Seed Funding

Under certain specific circumstances, the Incubatee Start-up Company will be eligible for seed funding which will be combination of convertible debt and equity. A company desirous of getting seed fund may submit an application for seed fund on admission or any time during its tenure in IFTM-BIF. Sanction of seed fund will be decided based on the eligibility criteria as decided by IFTM-BIF. One of the criteria for approval of the seed fund will be to help the company reach a level of maturity in terms of product development or go-to-market stage.
Following broad guidelines will be followed for the seed fund:
i. In case the incubate company has already raised seed funding or is generating revenue, the valuation of the company will be assessed with the help of experts and investment will be done based on that valuation.
ii. Investment decision will be taken on case to case basis and will be subject to the approval of Investment Committee.
iii. There would be a separate guideline for terms for each of these investments.
iv. The maximum amount of investment per company would be Rs. 20 lakhs.
v. The seed investment will be offered only after 3 months to 6 months from the date of incubation of the Start-up. The offer and amount of investment will be made on case to case basis after the assessment of the Start-up.
vi. In case of equity investment, an incubatee will be valued between Rs. 1.5 crore uniformly.
vii. Maximum duration for redemption of equity would be 4 years.
IFTM-BIF will have sole discretion to sanction or reject an application for seed fund and the decision of IFTM-BIF in this regard shall be final. IFTM-BIF is not bound to give any reason in case an application for seed fund is rejected.
Purpose of Seed Fund
Seed fund will be provided for the promotion of incubator to the next phase of the journey. The following (not limited) may be the broad purposes to utilize the seed funds:
• Purchase of components/ tools/ equipments / consumables
• Procurement of raw materials
• Cost of machining and fabrication
• Registration fee
• Cost for validation/ testing
Though seed fund may be sanctioned at the time of approval of the proposal for admission, disbursement shall be subject to satisfaction of IFTM-BIF that suitable progress has been made.