: The government has added the
following Acts in the scheme as well:
• Building and other Construction Workers Welfare Cess Act, 1996
• Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
• Payment of Wages Act, 1936
• Maternity Benefit Act, 1961

Incentives to women-led startups: Special incentives to women-led startups include 75% reimbursement for
organising the annual promotional event and additional monthly sustenance allowance

Regulations for startups in disruptive technologies: Gujarat Pollution Board has adopted an online application
disposal system by the name of eXtended Green Node (XGN) for speedy disposal of consent applications
received from industrial units. The time limit for disposal of applications has also been reduced from 30 days
to 21 days

52 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 MAHARASHTRA

Amendments in rules, regulation or acts for supporting startups

The state has a dedicated nodal agency named ‘Maharashtra State Innovation Society’ (MSInS) that intends
to foster an innovation-driven entrepreneurial ecosystem in the state. MSInS is the governing council for the
implementation of the policy. The society provides a platform to entrepreneurs, researchers, academics, and
fosters a culture of innovation with the following objectives:
• To prepare the innovation roadmap of the state
• To provide an innovation promotion platform to academics, entrepreneurs, and researchers as well as
enabling the government from drawing upon national and international experiences to foster a culture of
innovation in the state
• The platform would promote a network of world-class innovation hubs and grand challenges for the state
• The society would act as an umbrella advisory body to boost innovation-driven performance and efficiency
in every sector
• To create a smart ecosystem to boost and nurture innovation

Along with the nodal agency, the state has a robust team of officers to assist startups

Contact details of the nodal agency and officers along with the profiles of the dedicated team assigned for any
startup are made available on the startup portal (www.msins.com)

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 53

 RAJASTHAN

Amendments in rules, regulation or acts for supporting startups

The state has carried out various amendments in rules and regulations to promote the growth of startups and
create a favourable regulatory environment. The major amendments and bills are:

MSME ACT 2019 BHARTIYA SKILL DEVELOPMENT UNIVERSITY

(BSDU) ACT, 2017
A bill was passed to exempt entrepreneurs/ MSME
enterprises from certain prevailing regulatory approvals BSDU has been incorporated as a State Private
and inspections for specified 3 years. The objective of the University. It is the first university in the country
bill was to support startups in establishing their business offering only skills programmes. It offers Skill
and operational in the state for initial years. Certificate, Diploma, Advanced Diploma,
Bachelor of Vocation (B. Voc), Master of Vocation
(M. Voc), and Ph.D. in various skill areas such as
RAJASTHAN SPECIAL INVESTMENT REGION BILL, 2016 Artificial Intelligence (AI) & Machine Learning,
Renewable Energy, Automobile, Healthcare,
The introduction of this bill has created a lot of
etc. The Bhartiya Skill Development University
opportunities for startups to introduce favourable
Act promotes acquiring of skills with the use
changes using disruptive technologies especially in
of disruptive technologies, hence creating a
sectors such as Aviation, Automobile, Pharma, Renewable
platform for entrepreneurs to create jobs and
Energy, and Healthcare. Rajasthan is one of the biggest
students to become job-ready.
parts of the Delhi Mumbai Industrial Corridor (DMIC) –
covers almost 600 km of the DMIC area under the bill.

RAJASTHAN TRANSPARENCY PUBLIC PROCUREMENT ACT (RTPP) AMENDMENT, 2018

The amended enabled government departments to procure services from startups up to the value of INR 1 crore.
The procurement services may include the use of disruptive technologies for websites, mobile applications,
web-enabled applications, setting up delivery kiosks, content management, and social media management.
Relaxation has been provided in terms of technical qualifications related to experience and financial turnover.

54 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

PILLAR EASE OF

03 PUBLIC
PROCUREMENT

OVERVIEW 54

SNAPSHOT OF BEST PRACTICES & IMPACT 55

STATEWISE DETAILS ON BEST PRACTICES 58

STATEWISE DETAILS ON BEST PRACTICES

FROM PREVIOUS YEAR 64

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 55

01: Overview

List of featured states Ideal Practice

Under the initiative, individual state governments have
GUJARAT undertaken a host of measures that encourage government
departments to give preference to startups and provide
HARYANA a level playing field to startups during procurement of
products & services.
KARNATAKA
The ideal practices for public procurement aim at
KERALA introducing startup innovations to government/ PSU buyers,
creating jobs and offering early market acceptance for
MAHARASHTRA products and services of the startups.

ODISHA Depending upon the evolving startup ecosystem, the

respective state governments have relaxed procurement
Featured states from criteria and made mandatory procurement rules for state
government organisations and PSUs.
previous year
The state governments can create an advantageous
opportunity by easing procurement rules for startups in the
RAJASTHAN disruptive technologies sector. For example, in one of the
states, the state departments and government agencies
can directly procure services such as mobile application
development from startups without the need of a tender.

56 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

02: Snapshot of Best Practices & Impact

01 02 03
GUJARAT HARYANA KARNATAKA

SYNOPSIS: The state has SYNOPSIS: The state government SYNOPSIS: The government
made requisite relaxations of Haryana has taken proactive provides exemption to startups
for experience, turnover and initiatives to ease government from criteria of prior-experience,
submission of Earnest Money norms for public procurement. prior-turnover and submission
Deposit (EMD) in order to The state has made necessary of Earnest Money Deposit (EMD)
encourage startups to participate relaxations in terms of turnover to provide equal opportunity
in public procurement. The state and submission of Earnest to entrepreneurs in the state.
has a strong mechanism in Money Deposit (EMD) in order to The government has offered
place to address all grievances encourage startups to participate procurement relaxations through
of startups with respect to public in public procurement. The government bodies such as
procurement. Department of Industries and Karnataka State Electronics
Commerce has given purchase Development Corporation Limited
preference, tender fee & and Karnataka Biotechnology and
performance security exemptions Information Technology Services
to the startups.

IMPACT: The state has awarded IMPACT: The state government IMPACT: Under ‘Elevate 2019’,
work orders to 20+ startups in order of Haryana has successfully the Karnataka Innovation &
to encourage their participation awarded five different work orders Technology Society (KITS)
in public procurement. Some of amongst 3 unique startups. This awarded work orders to 60+
the startups which were awarded illustrates that the state is keen to startups for development & supply
work orders are Orion, Brook encourage the establishment of of device/ software amounting
and Blooms, Hubili, i create and startups by awarding them work to INR 49 lakh (exclusive of tax
Lutalica. orders. amount, approx. INR 80,000 each)
during the period May 2018 to
September 2019.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 57

 04 05 06
KERALA MAHARASHTRA ODISHA

SYNOPSIS: The state government SYNOPSIS: The state has made SYNOPSIS: The state government,
offers procurement incentives relaxations in terms of turnover through state departments and
through the state departments. and submission of Earnest PSUs has mandatorily made 20%
The Stores Purchase Department Money Deposit (EMD) in order to of the total procurement to be
has exempted startups from encourage startups to participate placed with startups. The state
meeting the criteria of prior in public procurement. The government has made necessary
experience, prior turnover and encouragement to the preferential relaxations in terms of experience,
submission of Earnest Money treatment for startups in public turnover and submission of
Deposit (EMD). The Electronics procurement is gauged by the Earnest Money Deposit (EMD) in
& Information Technology initiative of the state government order to encourage startups to
Department permitted public to give orders worth 10% of the participate in public procurement.
sector companies, autonomous total purchase value to startups
bodies, boards, corporations and on an experimental basis.
local government institutions to
select startups under KSUM.

IMPACT: The state has been IMPACT: Maharashtra State IMPACT: The government is
successful in awarding a total Innovation Society has awarded actively making procurement
of 25+ work orders to 15+ unique more than 30 purchase orders exemptions a part of upcoming
startups. The Legislative Assembly, to support the products and initiatives such as creation of
Kerala Police, Health department, services of the registered startups state level unified e-commerce
Kerala IT Mission have successfully in the state. platform in partnership with
been able to procure services for established e-commerce
mobile application development companies. The platform would
from the registered startups in the serve as a marketing platform for
state. registered startups.

58 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 07
RAJASTHAN

SYNOPSIS: The state has an online

mechanism to resolve grievances
called Rajasthan Sampark.
Further, the state has made
appropriate relaxations to boost
participation of startups in public
procurement such as relaxation
in Earnest Money Deposit (EMD)
submission.

IMPACT: For grievance redressal,

the state follows an escalation
matrix in which the grievance is
timely assigned to the concerned
officer. Department of Finance,
2018 released schedules offering
relaxations for procurement from
startups if the value of the service
is not more than INR 1 crore.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 59

03: Statewise details on best practices

GUJARAT

Relaxation in selection criteria

The state has made requisite relaxations
for experience, turnover and submission
of EMDs in order to encourage startups
to participate in public procurement. The
state through a resolution in April 2018 has
removed the criteria of “prior experience”,
‘’prior turnover” and “submission of EMD”.
The state also has a strong mechanism in
place to address all grievances of startups
with respect to public procurement.

Work Orders
The state has awarded work orders to 20+ startups in order to encourage their participation in public procurement.
Some of the startups that form part of this list are Orion, Brook and Blooms, Hubili, i create, Lutalica.
Grievance Redressal Mechanism
The state has developed a robust online mechanism for receiving grievances and provide resolutions on matters
related to public procurement. Startups can raise grievances on the state’s startup portal and communication of
resolution of the grievances is undertaken through the same portal.
For each grievance submitted, a timeline is specified for the resolution. The Commissioner of Industries and Coordinator
– Startup Cell Gujarat has been appointed as a dedicated officer for resolving grievances. As per the notification
regarding the timelines, Deputy/ Joint/ Additional Commissioner of Industries of Startup Cell shall respond within 10 days
from the date of application. If the grievance is not resolved within 10 days, it shall be auto escalated to the Nodal officer
for resolution in the next 10 days.

60 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 HARYANA

Relaxation in selection criteria

To allow startups to compete with
experienced entrepreneurs and
organisations under public procurement,
the state has provided a 100% relaxation
under ‘prior turnover’ criteria. This would
provide an equal opportunity to all
startups to scale up and participate
in public procurement along with the
experienced entrepreneurs/ companies
and would strengthen startup movement
in the state.
As a source of encouragement for
startups and to ensure financial viability
for early age startups, 100% relaxation under ‘submission of Earnest Money Deposit (EMD)’ has been provided by the
state.
The state has ensured that the startups are given preference in public procurement. This is evident as the Department
of Industries and Commerce has given purchase preference, tender fee and performance security exemptions to
the startups. Furthermore, the nodal department has also organised a Government e-Marketplace workshop for the
startups in association with its incubators, startup India and Government e-Marketplace officials.
Work Orders
The state government of Haryana has successfully awarded 5 different work orders amongst 3 unique companies.
This illustrates that the state is keen to encourage establishment of startups by awarding work orders.
Grievance Redressal Mechanism
A mechanism for resolving grievances of startups specifically related to public procurement is established by the
state government. A dedicated officer is also appointed in the state to assist startups in resolving their grievances
related to public procurement. In this context, online mechanism has been developed for receiving grievances and
communicating resolution.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 61

 KARNATAKA

Relaxation in selection criteria Grievance Redressal Mechanism

Karnataka State Electronics Development Corporation The State Government has a centralised
Limited online and offline grievance management
The state Government owned Karnataka State Electronics system that addresses issues raised by
Development Corporation Limited (KEONICS) has the following startups related to public procurement. To
provisions for startups in the state: make the system more effective, the state
has taken the following measures:
• Complete relaxation has been given to startups for the
criteria of ‘prior experience’ and ‘prior turnover’ • Assigned a dedicated officer for evaluation
and resolution of all such issues.
• Relaxation in submission of EMD for startups is also provided
by the state for enhanced participation. • The grievance management system is
placed by the state to communicate
Karnataka Biotechnology and Information Technology issues raised by startups. The state
Services discusses the concerns of startups
The state Government provides following relaxations/ related to government procurement with
preferences for all registered startups with the startup cell of designated departments or agencies
KBITS (Karnataka Biotechnology and Information Technology executing them.
Services) for public procurement of goods & services:
• The system is a centralised online/ offline
• 50% discount is made available on all non-refundable mechanism in KEONICS for startups to
royalty which has a validity for 2 years. submit their concerns pertaining to the
• A set target of 10% of the procurement by the state Government/ PSU procurement process.
Government is availed through startups to foster rapid
growth and to present useful pilot opportunities for startups

‘ELEVATE, 2019’ is a unique concept initiated by the Government of Karnataka to promote entrepreneurship
through innovation by declaring grants for startups. As part of the programme, the Government provides a
comprehensive entrepreneurship platform that includes idea validation, funding and space, among others to
attain relevant work orders.
• Under ‘ELEVATE, 2019’, the state Government has awarded a total of INR 49 lakh which is an open call to
startups in the state. Startup Cell analysed and nominated startups amongst the Elevate winners for product
offering/ value proposition with State Departments / PSU / Local bodies.
• Startups, selected by the Idea2PoC Evaluation Committee for awarding Work Orders and working with
Government Departments/ PSUs / Local Bodies, were provided a Work Order of up to INR 1 Lakh from Karnataka
Innovation and Technology Society (KITS) for supply of their product offering/ value proposition in addition to
the Elevate grant money.

62 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 KERALA

Relaxation in selection criteria

The state, through an order released
by the Stores Purchase Department in
September 2018, exempted startups from
meeting the criteria of prior experience,
prior turnover and submission of earnest
money deposit. The startups need to
register with the Purchase Department
to avail these benefits. Further, via an
order released in December 2018 by the
Electronics & Information Technology
Department, the state permitted Public
Sector Companies, autonomous bodies,
boards, corporations, local government
institutions to select startups registered under the Kerala Startup Mission for design, development and implementation
of their information technology projects ranging between INR 20 lakh to INR 100 lakh.
Grievance Redressal Mechanism
The state government has developed a robust online mechanism for receiving grievances and communicating
resolutions on matters related to public procurement. Startups can raise grievances on the state’s startup portal.
Communication of resolution of the grievances is undertaken through the same portal. As per government order
released in August 2019, the grievance raised by the startups are forwarded to the concerned Implementation
Officer. If the query is not satisfactorily resolved within five days, it is forwarded to the Chief Executive Officer (CEO)
of KSUM.
The state has been successful in awarding a total of 25+ work orders to 15+ unique startups.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 63

 MAHARASHTRA

Relaxation in selection criteria

The state has provided 100% exemption to startups in
the manufacturing sector from the need to have a prior
turnover. The state government provides relaxation
in case a startup participates in the bid for priority in
the purchase policy. The participant startup will be
given exemption from complying with the criteria of
annual turnover for 5 years. This will be from the date
of registration with Department for Promotion of Industry
and Internal Trade (DPIIT). Startups will be exempted
from payment of tender fee.
Submission of EMD is a big hurdle for startups and the
government has provided 100% exemption applicable as per the policy to ease the way forward for startups from
all public tenders. Thus, the startups in the state can participate in government tenders with no deterrent such as
‘submission of EMD’ criteria.
Workorders
The state gives preference in terms of providing orders for procurement to all registered startups in the state.
Preference is provided in price or in value of procured goods or services. It also states that, if the startups participate
in the tender for startup elements, purchase orders up to 10% of the total purchase value should be given on an
experimental basis and the total order should be divided into multitudinous startup elements. If such successful
startup components are to participate in the tender in the next year then they would be ordered to purchase 20%
of the total purchase price.
Grievance Redressal Mechanism
The state has developed a robust time bound online mechanism for receiving grievances and provide resolution
on matters related to public procurement. The CEO of the MSInS has been appointed as a dedicated officer for
resolving grievances.

64 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 ODISHA

Relaxation in selection criteria

The state has made necessary relaxations in terms of
experience, turnover and submission of earnest money
deposit to encourage participation of startups in public
procurement.
As per a notification released in March 2018, the MSME
Department in Odisha started exempting startups
registered under ‘Startup Odisha’ and ‘Startup India’ from
the prior experience and prior turnover criteria.
Additionally, participating startups are not required to
submit any earnest money deposit.
Furthermore, the MSME Department mandates that 20% of total procurement for any state department/ public
sector company in Odisha must be from a startup. As part of this initiative, the state has awarded 15 work orders to
10 unique startups in Odisha.
Grievance Redressal Mechanism

Startups can raise grievances related to public procurement on the state’s startup portal (https://
startupodisha.gov.in) and communication of resolution of the grievances is done through the same
portal. For each grievance submitted, a timeline is specified for the resolution

Such grievances are placed before a committee comprising of Director, Industries, Odisha as Chairman
and Odisha Small Industries Corporation (OSIC) and Directorate of Export Promotion and Marketing
(DEPM) as members and CEO, Institute of Entrepreneurship Development (IED) as member convenor

Representative of the concerned department to which the grievance relates is invited as a special
invitee to the committee

CEO, IED is declared as the nodal officer to liaise with the concerned government departments for final
resolution of the grievances in a time bound manner

Alternatively, as part of its redressal mechanism, the startups approach the Additional Chief Secretary,
MSME Department or CEO, IED at Startup Secretariat to get their issues resolved

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 65

04: S
 tatewise details on best practices
from previous year

RAJASTHAN

Complete Relaxation in Earnest Money Deposit

(EMD) Criteria
The state has completely relaxed the EMD criteria
for the startups in the state which would boost
participation of startups in the overall state business
ecosystem

Preference in Public Procurement

The startups in the state are offered relaxation for technical qualifications such as the number of years of
experience and past financial turnover of the startup. The relaxation is offered in case the subject matter of
procurement is listed in the schedule of the notification issued by the department of finance in 2018, and in case
the estimated value of procurement is not more than INR 1 crore at one

Robust Grievance Redressal Mechanism

The state has developed an online mechanism, called Rajasthan Sampark, for resolving the grievances pertaining
to public procurement in a time-bound manner. It follows an escalation matrix in which the grievance is timely
assigned to the concerned officer. The grievance redressal mechanism can be easily accessed through the
state’s startup portal.

66 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

PILLAR

04
INCUBATION
SUPPORT

OVERVIEW 66

SNAPSHOT OF BEST PRACTICES & IMPACT 67

STATEWISE DETAILS ON BEST PRACTICES 71

STATEWISE DETAILS ON BEST PRACTICES

FROM PREVIOUS YEAR 82

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 67

01: Overview

List of featured states Ideal Practice

Under this pillar, states have undertaken unique practices
GUJARAT to support incubation. This section describes some of the
ideal practices which could be adopted by states.
JHARKHAND
The states should consider creating a pre-defined funding
KARNATAKA for a 5-year period with ballpark figures to be disbursed
every year towards incubation support. The incubators
KERALA should offer all essential services such as internet, electricity,
meeting rooms, seating, etc. Further, they should have
ODISHA common facilities such as labs, libraries, computer systems,
subscriptions to databases available on rental basis etc.
TAMIL NADU
States could consider offering startups with subsidy up to
Featured states from 50% on seating and/ or a one-month free incubation which
previous year can be reimbursed through online bill filing.

Acceleration programmes could have a lasting impact

on startups if they run for 6-12 months offering sufficient
ANDHRA PRADESH
opportunity to be mentored and collaborated with. The
CHHATTISGARH programmes could be made more effective through
the pre-defined modular structure that defines KPIs to
HIMACHAL PRADESH be achieved by startups under each module. Further, the
programmes could be partnered with institutions and
TELANGANA industry for mentorship support

UTTAR PRADESH

68 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

02: Snapshot of Best Practices & Impact

01 02 03
GUJARAT JHARKHAND KARNATAKA

SYNOPSIS: The state government SYNOPSIS: The state follows a SYNOPSIS: The state government
has been proactive in providing unique hub-and-spoke (HAS) has created a promising
sufficient opportunity for model for developing the startup environment for startups by
startups to participate in the ecosystem by offering benefits offering incubation support in
entrepreneurship ecosystem. The to higher learning institutes, PPP mode. This has led to private
creation of such an environment private sector and academia. sector participation to nurture
has entailed the state taking The government has set-up startups and providing them a
measures ranging from incubators in the key cities set-up true essence of how businesses
sustenance allowance, capital incubators of the state nurturing are operated. In addition to
support, mentorship support and startups in a variety of sectors. providing subsidised incubation,
acceleration programmes. The the government provides startups
state government has covered with end to end support in terms
these provisions in four separate of mentorship, market access,
policies of the state policies funding assistance and industry
reinstating its importance. collaborations.

IMPACT: The state government IMPACT: The state has set- IMPACT: The government has
has supported 80+ incubators up a total of 6 incubators supported over 45 incubators
through capital and operational allocating more than 170 seats allocating more than 665 seats to
expenditures. Amongst them 30+ and supporting more than 40 more than 255 startups. Further,
incubators have allocated 2000+ startups. It has conducted one the state has conducted over
seats to startups. Further, the state acceleration programme. 100 acceleration programmes
government conducted over 70 and the centers of excellence
acceleration programmes. offer hand holding support for 12
months.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 69

 04 05 06
KERALA ODISHA TAMILNADU

SYNOPSIS: The state has an SYNOPSIS: The state has built an SYNOPSIS: The state aims to
ambitious vision of incubating attractive and catalytic system use funds allocated under
at least 10,000 technology- to build the startup ecosystem five departments (NITI Aayog,
based startups and developing by promoting participation DST, DBT, DEITY, MSME) of the
one million square feet of of institutions in setting up government for incubator
incubation space. Hence, it aims incubators. The nature of claiming development. It lays special
to foster Technology Business the benefit is performance emphasis on private sector and
Incubators (TBI). It has outlined based ensuring participation of academia participation in setting
fiscal incentives for infrastructure competitive incubators. Further, up incubators. It also envisions
development, operating it offers startups the benefit of allowing special provisions to
incubators and mentorship availing subsidised seating and startups such as longer hours of
support for startups. mentorship support to state access to incubators for startups.
approved startups.

IMPACT: The state has supported IMPACT: The government IMPACT: The state has supported
development of 6 incubators has supported the set-up setting up of 8 incubators with
through financial assistance. It has of 12 incubators offering a 7 seats allocated to startups.
allocated 1755 seats through 17 reimbursement of INR 1 lakh/ Among the incubators, seven
incubators and organised a total year for operational expenditure. are educational institutions in
of 44 acceleration programmes For 7 of the incubators, a total the state. The state has set-up
for startups. of 406 seats were allocated. 52 an Entrepreneurial and Business
acceleration programmes were Acceleration Centre (EBAC) to
conducted in the state. provide support to ideate and test
innovations.

70 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 07 08 09
ANDHRA CHHATTISGARH HIMACHAL
PRADESH PRADESH

SYNOPSIS: Andhra Pradesh, SYNOPSIS: The startup incubation SYNOPSIS: The state government
through its Centre of Excellence ecosystem in the state aims has taken sufficient steps to
(CoE) for IoT aims to foster the to focus on expanding and support incubators and to provide
growth of IoT ecosystem in India. developing startups by providing incubation support to startups.
Further, to support inbucation, the them with services such as co- The support offered by the state
state had proposed to establish working space, management, is in the form of a financial grant
pilot incubators on Public- mentorship, fund support, that can be leveraged by the
Private Partnership mode. The technological assistance or any incubators on behalf of the
pilot incubators would be set-up support involved for a business to state. The state government has
for five years and the startups grow. encouraged reputed universities/
would be eligible for a monthly institutes to establish incubators
assistance. in the state.

IMPACT: The state had allocated IMPACT: The state has partnered IMPACT: 100 seats have been
an amount of INR 23 crore towards with three incubators to nurture allocated under several
the functioning of planned the growth of startups. The incubators. An incubation fund
activities of the Andhra Pradesh incubator AIC@36INC has has been set-up in the state with
Innovation Society (APIS). The allocated 145 seats to startups an initial corpus of INR 5 crore. The
state has supported 70+ startups in the state. This incubator also state also provides a grant of INR
by providing them with subsidised acts as the nodal agency of the 30 lakh per year for 3 years for
incubation. 250+ seats have been Government of Chhattisgarh setting up incubators and other
allocated to startups under three for the overall entrepreneurial activities.
incubators. development in the state.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 71

 10 11
TELANGANA UTTAR
PRADESH

SYNOPSIS: The state has taken SYNOPSIS: The startup schools are
measures to set-up technology established in collaboration by the
focused and women focused state for student entrepreneurs
incubators. The support includes to kick-start their startup journey.
mentorship, corporate connects The state has created awareness
and networking, workshops and around the Internet of Things (IoT)
seminars and investor connects. wherein iBuild (iB) hubs startup
It has organised acceleration schools as Student Acceleration
programmes in partnership with Programme are designed for
the industry. intense learning of the students.

IMPACT: The state has built a IMPACT: The state has provided
70,000 sq. ft. building (T-Hub), funding and setting up of 13+
called ‘Catalyst’ that brings state-wide startup incubators.
together partnerships from Moreover, various incubators in
different verticals to help startups the state have provided seats to
shorten the sprint towards their around 169+beneficiaries.
goal. T-Hub has supported
around 550+ startups, conducted
850+ events and raised a funding
of $186+ Mn. It also has a pool of
115+ mentors guiding startups,
and 245+ international connects.

72 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

03: Statewise details on best practices

GUJARAT

Setting up of new and upgrading existing incubators

The state is strongly focused on initiating startup incubators as centers for developing entrepreneurial skills
amongst the youth. The state has strong mechanisms in place to assist in setting up of new incubators and
upgradation of existing incubators. The key policies to support the growth of incubators are:
• Startup and Innovation Policy 2015 by Industries & Mines Department
• IT & ITeS & Electronic Startups Policy 2016 by Department of Science & Technology
• Student Startup & Innovation Policy 2017 (SSIP) by Education Department
• Biotech Mission Policy 2016 under Gujarat State Biotechnology Mission (GSBTM)
• Furthermore, an incubator in Gujarat has the option of obtaining incentives either under the startup policy of
Industries and Mines Department or under the policy for IT and Electronics
• The support provided to incubators is in the form of financial grants and/ or reimbursements on capital
expenditure which can be utilised for development of incubation area and/or operational expenditure

Subsidised Incubation
Under the IT & ITeS & Electronic Startups Policy 2016, the state provides the following subsidies to incubators:
- One-time capital assistance at the rate of 50% of Gross Fixed Capital Investment (subject to a ceiling of INR
50 lakh), excluding cost of land, for setting up an incubator
- Mentoring assistance of INR 5 lakh per annum
- A matching grant of 25% of the funds mobilised by them from non-governmental sources, subject to a
ceiling of INR 1 crore per annum for meeting their operational expenses
- The state supports procurement of key softwares required for development and testing purpose at the
incubator associated with educational institutions or universities at the rate of 50% of software cost subject
to a ceiling of INR 1 crore

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 73

• Currently the state supports 80+ incubators through support in capital and operational expenditure. Out of these,
30+ incubators have allocated 2000+ seats specifically for startups.
• Under the Startup & Innovation Policy, subsidy is provided to eligible startups in the form of sustenance allowance
(seed funding). The subsidy may be utilised for paying the incubation fees (if any) to the nodal institute to avail
subsidised incubation.
• It has also been mandated that all the institutes/ universities receiving grants under the Student Startup and
Innovation Policy (SSIP) 2017 must provide “Free Incubation Support” to the startups/ students for at least three
months from the date of enrollment of startup/ student with the institute.

Acceleration Programmes
• The government has conducted various acceleration programmes in association with industry players through
organisations such as iCreate (International Centre for Entrepreneurship and Technology). Ahmedabad-
based iCreate is an autonomous technology business incubation centre that identifies and nurtures aspiring
entrepreneurs. The support provided to Startups under acceleration programmes by iCreate involves access to
iCreate labs, office space, mentors, market access as well as seed capital for projects incubated.
- iCreate aims to “solve different developmental needs of India”. The centre is working with entrepreneurs,
technology enthusiasts, and innovators in the Internet of Things (IoT), machine learning (ML), and artificial
intelligence (AI) sectors.
- Currently, iCreate is running iELT Accelerator programme, which is a two-and-a-half-week programme focused
on very early stage startups and innovators to quickly understand whether their innovation can become a
successful business. Selected participants would be guided through a series of steps that include intense
classroom sessions, real customer feedback and one to one mentoring. This will enable them to validate
whether their idea is feasible and improve their chance of success.

74 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 JHARKHAND

Setting up of new and upgrading existing incubators

The state has framed a Hub and Spoke (HAS) model for developing the startup ecosystem and incubation centers.
The state shall offer incentives for the institutions of higher learning, private sector and academia. The incubators
established with the help of such stakeholders would then act or peripheral incubation centers.
The state startup policy details incentives and provisions for the following:
• Central Incubation Lab (CIL)- for government aided entrepreneurial activities
• Incubation centers in higher educational institutions
• Private Incubators/ Accelerators
• Industry-Academia Incubation center
• Virtual Incubator Platform
The government has six incubators in cities such as Ranchi, Sindri, Deoghar and Dhanbad. The incubators have
been successful in supporting and guiding young students and entrepreneurs to pursue their startup ventures.
The incubators in the state have collectively supported more than 40 startups in the state. The startups belong to
sectors such as Information Technology, Food Processing, Renewable Energy, Agritech, Art & Craft, E-commerce,
Automobile, Environment and Waste Management.
The state conducted a workshop on business communication and training for entrepreneurs.
• To deal with the dynamic entrepreneurial ecosystem in the state, Atal Bihari Vajpayee
Innovation Lab (ABVIL) has partnered with the US Consulate General, Kolkata through
professional development courses.
• During the training, the participants learnt about topics such as networking, negotiating, business cycle, business
presentations, elevator pitches, and formal pitches. The programme focused on preparing the participants to
deliver an organised and well-polished business pitch in front of a live audience. Under this project, the specialist,
Mr. Dieter Bruhn, worked with groups of 20 entrepreneurs for one week.
The various incubators in the state are:

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 75

 KARNATAKA

Setting up of new and upgrading existing incubators

The state has devised a high-quality incubation support system to nurture the growth of startups. Subsidised
seats are offered by incubators under PPP mode. Hence, the quality of infrastructure and environment offered by
incubators under PPP mode maybe better than the purely public ones with the efficiency advantages that come
from using private sector skills.

THE STATE HAS 40+ INCUBATORS LISTED UNDER FOUR DIFFERENT CATEGORIES:

Incubators/ Common Incubators under

K-Tech K-Tech Technology
Instrumentation K-Tech New Age
Innovation Hubs Incubators
Facilities Innovation Network

• There are sanction letters authorised for the release of funds to the respective incubators.
• 665+ seats have been allocated for across all incubators in Karnataka for more than 255 startups. There is
an incubator-wise list for the seats allocated for each startup in Karnataka
• The startup policy under the section ‘Creating Incubation Infrastructure through PPP’ provides subsidised
seats for startups in PPP incubators and accelerators set-up in the state. It recommends charges of INR 3,000
per seat per month which is limited to five seats per incubatee.

The list of key incubators offering subsidised seats are showcased below:

Number of startups provided

Incubation Centre Subsidy offered
subsidised incubation
K-tech Innovation Hub, Startup 100+ Subsidised Incubation rate Of INR 4000
Warehouse (+GST) and INR 2000 (+GST) for women
entrepreneurs
K-tech Innovation Hub by Bangalore Bio- 45+ Subsidised incubation rate of INR 110 per
innovation Centre sq.ft. and NIL for women entrepreneurs
K-tech Innovation Hub, Mobile10x 20+ Subsidised incubation rate of INR 5000 per
seat

76 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 Acceleration Programmes
The government of Karnataka, in collaboration with
partners from the industry and academia has set-
up eight sector focused Centres of Excellences (CoEs)
that act as accelerators and one bio-accelerator
programme under BBC (Bangalore Bioinnovation
Centre), to handhold startups for a period of 12 months.
The services provided as part of the acceleration
programmes are:
• Mentorship
• Partnerships
• Funding Assistance
• Market Access
• Participation in Industry Programmes

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 77

 KERALA

Setting up of new and upgrading existing incubators

The state’s startup policy has the following goals and incentives envisioned to promote incubators in the state:

To attract INR 5,000

To incubate at least To develop one
crore as investments
10,000 technology million square feet of
into the incubation and
product startups incubation space
startup ecosystem

A government order by the state released in May 2018 mentions that the government proposes to give subsidised
infrastructure to startups to scale up in terms of built up space in government owned facilities.
The state is establishing ‘Kerala Technology Innovation Zone’, a global innovation incubator hub for many technology
sectors under an umbrella. The zone will create world class infrastructure facilities for multi sector technology
incubators to incubate their startups and to support home grown enterprises.
As per its startup policy, the state fosters the growth of Technology Business Incubators (TBIs). The policy also proposes
to set-up innovation-based incubators in all institutions of higher education in the state. Further, it proposes to set-
up an electronic platform that would function as a virtual incubator connecting all the stakeholders of the startup
ecosystem.
The startup policy extends support for setting up sector specific and sector agnostic incubators. Under the policy,
the state extends the following support to incubators:

CAPITAL ASSISTANCE FOR FURNISHING EXPENSE PROVIDED FURNISHING IS DONE IN A GOVERNMENT SPACE FOR

5
Operational assistance Promotional support Mentoring
for a maximum period which includes grants support
YEARS of five years and seed funds

The startup policy also proposes to set-up an Incubation Infrastructure Development Fund which will support the
development of physical incubation infrastructure through a Public Private Partnership model.
The state has allocated a total of 1,700+ seats to startups in the state across 17 different operational incubators.

THE STATE SUPPORTS A TOTAL OF 6 INCUBATORS THROUGH FINANCIAL ASSISTANCE FOR OPERATIONAL EXPENDITURE

• Maker Village, Ernakulam • Nasscom Startup Warehouse, Ernakulam

• Mobile 10X, Calicut • International Center for Free and Open Source Software, Ernakulam
• Krobs Bionest, Ernakulam • Mizone, Kannur

78 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

Acceleration Programmes
The state has initiated various acceleration programmes to provide startups with the opportunity to connect with
investors and obtain funding support:
• The K accelerator programme is a three-month programme designed to help startups obtain market validation
for products, meet with relevant customers and industry leaders, and connect with potential investors. The state
has collaborated with Zone Startups India to roll out this programme.
• Unity Technologies has established a Center of Excellence (CoE) to provide immersive technology solutions for
academics (school and university education), skill development, vocational training, and enterprise applications
for industries such as defense, tourism, retail, construction and engineering. The XR Accelerator programme is
a joint venture between Unity Technologies Center of Excellence and the Future Technologies lab of the Kerala
Startup Mission. The programme has been designed to support development in the field of augmented reality
and gaming.
• The Brinc Accelerator programme
is a three-month programme
focused on computer hardware
and internet of things. The
programme provides support to
mid stage startups that have a
working prototype in place and are
ready to move to design phase for
manufacturing.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 79

 ODISHA

Setting up of new and upgrading existing incubators

As per their startup policy, the state encourages incubators recognised either by the central or state government
and approved by state level implementation committee to support and mentor startups. Such incubators are
eligible for obtaining mentoring services from the state.

The state currently supports 12 incubators through the following initiatives:

• Approved incubators can avail performance capital grant of INR 5 lakh for each successful startup they
incubate and reimbursement benefit of INR 1 lakh per year for a period of three years (for free internet,
electricity, and mentoring service)
• The state also encourages its universities/educational institutions which are in existence for at least five years
and approved by state level implementation committee to support and mentor innovators
• Such approved institutions are eligible for a one-time capital grant of 50% of the capital cost (excluding the
cost of building) up to a maximum of INR 1 crore to set-up or scale up an incubation facility

Recognised startups may avail subsidy benefit to the extent of 50% of monthly rental of the incubation space
(subject to a maximum of INR 5000) for a period of maximum one year.
Performance capital grant of INR 5 lakh may be given to an approved incubator for its each successful startup
incubated at least for a minimum period of three
months.
In case a university recognised under the
Central/ State Act is able to raise funding for
development of its incubation infrastructure,
the Startup Council of Odisha may consider
providing a matching grant subject to an upper
limit of INR 5 Crore on a case-to-case basis. Such
grant from the government shall only be used
for development of incubation infrastructure
including purchase of equipment for the
incubation facility.
As a resultant of the above-mentioned initiatives,
three operational incubators in Odisha have
allocated 170+ seats to startups.

80 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

Acceleration Programmes
In order to promote the growth of startups, the state conducts acceleration programmes which have a major
impact on the development of the startup ecosystem. Some of these programmes are:
Udaan Accelerator programme for Fundraise: The objective of the programme is to make founders ready by
exposing them to the investor ecosystem in India. It further helps them in identifying the right product market fit for
their startups. The programme received participation from 5+ startups which included Tatvagyan Think Zone Private
Limited, Iserveu Technology Private Limited, Haripriya Agro Industries, Mere Edu Services Private Limited etc
IM2: Ignite the Momentum of Innovation to Market (IM2) Accelerator is a zealous 90 days programme that gives
startups access to mentorship, investors, market linkages and other support that helps them to scale up their
businesses. The programme received participation from 5+ startups which included Prakrika Technology Private
Limited, Azeedo, Nexyite, ML Green Projects Pvt Ltd, etc.

The IM2 programme is supported by the Department of Science and Technology, GoI and Startup Odisha
• The objective of the programme is to provide the startups with momentum to establish a strong position in the
market through idea validation, identification of business opportunities, identification of potential customers and
by building a scalable business model and Go-To-Market strategy
• The programme focuses on startups working in Medtech, Agritech, Internet of Things, Cleantech, Digital Health,
and Future Tech (AI/ ML & AR/ VR) space
• Climate Launchpad: Climate Launchpad (CLP) is a 3-month accelerator programme which includes an intensive
training programme by a European Union certified trainer, with an aim to introduce all modules to make the
green idea into a business pitch. The programme received participation from 10+ startups such as Mavericks,
EnLiGreen Innovations, EcoQuant, SunEmison, Envitek, etc.
• Acc-Start: This acceleration is conducted in association with INQ, Bangalore and CSL, Bangalore. The event is
focused on Odisha based startups that are at an early stage of development. The programme is a 4-week
intensive training on internet of things, augmented reality and preparing startups to raise funds. The programme
received participation from five startups

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 81

 TAMIL NADU

Setting up of new and upgrading existing incubators

The state, through its startup policy, assists in setting up of new incubators and aims to provide adequate resources
for acceleration of startups. Key action plans envisioned in the startup policy are mentioned below:
The state proposes to target Corporate Social Responsibility (CSR) funds to promote corporate and private
incubators. State departments and public sector companies would be encouraged to support incubators by using
their corporate social responsibility funds. These incubators shall also serve as an innovation sandbox to solve
problems faced by public sector companies.
• The state proposes to allocate land to entrepreneurs at nominal lease for a duration of 99 years to establish
‘Startup Parks’.
• The policy envisions the establishment of sector specific niche incubators.
• The policy also envisions that government funded incubators would be open for public access at least 16 hours
a day and seven days a week, except on national and state holidays.
• The state also proposes to set-up a fund called Tamil Nadu Startup Seed Grant Fund (TNSSGF) which would
provide up to a maximum of INR 50 lakh to academic incubators and private technology business incubators.
• The state proposes to establish a learning & development team at the TANSIM.
• The state proposes to encourage entrepreneurs by giving them access to relevant data/information to create
applications and technologies for the welfare of the public.
• The state proposes to develop technology business incubators under the brand ‘incubaTN.’
The state encourages industrial organisations and private commercial organisations to set-up incubators/
accelerators using funds allocated under schemes of Niti Aayog, Department of Science and Technology (DST),
Department of Biotechnology (DBT), Department of Electronics and Information Technology (DEITY) and the Ministry
of Micro, Small and Medium Enterprises (MSME), Government of India.

82 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

The state has extended support to seven educational institutions for the establishment of incubators. Details of the
same are as follows:

Veterinary incubation Agri-Business incubator at Anbil Horti-Business Incubator

foundation at Tamil Nadu Dharmalingam Agriculture at the Horticultural College
Veterinary and Animal Sciences College and Research Institute and Research Institute in
University in Chennai in Tiruchirappalli Periyakulam

Agroforestry Business Killikulam Agri-Business IOT incubation center

Incubation Center at the Forest Incubator at Agriculture at the Sri Krishna
College and Research Institute College and Research College of Technology
in Mettupalayam Institute in Coimbatore

Innovation and incubation research foundation at Annamalai

University in Chidambaram

The state has allocated seven seats across two state supported incubators.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 83

04: S
 tatewise details on best practices
from previous year

ANDHRA PRADESH

Subsidised Incubation
The state, in association with NASSCOM and the central government, has started the ‘Center of Excellence for the
Internet of Things’ (CoE for IoT) at the Visakhapatnam Sunrise Incubation Hub. The main objective of this programme
is to foster the growth of the IoT ecosystem in India. The state has supported 70+ startups by providing them with
subsidised incubation in the form of free co-working space and other incubation services. Various operational
incubators have also allotted seats to startups. As on date, 250+ seats have been allocated to startups under three
incubators.
The state government through an order released in February 2019 created the Andhra Pradesh Innovation Society
(APIS) with a vision to promote entrepreneurship in the state. Further, the state had allocated an amount of INR 23
crore towards the functioning of planned activities of the society.
The funds were allocated to the following activities:

International events like international innovation fair, startup product launches, keynotes, startup awards

Domestic national level events like investor pitches, demo days conducted in association with industry
bodies like NASSCOM, FICCI, Confederation of Indian Industry (CII), The Indus Entrepreneurs (TiE)

Infrastructure creation at Tirupati for startups at the Information Technology Business Center (ITBC)

Maintenance of innovation centers in Tirupati, Visakhapatnam, Kakinada, Vijayawada

84 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

Key measures envisioned by the state under the startup policy to support incubation are:
• The state has proposed to develop a fund to provide grants for constructing incubation infrastructure such as
Research and Development laboratories, office spaces, conference rooms, residential facilities. The state proposes
to partner with Indian and globally successful incubators to replicate successful funding and mentoring models
• The state intends to partner with accelerators by providing support and space to bring expertise in operating and
managing incubation centers
• The state proposes to establish pilot incubators on Public-Private Partnership mode. The pilot incubators would
be set-up for five years and would be eligible for monthly assistance of INR 12,500 for a maximum period of three
years
• The state has also set-up a centralised helpline to address grievances of startups. All the helpline numbers for the
same are published on the single desk portal

Strong support for acceleration programmes

• The state has actively supported acceleration programmes in association with industries and educational
institutions
• The Fortissimo Acceleration Programme, which is a joint venture between the state and Gastrotope Private
Limited, aims to develop the technology ecosystem of Agriculture and Food Processing sectors
• Startup Accelerator India was established at the Sunrise incubation facility in Visakhapatnam by the state in
association with Govin Capital Private Limited. The main objective of the programme is to offer training and
development support to entrepreneurs

Also, the state has established a business accelerator in Tirupati in association with FICCI & the IC2 Institute at
The University of Texas, Austin.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 85

 CHHATTISGARH

Set-up or support incubators in the State

The state has partnered with three incubators to nurture
the growth of startups. To assist state startups, the
incubators allocate seats to startups in Chhattisgarh. As
part of this initiative, an operational business incubator,
and accelerator, AIC@36INC supports startups to expand
and develop by providing them with services like co-
working space, management, mentorship, fund support,
technological assistance or any support involved for a
business to grow. The incubator has allocated 145 seats
to startups in the state. This incubator also acts as the
nodal agency of the Government of Chhattisgarh for the
overall entrepreneurial development in the state.

86 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 HIMACHAL PRADESH

Set-up or support incubators in the State

The state government has taken sufficient steps to support incubators and to provide incubation support to startups.
The support offered by the state is in the form of a financial grant that can be leveraged by the incubators on behalf
of the state.
The state government has encouraged reputed universities/ institutes such as the Indian Institute of Technology
(IIT) and the Indian Institute of Management (IIM) to establish incubators in the state. The state government is also
keen on setting up incubators in existing institutes such as Himachal Pradesh University, (HPU) Shimla, Chaudhary
Sarwan Kumar (CSK) Himachal Pradesh Agricultural University Palampur, Dr. YS Parmar University of Forestry and
Horticulture Nauni and Institute of Himalayan Bioresource Technology (IHBT) Palampur.
The state has provided a list of 100 seats allocated under several incubators.
An incubation fund has been set-up in the state with an initial corpus of INR 5 crore. Under the startup scheme/
policy, the state provides the following subsidies to incubators:
A grant of INR 30 lakh per year for three years will be given to selective institutions for setting up incubators and other
activities.
Additionally, a grant of up to INR 10 lakh will be given for meeting recurring expenditures.

Name of Institution Subsidy amount availed (INR)

CSK Himachal Pradesh krishi Vishvavidyalaya 39,73,742

Dr. YS Parmar University of Horticulture and Forestry Nauni 31,06,149

CSIR institute of Himalayan Bioresource Technology 39,67,611

Indian Institute of Technology 36,02,300

Jaypee University of Information and Technology 37,53,136

Himachal Pradesh University 37,72,797

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 87

 TELANGANA

Setting up of new and upgrading existing incubators

The state has the technology incubation center (T-hub) at the International Institute of Information Technology (IIIT)
Hyderabad. It supports and promotes technological innovations occurring in the Hyderabad startup ecosystem.
A state-of-the-art building with 70,000 sq. ft. height, called ‘Catalyst’ brings together partnerships from different
verticals to help startups shorten the sprint towards their goal. One of the most popular programmes run by the
catalyst is Lab32.
T-Hub aims to promote entrepreneurship in the state. Catalyst operates on a PPP model between the Government
of Telangana, IIIT-H, Indian School of Business (ISB), National Academy of Legal Studies and Research (NALSAR), and
key private sector leaders. It also hosts regular talks, networking events, workshops, mentoring sessions, and more
for the benefit of all its members.
• Taking a cue from the success of T-Hub, the state aims to develop world-class physical infrastructure that would
provide a conducive environment for ideas to originate, scale-up, and see business fruition.
• T-Hub’s state-of-the-art startup programmes are designed to foster a culture of innovation and entrepreneurship
through access to cutting-edge technology and a network of corporates, mentors, investors, and service providers.
The state administers the following forms of support through T-Hub:

Corporate connects
Mentorship Opportunities Workshops and Investor connects
and networking seminars

88 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

We-Hub
The state is committed to empowering women entrepreneurs, through the women-focused Incubation Center
called “WE-Hub”, from various sectors to launch startups and has provided support through funding, mentoring
strategy, and growth. The objectives of WEHub are to:
• Provide access to government incentives
• Incubation support to women entrepreneurs
• Talent/ skill development to catalyse the growth of the skilled workforce
The benefits of We-Hub include the following:

Peer community: Global market access: Mentorship:

Community of women Platform for growth-stage Over 50 experts from various
founders for promoting startups with opportunities to domains and expertise.
peer-to-peer learning and access product fitment and
collaboration. readiness to new markets
across the globe.

Industry connect: Access to workshops: Customised incubation

programme:
Access and curated Access to a specifically
connections between global designed workshop focusing Selected startups to undergo
companies and high potential on different aspects of the eight months curated and
WE-Hub selected startups. business. customised incubation
programme with targeted
interventions.

Investor connect: Government liaising: Access to events:

WE-Hub brings together top Information about various Selected startups get access
Indian Private Equity (PE)/ initiatives and opportunities to all WE-Hub related events
Venture Capital (VC)/ Seed/ and helps women founders and explore networking
Angel Funds and promising to make use of various opportunities.
entrepreneurs in any industry. opportunities.

Acceleration Programmes
T-Hub and Facebook intend to partner and have a deep collaboration in the area of Augmented Reality (AR)/ Virtual
Reality (VR) Technology. The top five to six startups selected through this acceleration programme would work with
Facebook, T-Hub teams, and mentors, to collaborate and prioritise the solution. All interventions would happen at
T-Hub Hyderabad. The T-Hub website provides details about the programme.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 89

 UTTAR PRADESH

Set-up or support incubators in the state

The state has emphasised on providing funding and setting up of 13+ state-wide startup incubators. Such
programmes in association with industry shall promote innovation and ensure sustainability. Moreover, the state
has submitted details of 169+ beneficiaries to whom the seats are allocated by two incubators.

Acceleration Programmes
The state has created awareness about the Internet of Things (IoT) wherein iBuild (iB) hubs startup schools as
Student Acceleration Programmes are designed for intense learning of the students. The startup schools are
established in collaboration by the state for student entrepreneurs to kick-start their startup journey. The state
has conducted a large number of bootcamps in association with iB hubs startup school and has made efforts
to make right partnerships towards an elevated entrepreneurial journey aimed to avail long term benefits for
the state’s startups.

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PILLAR SEED

05 FUNDING
SUPPORT

OVERVIEW 90

SNAPSHOT OF BEST PRACTICES & IMPACT 91

STATEWISE DETAILS ON BEST PRACTICES 94

STATEWISE DETAILS ON BEST PRACTICES

FROM PREVIOUS YEAR 101

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 91

01: Overview

List of featured states Ideal Practice

Provision of seed funding to startups is given to enable them
BIHAR to grow and generate their own revenue stream. Relevant
ideal practices are described in this section.
CHHATTISGARH
State should have a defined corpus for seed funding. The
KERALA funding should be provided in the form of a grant for product
development, market testing and Intellectual Property Right
MAHARASHTRA (IPR) filing. The equity percentage to be invested should be
presented to the startup before the investment is made. A
ODISHA monthly sustenance allowance may be provided in form
of stipend or reimbursements for pre-defined expenditures.
RAJASTHAN
Startups, on the other hand, must submit and follow a
Featured states from utilisation plan in line with the pre-agreed covenants.
previous year Investors should monitor progress through periodic
meetings with the startups.

Finally, there should be an online tracking mechanism for

KARNATAKA applications which displays the time limit for each step of
the application process.

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02: Snapshot of Best Practices & Impact

01 02 03
BIHAR CHHATTISGARH KERALA

SYNOPSIS: The state government SYNOPSIS: The state has set- SYNOPSIS: The government
provides seed funding support to up two funds viz., ‘Leap of Faith provides seed funding support in
startups in the form of a ten-year Revolving Fund (LoFR)’ and ‘36 the form of monthly assistance
interest free loan for validation Angel Fund (36AF)’ with an initial for a year. In addition, it offers
of the idea and/ or prototype corpus of INR 10 crore each to financial assistance for product
development. The financial support seed funding of startups. development and marketing.
assistance covers activities of The funds allow each qualified Further, it encourages banks in
travel, market research, skill enterprise to avail upto INR 50 the state to enhance their lending
training and marketing. The lakh in seed funding and is sector facilities and set-up a separate
assessment of qualified startups agnostic. The startup policy of desk for startups for easy
is made jointly by the incubation the state clearly highlights the financing.
center and an expert committee. eligibility criteria and extent of
seed funding.

IMPACT: The state has provided IMPACT: The government has IMPACT: The state government
seed funding to 70 startups supported 13 startups through has supported more than 240
among which 5 are women- seed funding in a mix of sectors of startups through seed funding
led startups. The seed funding IT, Healthcare and Electronics. with an average investment of INR
disbursed so far has been over 7.5 lakh per startup.
INR 4.5 crore towards startups.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 93

 04 05 06
MAHARASHTRA ODISHA RAJASTHAN

SYNOPSIS: The state government SYNOPSIS: The government SYNOPSIS: The state government
has provided a platform to provides monthly assistance to provides funding assistance
startups in order to leverage startups for a year. In addition, to startups registered under
financial assistance from it offers financial assistance the state’s iStart programme
institutions by securing for product development and which provides startups
seed funding support. Funds marketing. Further, it encourages with sustenance allowance,
earmarked for seed funding can banks in the state to enhance seed funding assistance and
be availed through a well-defined their lending facilities and set-up marketing assistance. The
online application process. The a separate desk for startups for application procedure to avail
seed funding provided to startups easy financing. seed funding is clearly highlighted
is in the form of grants and on iStart Rajasthan (https://istart.
reimbursements. rajasthan.gov.in/)

IMPACT: The state government IMPACT: The state government IMPACT: The state provided
implemented the Fintech Corpus has provided seed funding to 91 43 startups with sustenance
Fund in 20+ districts in the state startups. allowance and seed funding, 37
with a total budget of INR 25.19 startups with marketing allowance
crore per annum benefitting and funding to 14 startups
more than 5,000 Self-Help Groups under Techno Fund. The funding
(SHGs) and entrepreneurs. for startups under marketing
Further, it has supported 60+ allowance was maximum
startups through grants and amongst all categories with most
reimbursements. startups receiving between INR 5
lakh to INR 10 lakh

94 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 07
KARNATAKA

SYNOPSIS: The state has defined

the mechanism and guidelines
for seed funding and the process
is transparently available on the
portal under the operational
guidelines of seed funding for
state startups. Typically, the
funding is released in tranches as
per the project milestones agreed
upon in the memorandum of
agreement.

IMPACT: Idea2PoC through

‘ELEVATE 2019’ is given in the form
of grant-in-aid up to INR 50 lakh.
A total of 245+ startups have
benefitted from seed funding
support in the state.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 95

03: Statewise details on best practices

BIHAR

Seed Funding Guidelines

The process to access seed funding has been clearly defined in the policy. Further, it also defines the support offered
across various stages after seed funding stage i.e. commercialisation stage and scale-up funding stage.

VALIDATION Seed Funding Support upto INR 10 lakh/ startup

STAGE (detailed in the point below)

COMMERCIALISATION
This is provided in two categories as mentioned below:
STAGE

EARLY STAGE Success fee of 2% of the investment provided to startups to

mobilise investments from state registered angel investors

SCALE- UP FUNDING Funding from trust supported venture funds along with assistance
SUPPORT provided for listing and public issue of startups

The seed funding guidelines (validation stage) are clearly mentioned in the startup policy of Bihar.
These are as follows:

• Extent of seed funding is INR 10 lakh per startup as interest free loan for ten years.
• An amount equal to 5% of the grant amount shall be contributed by the incubatee into the startup.
• The financial assistance shall be provided to startups for validation of idea, prototype development,
assistance towards traveling costs and carrying out field/ market research/ skill training/ marketing and
initial activities to set-up a startup.
• The application process is through certification of the startup and submission of proposal by the incubator.
• The assessment is then made jointly by the incubation center and the Expert Committee.

96 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 CHHATTISGARH

Seed Funding Guidelines

The state lays down clear guidelines for seed funding and has reliable infrastructure in place to provide early stage
funding support to startups. The state’s startup policy clearly outlines the eligibility criteria, extent of seed funding
and the application procedure for startups to avail seed funding from the state.
To promote seed funding opportunity to startups in the state, the State has set-up a ‘Leap of Faith Revolving Fund
(LoFR)’ and ’36 Angel Fund (36AF)’ for supporting the startups through seed funding.
The key constituents of the Leap of Faith Revolving Fund:

• An initial corpus of INR 10 crore has been set aside and handed over to the disbursal agency
• A maximum of INR 50 lakh limit has been kept for individual enterprise
• State has also made provision that Invest committee members can become non-voting board members
and can invest into startups, upto 25% of the equity but not acquire the startup for the duration of the loan.
• The focus of this fund is to invest in high risk startups wherein returns are not envisaged as an impetus to the
entrepreneurial ecosystem in the state

The key constituents of the 36 Angel Fund are:

• An initial corpus of INR 10 crore has been set-up wherein the investment from the fund would be sector
agnostic and would ensure support to a broad mix of sectors in Chhattisgarh
• The fund’s co-investment in the startup would be restricted to 50% of the investment made by angel fund/
angel groups in that round of investing, subject to a ceiling of INR 50 lakh per individual enterprise
• The angel network considered for investing should have disbursed a minimum of INR 10 crore over its lifetime
and INR 3 crore (and at least 5 deals) in the last 12 months
• The state has a robust online system in the form of its startup portal where startups apply for seed funding.
• The portal http://36inc.in/accelerator/application_form.php allows startups to register and submit their
application for seed funding through the online portal of 36INC with relevant documents. Startups can access
the forms, guidelines and documents from the 36INC Web Portal.
• The startup application can be tracked online at portal (http://36inc.in/funding_report/login_easy_nirman.
php) and also by reaching out to the designated Manager or to the Chief Executive Officer (CEO).
• Status of the approvals is communicated online at portal (http://36inc.in/funding_report/dashboard_
easy_nirman.php)

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 97

 KERALA

Seed Funding Guidelines

The state has performed exceedingly well in establishing seed funding guidelines. Applications are invited through
the state’s startup portal. Shortlisting is undertaken by a panel of experts and the shortlisted startups are asked to
submit a two-minute video introduction of the product along with a fund utilisation plan. The shortlisted startups
then pitch to a screening panel who recommend whether the idea is worth pursuing. More than 90 startups have
availed seed funding in the state.
The state’s startup policy has clear guidelines for seed funding support. The innovation grant scheme and the seed
support scheme detail out the eligibility, extent of support and procedure to avail the same.

INNOVATION This scheme was envisioned to provide financial assistance to startups

GRANT and entrepreneurs to help them convert their innovative ideas to full-
SCHEME fledged ventures

THE FOLLOWING ARE ELIGIBLE TO APPLY UNDER THIS SCHEME:

• A student studying in Kerala
• An innovator based out of Kerala
• A startup registered in Kerala

VARIOUS TYPES OF GRANTS AVAILABLE UNDER THIS SCHEME ARE:

• Idea Grant – Limited to INR 2 lakh/idea, primarily for conversion of idea to prototype
• Grant – Limited to INR 5 lakh/idea, to convert prototype to a Minimum Viable Product (MVP)
• Scale-up Grant – Limited to INR 5 lakh/idea, to help innovators with an MVP to develop the initial market
• Research and Development (R&D) Grant – Limited to INR 30 lakh/startup, given to highly promising hardware
startups with working prototype or IP which needs to be developed into a final product through extensive
research and development

98 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

SEED SUPPORT SCHEME
• This scheme was introduced to provide financial assistance to startups to foster the formation and
development of innovative, technology-based business enterprises. The scheme is implemented through
KSUM
• Seed support would generally cater to prototype/ MVP stage financing for commercialisation of the
indigenous ideas, innovations and technologies
• Preference is given to startups with the Department for Promotion of Industry and Internal Trade startup
certification

EXTENT OF FUNDING UNDER THIS SCHEME IS:

• The support is limited to INR 15 lakh. The startup will be examined before placing the matter up to the seed
support expert committee for selection
• Startups requiring seed support for only capital equipment may not be encouraged
• The state’s startup portal has a well-defined online system for startups to apply for seed funding.
Entrepreneurs can create a login on the portal and can apply and track the status of their seed funding
applications on a real time basis and obtain necessary approvals towards the same

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 99

 MAHARASHTRA

Seed Funding Guidelines

The government of Maharashtra has encouraged
innovators to stimulate commercialisation of
their inventions through seed funding support to
startups in the state. The seed funding assistance
has strongly positioned the state to bridge the gap
between development and commercialisation of
startups.
The state government has constituted the ‘Hirkani
Maharashtrachi’ scheme and the ‘Fintech Corpus
Fund’ which have defined the eligibility, application
process and extent of funding support available for
startups in the state.

20+ The Hirkani Maharashtrachi

scheme has been
The state considers seed funding to be essential
DISTRICTS for a startup which further encourages aspiring
implemented in 20+ districts entrepreneurs to graduate to a certain level
across the state with a total
25.19
₹ whereby investments are raised through angel
budget of INR 25.19 crore per or venture capitalists.
CRORE BUDGET annum and more than 5,000
self-help groups (SHGs) and Seed funding support has enabled startups
to receive essential support from commercial
5,000
entrepreneurs have benefited
from this initiative. banks and other financial institutions.
SELF-HELP GROUPS

Online System for Seed Funding

The state has a robust online application system for startups to avail seed funding wherein the state has an
online tracking system, coupled with email communication for approvals for seed funding; thereby, simplifying the
disbursement process.

Seed Funding Beneficiaries

The state has provided seed funding support to 60+ UNIQUE STARTUPS through grants and reimbursements.
The startups were supported by Mumbai Fintech Hub between 1st May 2018 – 30th September 2019. 

100 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 ODISHA

Seed Funding Guidelines

The state’s startup policy clearly outlines the eligibility criteria, extent of seed funding and the application procedure for
startups to avail seed funding from the state. The state also has reliable infrastructure in place to provide early stage
funding support to startups.
Online System for Seed Funding
The state has a robust online system in the form of its startup portal where startups can apply for seed funding. The
portal allows startups to submit their application online for seed funding along with relevant documents. Startups
can track the application on the portal and obtain subsequent approvals online.
Seed Funding Beneficiaries
• As per its startup policy, the state has an objective to create a startup capital infrastructure fund of upto INR 25
crore to support development of hard and soft infrastructure for the startup ecosystem in the state. The state has
provided seed funding under the startup policy to 80+ startups.
• The policy also touches upon the state government contributing in private sector funds for the state’s startups
such as venture capital funds. The involvement of the state would be limited to one fourth of the total size of the
fund and would be based on the condition that the fund manager commits to bringing in three fourths of the
total fund size.
• The state has established a strong support system for seed funding. Startups can avail seed funding in the form
of monthly assistance of INR 20,000 for a year and INR 22,000 if the founder is a woman/ transgender or from
social category SC/ST/OBC.
• Product development and marketing/ publicity assistance up to a maximum of INR 15 lakh is available for startups
and INR 16 lakh if the founder is a woman/ transgender or from social category SC/ST/OBC.
• Furthermore, the state encourages banks and other financial institutions to extend and enhance their lending
facilities to startups and set-up dedicated desks for startups in select branches for easy funding.
• In addition to the above, VAT/CST paid in Odisha by the startup companies shall be reimbursed as per the
Industrial Policy 2015.
• The state also encourages various seed capital funding agencies to forge strategic partnerships with industry/
startup associations in the state.
• An “Odisha Youth Innovation Fund” has been proposed in the “Odisha State Youth Policy (OSYP) 2013” for
promoting innovative entrepreneurship among the youth/ startups of the state. Further a “Youth Entrepreneurship
Development Agency” (YEDA) will be established to also promote innovation among young entrepreneurs and
providing mentoring support, market linkages and facilitate soft loans through schemes and financial institutions.
The size of the fund shall be INR 200 lakh funded by the state. The fund shall provide INR 50,000 for any new idea,
INR 1,00,000 for a prototype and INR 3,00,000 for development of a startup based on eligible innovative idea.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 101

 RAJASTHAN

Seed Funding Guidelines

The state has formed clear and specific guidelines on seed funding and established reliable infrastructure to
promote startups.
Funds have been provided by the Department of Information Technology & Communication, Government of
Rajasthan which entails seed funding benefits for the startups through:

Sustenance Allowance: The extent of funding provided under this funding support is a grant of INR 10,000/- per
month for one year to eligible startups
Seed Funding assistance: The assistance provided under this funding support is up to INR 2 lakhs in the form of
loan to eligible startups
Marketing assistance: The assistance provided under this funding support is up to INR 10 lakhs in the form of
loan/ convertible equity.

The state has published a detailed list of startups availing seed funding in the state. Disclosure of such information
improves transparency and instills confidence in the state’s startup ecosystem.
Benefits have been disbursed to 55+ beneficiary startups with direct funding under the provisions of Rajasthan
Startup policy 2015.

Online System for Seed Funding

The state has prioritised provision of seed funding
to startups. The startup online portal provides a
mechanism to avail seed funding benefits, additional
funding guidelines and resources for application
procedure on the portal. The portal also includes
tracking of applications and communication of
approvals for startups to get real-time updates.

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04: S
 tatewise details on best practices
from previous year

KARNATAKA

Seed Funding Guidelines

• The Government of Karnataka provides seed funding under the ‘Idea2PoC’ scheme of the Startup Policy of
Karnataka 2015-20. Idea2PoC through ‘ELEVATE 2019’ is given in the form of grant-in-aid but limited to a one
time grant of up to INR 50 lakh. Funding is released in tranches as per the project milestones agreed upon in the
memorandum of agreement between the startup and Karnataka Biotechnology and Information Technology
Services (KBITS).
• The mechanism and guidelines for seed funding are elaborated and the process is transparently available on
the portal under the operational guidelines of seed funding for state startups.
• A total of 245+ startups have benefitted from seed funding support in the state.
• Under the provision of seed funding initiative, the State Government has provided financial support to beneficiaries
having received seed funding in the form of a grant. Government of Karnataka has provided benefits to the
following number of startups through designated calls:
Calls Number of beneficiary startups

Elevate 2018 77

Assisted Accelerator Idea2PoC 10

Elevate 2019 95

Unnati Scheme 18

Startup Yatra 12

ESDM Startup Incentives 21

Startup Incentives 15

Total 248

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 103

PILLAR VENTURE

06 FUNDING
SUPPORT

OVERVIEW 103

SNAPSHOT OF BEST PRACTICES & IMPACT 104

STATEWISE DETAILS ON BEST PRACTICES 106

STATEWISE DETAILS ON BEST PRACTICES

FROM PREVIOUS YEAR 111

104 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

01: Overview

List of featured states Ideal Practice

The state government should ideally have a pre-defined
GUJARAT corpus of venture funds along with the tenure in which the
funding is aimed to be disbursed. Further, the target to be
KERALA achieved under venture funding should be defined on a
year-on-year basis.
MAHARASHTRA
Clear operating guidelines and process to set-up venture
RAJASTHAN funds should be outlined by the state government which
would enable easy and transparent set-up of such funds.
Featured states from
Venture Funds in turn, should also have a guideline for
previous year startup applications which should be clearly available
on the state’s startup portal. They must define their focus
sectors or specify their preference for specific sectors to
KARNATAKA
invite the relevant startup applications. Additionally, they
UTTAR PRADESH must specify whether the venture funding is in the form of
equity or loan.

Finally, the general expectation of venture funds from

startups in terms of expected growth year-on-year,
minimum quantum of investment, prototyping stage of the
startup should be clearly set out.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 105

02: Snapshot of Best Practices & Impact

01 02 03
GUJARAT KERALA MAHARASHTRA

SYNOPSIS: The state has an SYNOPSIS: The state government SYNOPSIS: The state government
active investor community which has established guidelines for has a corpus of INR 116 crore to
consists of various investing supporting Alternate Investment promote state entrepreneurial
organisations such as the Gujarat Funds (AIFs) highlighting talent through the ‘social welfare
Venture Finance Limited (GVFL), evaluation criteria, eligibility fund’ called the Maharashtra
the Gujarat Angel Investors and the application procedure. State Social Welfare Fund. The
Network (GAIN) and angel The evaluation criteria for SEBI investment manager for the fund
investors. The funds make accredited AIFs is divided into is SIDBI.
an equity or a quasi-equity financial and technical evaluation
investment through a sector thereby making the evaluation
agnostic approach. The funds comprehensive. The state
focus on highly scalable government has committed a
innovative business models. total of INR 59 crore for venture
funding support.

IMPACT: The state government IMPACT: The state government IMPACT: The state has funded a
has supported more than 100 has 4 venture funds out which 2 total of 9 startups through venture
companies through its funds. In are SEBI registered funds. There funding support.
the period of consideration, a are a total of 10 startups that have
disbursement of INR 20 crore has benefitted from venture funding
been funded towards 4 startups. support with a disbursement of
INR 20 crore.

106 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 04 05 06
RAJASTHAN KARNATAKA UTTAR
PRADESH
SYNOPSIS: The state government SYNOPSIS: The state has SYNOPSIS: Uttar Pradesh has set-
has established a number of established funds to assist up fund of funds, wherein the fund
indigenous venture funds and is startups in the field of does not directly invest in startups,
well connected with renowned semiconductor, biotech, and rather, it shall participates in SEBI
angel networks in the state. Among allied sectors and animation, approved investors. The fund
the four venture funds, one fund video, gaming, and comics. An makes an investment in “Daughter
(Techno Fund) is completely state investment committee has been Funds,” which would invest in
operated and has a corpus of INR set-up to assist funding of such startups promoting innovative
500 crore for investment towards startups. ideas across all sectors in Uttar
infrastructure/ substructure. Pradesh.

IMPACT: The state has funded IMPACT: The state had launched IMPACT: Uttar Pradesh’s Startup
32 startups through venture venture capital funds as follows: Fund has a corpus of corpus size
funding support with over INR 6 of INR 1,000 crore. Two Venture
crore disbursed and an average • Karnataka Semiconductor Funds, Venture Catalysts, and
investment of approx. INR 20 lakh. Venture Capital Fund Orios Venture Advisors have
(KARSEMVEN Fund) with INR 100 signed an MoU with IT & Electronics
crore Department, Government of Uttar
• KITVEN 3 (Biotech) with INR 50 Pradesh for investing in Uttar
crore Pradesh based-startups

• KITVEN 4 (Animation Visual

Effects Gaming and Comics)
with INR 20 crore
• KITVEN 2

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 107

03: Statewise details on best practices

GUJARAT

Support to Venture Funds

The state has an active investor community which consists of various investing organisations such as the Gujarat
Venture Finance Limited (GVFL), the Gujarat Angel Investors Network (GAIN) and angel investors.
The state has been highly proactive in its initiatives and actions to help startups grow and scale-up. Some of the
startup funds supported by the Gujarat government are given below:
GVFL Startup Fund: Founded in 1990, GVFL was the first venture capital to be set-up in India.
Set-up in Ahmedabad, GVFL has raised eight venture capital funds which have supported over
91 companies. The fund focuses on highly scalable innovative business models across sectors
which use technology as an enabler or differentiator and are backed by credible teams.
Fund Corpus
The GVFL Startup fund has been extremely beneficial in driving investments in startups in Gujarat. The fund has a
target corpus of INR 250 crore (including INR 50 crore green-shoe option). Government of Gujarat has intended to
invest a total of INR 75 crore in the Fund. The investments are made in early growth stage startups with a potential
for major growth within an investment horizon of 4-5 years

Investment Range
The investment from the fund is in the range of INR 2 crore to INR 20 crore in single or multiple rounds as per
business needs. The median investment is in the range of INR 10 crore to INR 15 crore

Startups funded by GVFL (Venture Fund)

iNurture provides graduate and post-graduate degree courses in new and emerging areas with focus on
employability in partnership with leading Universities and Colleges across India and abroad. The revenue is shared
with the college/ university for providing infrastructure and certification while delivery and content is managed by
iNurture.
E-infochips is one of the leading product engineering and software R&D services company with global presence.
It has to its credit 500+ product developments and over 400+ deployments across 140 countries. GVFL exited from
e-Infochips, with a massive return of 7.4 times of its investment
Axio Bio-solutions is engaged in business of Haemostatic Medical device dressing with brand name of AXIOSTAT
and Sure Klot. It belongs to an advanced class of wound dressings that would stop traumatic external bleeding
within few minutes of application by providing an active mechanical barrier to the wound site, thereby stopping
hemorrhage. GVFL exited from Axio Bio Solutions with a return of 7 times of its investment.
108 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES
Gujarat Biotechnology Venture Fund
• The fund was launched in 2005 under the initiative of Gujarat State Biotechnology Mission. The fund identifies
startups, early stage and existing companies in areas of Biopharma, Agri-Biotech, Contract Research,
Industrial Biotechnology and other potential areas in biotechnology. The fund has invested in four companies
and exited from one
Startups funded by GBVF
• Celestial Biologicals Limited offers a wide range of Pharmaceutical formulation like tablet, capsule, syrup.
• Century pharmaceuticals Limited is the manufacturer, exporter and supplier of highly reliable range of API
and animal health product
• Amrita Therapeutics Private Limited is in the vanguard of biopharmaceutical companies translating
microbiome technology into practical tools to improve human health.
• Aura herbal wear Limited is the manufacturer of herbal natural dyes

Gujarat IT Fund
• The fund was formed in 2000 to promote IT companies present in the state. Profile of the investee companies
ranges from Pure play Mobile VAS to radio frequency identification products to solar based lighting. The fund
has invested into 10 companies and exited from four out of the same
Startups funded by Gujarat IT Fund
Deccanet Designs Limited: The Company provides services and solutions in the telecommunications domain
to a host of clients across the globe. The Company specializes in Outsourcing Research, Software Design
Services, System Integration, Carrier-class product design, Testing and test automation tools. The company
was acquired by Flextronics
Scicom Technologies Pvt Limited: The company offers services, such as, Software services for Oil & Gas
exploration, Surface geophysical modelling, medical diagnostic imaging, GIS, Computer Aided engineering,
defense sector simulation etc.

Gujarat Venture Capital Fund (GVCF 1997)

• This fund was launched for the small sector with emphasis on IT industry. The duration of the fund was 12
years. The fund supported innovative software product-based companies across India. Investments were
made in companies ranging from chip designing to telecom-based products. It has been liquidated with
profits in 2008
Startups funded by Gujarat Venture Capital Fund
Ratnakar Estate Developer Private Limited (REDPL): Golden Gujarat Growth Fund -I has invested in an industrial
park, REDPL which is into developing eco friendly industrial parks in Gujarat covering an area of over 100 acres. It is
along the Delhi Mumbai industrial corridor. Strategically located, in high growth region connecting Ahmedabad
and Mumbai, along NH-8 which means good connectivity along with significant future demand from diverse
industrial segments. The project would provide for customised plug and play infrastructure facilities to suit end
users. The project has evinced keen interest from MNCs and large domestic industrial houses
Saraf Foods Limited: Saraf Foods is the first company in India to process Vacuum Freeze Dried fruits and
Vegetables using indigenous technology
STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 109
 KERALA

Support to Venture Funds

The financial evaluation involves the following
The state has taken key steps to support venture funds parameters
by establishing clear guidelines for Alternate Investment
• Size of the investment committee
Funds (AIF). The guidelines highlight the evaluation
criteria, eligibility and the application procedure for • Return on Investment
applying to such funds. Currently, the state has extended • Fee and Expenses
support to four venture funds:
• Distribution Waterfall
• Unicorn India Ventures
• Sea Funds Further, the recommended funds are required to give a
• Indian Angels Network fund presentation, post which they are given a final approval.
Currently, the state has tie ups with four SEBI registered
• Special Invest fund
AIF’s.
The state has established clear operating guidelines
for selection of Securities and Exchange Board of KSUM’s commitment (INR
Fund
India (SEBI) accredited AIFs. As part of the guidelines, Crore)
the state invites proposals from SEBI registered AIFs, Unicorn India Ventures 20
with the evaluation being undertaken in two stages
Indian Angels Network 15
i.e. technical and financial evaluation. The technical
evaluation involves the following parameters Special Invest Fund 4
• History, background and experience of the AIF Exseed Electron Funding 20
and its manager
• Ties to the Kerala startup ecosystem The guideline also outlines a detailed application
• Investment culture and thesis as mentioned in procedure for startups to apply for funding under these
the Private Placement Memorandum funds.
• Tenure of the AIF and its current stage
• Legal and Regulatory compliances of the AIF

110 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 MAHARASHTRA

Support to Venture Funds

• The government of Maharashtra has presupposed definite investments for
disbursement to startups under the ambitious “Maharashtra State Innovation and
Startup Policy”. The state encompasses to set-up incubators in order to foster an
overall conducive environment for the startup ecosystem.
• The state government has sanctioned state Social Welfare fund with a huge corpus
of INR 116 crore to promote state entrepreneurial talent and to provide them with
sufficient funds to build a thriving startup ecosystem. Nine unique startups ventures Corpus of

INR 116
have received funding.
• Maharashtra State Social Venture Fund was established an Alternative Investment
Fund (“AIF”) in 2015 with the objective to identify and invest in profitable and
scalable business ventures, including innovative business model or new products &
Crore
technologies which would have the potential to provide social benefits to promote
• Maharashtra State Social Venture Fund (MSSVF) is an Alternative Investment Fund state
(AIF), where Small Industries Development Bank of India (SIDBI) Venture Capital
entrepreneurial
Limited is the designated investment manager. Through MSSVF, nine unique startups
have been provided funding in the state. talent
• The state has maintained and shared a list of the state’s startups availing and in-
receipt of venture funding or funds from the government. The list also cites details on
the amount of funding received by the startups and the date of disbursement.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 111

 RAJASTHAN

Support to Venture Funds

The state encourages angel investor network agencies to forge strategic partnerships with industry/ startup
associations in the region. The state has established a number of indigenous venture funds and is well connected
with renowned angel networks in the state.
Key Venture Funds in the state are:

Techno Fund- The state has introduced a INR 500 crore fund to ensure robust growth in investment
infrastructure/ substructure. The fund is completely state operated.
Rajasthan Venture Capital Fund (RVCF) – The fund was established as the state’s first venture capital
fund under Rajasthan State Industrial Development and Investment Corporation (RIICO), a Government of
Rajasthan undertaking. RIICO is both a fund subscriber and an investor in the fund.
INVENT is a flagship multi-faceted funding programme of Startup Oasis. INVENT is managed by a group of
experts for the purpose of fund management. The group comprises of the Internal Investment Committee
Rajasthan Angel Investor Network- Government of Rajasthan is well connected to many startup enabler
networks including renowned angel networks such as Rajasthan Angel Investor Network

The state has strongly backed venture funds in order to encourage startups to avail various benefits from the funds.
The state has deployed startup friendly measures across its funds, such as, offering the first level of evaluation of
proposal in online mode and providing easy funding options in the form of either loans or equity.
Startups funded from Venture Funds
The state has been successful in attracting, engaging and funding 32 startups as a part of the state initiative. Some
of them include Gram Power, Ecowrap, Hippocabs, Tax2Win etc.

112 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

04: S
 tatewise details on best practices
from previous year

KARNATAKA

Support to Venture Funds

To provide sustained support to the Startups, the Government of Karnataka has operationalized fund of funds for
investing in venture funds that invest in Startups in various sectors. Following Venture capital funds have been
launched in the State with a key focus on selected sectors:
Karnataka Semiconductor Venture Capital Fund
KITVEN 3 (Biotech) with INR 50 crore
(KARSEMVEN Fund) with INR 100 crore

KITVEN 4 (Animation Visual Effects Gaming and

KITVEN 2
Comics) with INR 20 crore and

The funds have been established to assist Startups in the field of semiconductor, biotech, and allies sectors and
animation, video, gaming, and comics. To guide the above process, an investment committee with Officers from
the Government, industry, and academic experts with sector-specific domain knowledge, financial and legal
background, etc. with no conflict of interest has been constituted.
KITVEN funds have also released guidelines for entrepreneurs applying to these funds for their funding needs.
Companies seeking Venture Capital assistance may please forward their Executive Summary (not exceeding 4-5
pages) online keeping in mind investment criteria, objectives, and the area of operation of the respective fund
under management. The executive summary must contain the following information in brief:
Company Background Short overview of the company, geographical location, founders background, funding so far, if
any

Market Opportunities Needs, Value Proposition, Size & growth of market

Products/Technology Differentiation, Barrier-to-entry, price & cost

Target Market Competition, Entry Strategy, Positioning , Distribution

Operating Plan Historical Results, Extract of Profit/Lass account & Balance Sheet

Funding How much & for what purpose? Financial projections that will take the company until next
round of funding

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 113

 UTTAR PRADESH

Support to Venture Funds

The Government of Uttar Pradesh has established a UP Startup Fund with a corplus size of INR 1,000 Crores. The
fund will not be invested directly into startups, rather, it shall participate in SEBI approved investors and make an
investment in ‘Daugther Funds’ which would invest in startups promoting innovative ideas across all sectors in Uttar
Pradesh.
The Government of Uttar Pradesh would take minority participation in the Daughter Fund, by being a limited partner
of up to 25%. The fund would be professionally managed and a Fund Manager shall be nominated/appointed to
manage the UP Startup Fund. A formal Memorandum of Understanding (MoU) would be signed with the Small
Industries Development Bank of India (SIDBI) to manage the fund operations.
IT & Electronics Department, Government of Uttar Pradesh has also signed MoUs with two Venture Funds, Venture
Catalysts, and Orios Venture Advisors for investing in UP based Startups.

114 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

PILLAR AWARENESS

07 AND
OUTREACH

OVERVIEW 114

SNAPSHOT OF BEST PRACTICES & IMPACT 115

STATEWISE DETAILS ON BEST PRACTICES 117

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 115

01: Overview

List of featured states Ideal Practice

Under this initiative, individual states have undertaken a
GUJARAT host of measures that not only connect stakeholders within
the startup ecosystem but also popularise the concept of
MAHARASHTRA ‘startups’ beyond metro cities.

RAJASTHAN The ideal way to achieve this objective is to hold focused

and regular hackathons & bootcamps ensuring attendance
ODISHA from across the state as well as frequent summit meets
that not only connect potential investors with budding
KERALA entrepreneurs, but also mentor & field experts.

KARNATAKA Each of these individual events, be it hackathons, bootcamps

or summits , should not only have a core theme retained but
also build upon preceding events, adding newer features
and topics. In these events, it is essential that ideas are not
limited to a certain domain and should attract maximum
participation from startups.

116 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

02: Snapshot of Best Practices & Impact

01 02 03
GUJARAT KARNATAKA KERALA

SYNOPSIS: The state has been SYNOPSIS: The state is host to 44% SYNOPSIS: The state has
proactive in aiding startups grow of the unicorns in India making performed well in reaching out to
& scale-up. Over the last year, it the country’s startup hub.1 The startups and helping them grow
the state has taken a host of state has created an enabling through frequent bootcamps
measures ranging from fostering environment for startups by with a focus on building on
organising bootcamps focusing
entrepreneurship through areas of foundational skills for
on entrepreneurship training,
bootcamps, inspiring creativity entrepreneurship, design thinking,
hackathons concentrating on
through hackathons, and helping product development and
technology solutions as well as
get funding support through angel investment workshops. programmeming. It has offered
angel investment workshops. The government has invited opportunities for startups to
In addition, the state has been participation from various participate in national as well as
offering startups opportunities districts of the state giving an international events.
to participate in national & equal opportunity to all startups.
international events.

IMPACT: The state organised 66 IMPACT: A total of 30 bootcamps IMPACT: The state organised 150+
bootcamps across 33 districts, were organised across 30 bootcamps across 22 districts in
12 hackathons/grand challenges districts. Most events witnessed the state. A total of 10 hackathons
in educational institutes and participation of more than and grand challenges were held
incubators, and 14 angel 100 students. One hackathon/ that had participation of upto 25
investment workshops benefiting grand challenge was organised, startups in each. Thirteen angel
more than 350 startups. It wherein 304 startups had investment workshops were also
facilitated participation of participated. The event covered conducted. The state facilitated
startups in 23 national & sectors such as healthcare, water, participation of startups in five
international events. agriculture, transportation and national and nine international
waste management. Additionally, events. Events abroad were
the state organised five angel hosted in nine countries.
investment workshops and eight
international events.

1
Source: Bengaluru Innovation Report

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 117

 04 05 06
MAHARASHTRA ODISHA RAJASTHAN

SYNOPSIS: The government has SYNOPSIS: The state has SYNOPSIS: The online platform
been consistent in its efforts to conducted various awareness ‘iStartup Rajasthan’ helped in
encourage, engage and enable and outreach events to the government’s awareness &
the entrepreneurial ecosystem consistently engage and outreach initiatives. The state
in the state. The state has also encourage the entrepreneurial fostered entrepreneurship
aimed to tap the considerable community in the state. The state through bootcamps, organised
potential of its people through the has performed well in fostering hackathons mentored by subject
Maharashtra Startup India Yatra, talent through bootcamps. It matter experts, helped connect
Mumbai Fintech Festival as well has provided financial support investors’ community through
as state-sponsored national & to startups for participating in angel investment events and also
international events. national/international events as sponsored startups for events.
well as for hackathons/grand
challenges.

IMPACT: The state organised 18 IMPACT: The state organised 33 IMPACT: The state organised
bootcamps across 36 districts in bootcamps across 30 districts, five 12 bootcamps across various
the state, one hackathon/grand hackathons/grand challenges cities, two hackathons/grand
challenge for sectors such as with participation from at least challenges with participation
Fintech, Govtech, & Regtech as 100 startups/students and six of 3,000 people, and 17 angel
well as one angel investment angel investment workshops with investment workshops. It
workshop benefiting more than participation from 25 startups. facilitated participation of
50 startups. It also facilitated It facilitated participation startups in 21 national &
participation of startups in four of startups in five national/ international events.
national & international events. international events.

118 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

03: Statewise details on best practices

GUJARAT

Bootcamps

The government of Gujarat has been proactive in its initiatives and

measures to help startups grow and scale-up. The government
has organised events in cities such as Ahmedabad, Vadodara
and Surat in collaboration with many universities providing
student innovators with an opportunity to develop a sense of
‘starting up’ and boost the entrepreneurial ecosystem.

The state implemented the first-ever Student Startup and Innovation Policy
in 2017 to assist young innovators from the state. Through funds received
under this policy, the education department of Gujarat conducted 60+
bootcamps spread across 33 districts. The bootcamps primarily focused on
ideation sessions, mentor workshops, pitching sessions and benefits under
startup India. Special women-focused bootcamps were also conducted
to inculcate entrepreneurial skills with an aim of strengthening women
entrepreneurs both in rural and urban India.

The state has focussed on its technology talent and conducted hackathons
to put data to better use in a way to crowdsource business ideas and
solutions to specific problems. 10+ Hackathons were organised by the
Higher & Technical Education Department in Gujarat benefitting more than
2500 participants, across various institutions and incubators.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 119

 Some of these are mentioned below :

Gujarat Industrial Hackathon, Gujarat Industrial Hackathon, Smart India Hackathon 2019
Auro University, Surat PDPU, Gandhinagar
Gujarat Industrial Hackathon, Student Open Innovation Dewang Mehta IT Hackathon
BVM, Anand Challenge, iHub, Ahmedabad
Gujarat Industrial Hackathon, EarthXHack, iCreate, Biothon 2018
IITRAM, Ahmedabad Ahmedabad
Gujarat Industrial Hackathon, CRIDAH Youth Connect 2019 Let’s Hack 2019
Marwadi University, Rajkot

Angel Investment Workshops Angel Investor Meet 2019

The state has conducted various angel investment Empresario 2019 - Angel Investment Workshop
workshops to promote funding of startups.
Finding the Funding
Highway to A 100 Unicorns: Microsoft for Startups
A TOTAL OF
Investment101
350+ STARTUPS
Investor Connect 2018
GOT A CHANCE TO PARTICIPATE IN
PitchDeck101
THE FOLLOWING ANGEL INVESTMENT
WORKSHOPS CONDUCTED BY THE Venture Leap 2019
GOVERNMENT IN ASSOCIATION VGSTS 2018 - Angel Investment Workshop
WITH INDUSTRY PARTNERS

120 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 In order to foster support through angel investment, the government allowed free access to the seminar hall
with a facility of projector and internet connectivity for startups at six locations in the state. The purpose was
to create physical proximity between startups and angel investors allowing startups to shape their businesses
effectively.

National and International Events

The state has conducted more than 20 national/international events. Some of these
events are listed below:

EXHIBITION ON FUTURISTIC TECHNOLOGIES,

SCIENCE CITY, AHMEDABAD (17 JANUARY 2019)
NATIONAL LEADERSHIP SUMMIT ON WOMEN &
EDUCATION 2019 (18 FEBRUARY 2019)
FESTIVAL OF IDEAS, SURAT
(15 – 17 MARCH 2019)

PROJECT EXPO 2019 (20 MARCH 2019)

45TH NRDC MERITORIOUS INNOVATION AWARDS EMPRESARIO STARTUP SUMMIT 2019

CEREMONY & CONFERENCE ON “CONNECTING (30 – 31 MARCH 2019)
INVENTORS, INNOVATORS, INCUBATORS AND
INVESTOR FOR ACCELERATING GROWTH OF
STARTUPS, EDII, GANDHINAGAR (30 – 31 MARCH
2019) UNPLUGGED (12 APRIL 2019)

TIECON 2019 – PUNE (12 APRIL 2019)

STARTUP TURKEY, ISTANBUL, TURKEY

(26 – 29 APRIL 2019)
INDIA MACHINE TOOLS SHOW - 2019 (IMTOS -
2019), DELHI, INDIA (14 – 17 JUNE 2019)

START UP TANK 2019 (3 AUGUST 2019)

THE FOURTH INTERNATIONAL CONFERENCE
ON CREATIVITY AND INNOVATION FROM
GRASSROOTS [ICCIG 4]

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 121

 MAHARASHTRA

Bootcamps
Bootcamp workshops are conducted in schools and colleges
to foster innovation amongst students. The state supported 18
bootcamp events
• A few highlights were the Akola district business plan competition
in March 2019 with 70+ startups and incubators, the Nagpur
Innovation Fest in August 2019 which saw participation of over
1000 students, sessions for Startup Yatra winners at e-Summit,
IIT Mumbai and the Mumbai Fintech Hub Bootcamp series
• 14 of these bootcamps were a part of the Startup Yatra
campaign. 36 districts in the state were a part of the bootcamp
initiative highlighting the widespread reach of the initiative by
the Maharashtra government

Hackathon/ Grand Challenge

• The state has organised one hackathon/ grand challenge to identify innovative technological solutions
and for supporting entrepreneurs in building these solutions as viable products or service offerings. The
hackathon saw a participation of 28 beneficiaries.
• The Mumbai fintech ‘HackM’ was organised as a part of the Mumbai Fintech Festival in 2018 to bring
together students, developers and designers to develop innovative solutions for emerging technology
adoptions in Fintech, Govtech, and Regtech

122 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

Angel Investment Workshops

Additionally, with support from

the Maharashtra government,
innovative fintech startups were
selected from a list of 60+ startups
registered with the Mumbai Fintech
Hub to participate in the Singapore
The state organised an ‘Angel Investment Workshop’ Fintech festival which drew close to
during Maharashtra Startup week in 2019 which was 45,000 participants from over 130
attended by 20 venture capitalists/ angel firms countries

National and International Events

• The state supported its startups for participating in four national/international events. The support to startups
has been in the form of grants, reimbursement for travel, accommodation or registration.
• In addition, the national/ international events include knowledge exchange, seminar or workshops, pitching
sessions helping in fostering innovation and developing skills amongst entrepreneurs.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 123

 RAJASTHAN

The state has been proactive in its initiatives and measures to help startups grow and scale up. Cities such as
Jhalawar, Kota, Udaipur, Jaipur, Jodhpur and Bharatpur have many universities providing student innovators an
opportunity to ideate and be mentored in order to effectively startup.

Hackathon or Grand Challenges

The state conducted two hackathons which saw a participation of more
than 2300+ people . The details are:
• Online Hackathon - The first-ever “Code-From-Home” online hackathon
was organised as part of Challenge for Change – a flagship contest by
Rajasthan’s Department of Information Technology and Communications.
The winners were awarded an all expense paid entry to Rajasthan
Hackathon 5.0
• Hackathon 5.0 –The event was for a 36-hour duration hackathon with 24-
hour of non-stop coding marathon. The event was mentored by subject
matter experts offering brilliant coders, developers & designers an excellent
platform. The winners were awarded prizes worth INR 32.5 lakh along with
an exclusive opportunity to work with the Government of Rajasthan. A total
of 3,000 people participated in the hackathon.

Angel Investment Workshops

The state conducted events to stimulate angel investments in the state which included:

124 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

National and International Events

The state has supported startups for participation in 21 national/ international knowledge
exchange seminars/ workshops. The events are listed below:

NATIONAL TOURISM CONCLAVE,

JAIPUR (JULY 2018)
ENTREPRENEUR 2018, NEW DELHI (JULY 2018)

DIGIFEST BIKANER, BIKANER (JULY 2018)

RAJASTHAN STUDENT STARTUP
EXPOSURE PROGRAMME, SILICON VALLEY,
USA (SEPTEMBER 2018)
BNI BUSINESS CONCLAVE, UDAIPUR (APRIL 2019)
THE GREAT INDIAN TRAVEL BAZAAR
(GITB), JAIPUR (APRIL 2019)
STARTUP CHOUPAL, JAIPUR (MAY 2019)

INNOVATE TO INSPIRE, JAIPUR (JUNE 2019)

RAJASTHAN RURAL ENERGY STARTUP
SUMMIT’, JAIPUR (JUNE 2019)
RAJASTHAN DIGITECH SUMMIT 2019, JAIPUR
(JUNE 2019)
MSME POLICY DISCUSSION, JAIPUR (JUNE 2019)

ASDC ANNUAL CONCLAVE 2019, NEW

DELHI (JULY 2019) REGIONAL KNOWLEDGE EXCHANGE WORKSHOP
ON STARTUPS, JAIPUR (JULY 2019)
RAJIV INNOVATION VISION 2019,
JAIPUR (AUGUST 2019)
NASSCOM ANNUAL TECHNOLOGY CONFERENCE
BOOK CONVERSATION WITH SHRI. SANJAY 2019, GURGAON (AUGUST 2019)
KUMAR ON ‘KATIHAR TO KENNEDY’, JAIPUR
(AUGUST 2019) HONORABLE CM’S VISIT TO TECHNO HUB,
JAIPUR (AUGUST 2019)
INTERACTION OF STARTUPS WITH HONORABLE
CM, JAIPUR (AUGUST 2019)
MEETING OF AGRI-SECTOR STARTUPS WITH
GOVERNMENT, JAIPUR (SEPTEMBER 2019)
MEETING OF EDUCATION SECTOR STARTUPS
WITH GOVERNMENT, JAIPUR (SEPTEMBER 2019)

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 125

 ODISHA

Bootcamps
The state has conducted various awareness and outreach events, such as, bootcamps, hackathons and angel
investment workshops to support startups.
• The state has performed well in fostering entrepreneurship through bootcamps. Around 30+ bootcamps were
organised covering 30 districts of the state. Most of these events had an ideation workshop and a mentoring
workshop conducted by a successful entrepreneur. Further, it had a ‘Startup India’ session to apprise startups on
the state and central governmment benefits and incentives.

Hackathons or Grand Challenges

The state has also carried out 5+ hackathon/ grand challenge events where at least one problem statement
was posed to startups and the events had participation from at least 100 startups/students.

Angel Investment Workshops

As part of its initiative to promote angel investment funding, the state has carried out 5+ angel investment
workshops to connect angel investors/HNIs/angel networks with startups. In a majority of these events, at
least two angel investors and at least 25 startups participated. Key events that took place were:

INVESTOR MEET IN INVESTOR MEET AT KIIT INVESTOR CONNECT STARTUP

ASSOCIATION WITH TIE BHUBANESHWAR EVENT ORGANISED IN LUMINESCENCE 2019
BHUBANESHWAR ASSOCIATION WITH KIIT-TBI
AND KIIT BHUBANESHWAR

126 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

National and International Events

The state provides financial support to state recognised startups for participating in reputed national and
international events. The support includes travel allowance and free space in the exhibition stalls set-up by the
state government.

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 127

 KERALA

Bootcamps
The state has been proactive in organising awareness and outreach events to help startups grow and prosper. The
state conducted 150+ bootcamps that concentrated on the following aspects.

FOUNDATIONAL PRODUCT TECHNICAL

DESIGN
SKILLS IN DESIGN AND TRAINING
THINKING
ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES

Hackathons

IBM CALL FOR CODE KERALA SINGULARLY GLOBAL IMPACT CHALLENGE

A two-day hackathon saw innovative technology solutions for The seven-day programme saw
solving crises that arise at the time of floods. It was hosted by participation from 25 startups focused
Kerala State Disaster Management Authority along with IBM and on solutions to address skill shortage
was attended by 25 startups in emerging technologies, waste
management in urban and rural areas,
and access to cost-effective prevention
and early diagnosis in health sector

KASARACODE HACKATHON

The event lasted for over 50 hours and saw participation from 10
successful startup founders

128 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

Angel Investment Workshops

STARTUP INVESTOR INVESTOR CAFE where

EDUCATION PROGRAMME startups looking for
called ELEVATE FOR STARTUP funds met with angel
in the field of computer investors and venture
hardware, robotics, healthcare capitalists to raise
and rural sectors. The main investments. More than
objective of the programme 200 unique meetings
was to educate professionals were conducted
from these sectors about between startups and
startups and the relevant investors over a period
investment opportunities of six months

KERALA INVESTOR SUMMIT in • Kae – Capital

association with Kerala State • Arali Ventures
Industrial Development Corporation
• SEA Fund
(KSIDC) co-hosted by Lets Venture
in Kochi aimed to bring together the • Astarc Ventures
high net worth network of Kerala and • Equanimity Investments
provide them opportunities to invest • Startup Xseed Ventures LLP
in some of the best startups from
• WEH Ventures
Kerala and other parts of India. The
following funds were present. • Sprout Venture Partners
• Special Invest

‘COMMUNE’ to facilitate interaction between entrepreneurs and the ‘IGNITE’ to create awareness
promoters of funded startups. It was attended by professionals from the about angel investing in
following funds: startups among the potential
investor community

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 129

National and International Events

THE STATE ALSO CONDUCTED MANY NATIONAL AND INTERNATIONAL EVENTS, A LIST OF WHICH IS GIVEN IN
THE TABLE BELOW:

DES WORLD CONGRESS,

SPAIN (MAY, 2018)
GITEX FUTURE STARS, DUBAI
(OCTOBER, 2018)
CONSUMER ELECTRONICS SHOW, USA
(JANUARY, 2019)
DLD, ISRAEL (SEPTEMBER
2018)
UNBOUND BAHRAIN, BAHRAIN
(MARCH 2019)
LONDON TECH WEEK,
ENGLAND (JUNE 2019)
RISECON HONGKONG, HONGKONG
(JULY 2019)
FICCI DELEGATION TO USA, USA
(MAY 2019)
INNOVFEST UNBOUND SINGAPORE,
SINGAPORE (MAY 2019)
IOTSHOW.IN, BANGALORE, INDIA
(FEBRUARY 2019)
ENTREPRENEUR 2019, NEW DELHI, INDIA
(JULY 2019)

130 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

 KARNATAKA

The state is active in organising bootcamps, hackathons, angel investor meets and international events. The state
government has successfully organised events and witnessed participation from across 30 districts of the state in
themes that included healthcare, agriculture and transport.

Bootcamps
E-Step is an initiative from Karnataka startup cell to empower students within
the state. It also caters to the needs of the growing startup community of
the state. E-Step is operational under the registered society KITS (Karnataka
Innovation and Technology Society) and acts as the single point of contact
and a facilitating body to promote the Karnataka Startup Ecosystem.
Under the E-Step initiative, various bootcamps and mentorship workshops
are conducted by various industry partners, startup founders, policy makers,
and technical experts to explain the basics of entrepreneurship to the
students.
Government of Karnataka conducted bootcamps for students of the
New Age Incubation Network (NAIN) colleges under the startup policy of
Karnataka. This was done to foster a sense of entrepreneurship amongst
students.

A total of 30 BOOTCAMPS were

conducted, out of which, 27 HAD
PARTICIPATION of MORE THAN 100
STUDENTS and were conducted for
more than eight hours.

Under the first phase of E-Step, day long bootcamps were organised in 30 New Age Incubation Network
Institutions across 19 OUT OF 30 DISTRICTS OF THE STATE. The bootcamps focused on the following aspects of
entrepreneurship.

TRAININGS FOR
EXPLAINING THE STEPS TO TAKE
TECHNOLOGIES --
CHALLENGES AN WHILE PITCHING
MAKING THE STUDENTS
ENTREPRENEUR IDEAS TO
MORE RELEVANT TO
UNDERTAKES INVESTORS
TODAY’S ECOSYSTEM

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 131

Angel Investment Workshops

Karnataka provided the following benefits to both registered angel investors and Startups from the Startup Karnataka
portal –
• Connection between investors and startups in the state
• Free entry to all startup related events of the state
The state, in association with the Internet and Mobile Association of India, conducted Mobile 10x event. The event
consisted of interactive sessions such as fund raising, investment and pitching sessions, among others. The
following partners organized 5 pitch days and various interactive sessions at Mobile 10x –
• Rebright Partners
• Hyderabad Angels
• Indian Angel Network
• Let’s Venture
30+ startups participated in the Mobile 10x event.

132 STARTUP INDIA | COMPENDIUM OF BEST PRACTICES

National and International Events

• The Department of IT & BT, Government of Karnataka conducted a Virtual Global Hackathon in collaboration with
Global Innovation Alliance Partners and Startup Innovation Hubs from across the globe.
• The 2018-19 theme of the hackathon was ‘Innovation & Impact’. The mission of Bengaluru Tech Summit (BTS) Global
Hackathon was to create technology solutions and initiatives that contribute to the social cause and address the
needs and challenges faced by humanity in the areas of healthcare, water, agriculture, transport and waste.
• The state, in association with the Internet and Mobile Association of India, conducted Mobile 10x event. The event
consisted of interactive sessions such as fund raising, investment and pitching sessions, amongst others. A total
of 30+ startups participated in the event

STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 133

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STARTUP INDIA | COMPENDIUM OF BEST PRACTICES 135
CONTACT US

www.startupindia.gov.in
[email protected]
1800-115-565