ABSTRACT

MSME - Tamil Nadu Startup and Innovation Policy 2018-2023

(TANSIM) - Guidelines for Tamil Nadu Startup Seed Grant Fund
-Orders issued.
(TNSSGF)

MICRO, SMALL AND MEDIUM ENTERPRISES IAI DEPARTMENI

G.O.(Ms) No.49 Dated: 18.06.2020

g®6u6ir®62]fr tabdr® 2o5i
tFrTfrouTf\ Ou®LLb, eb6rf\ -4

Read :

1. G.O. (Ms). No.7, Micro, Small and Medium Enterprises (D2)

Department, dated 22.01.2019.

2. From the Additional Director, Entrepreneurship Development

and Innovation Institute - Tamil Nadu (EDII - Tamil Nadu)
letter No.431/ TANSIM EDII / 2019-3, dated 17.12.2019.

QLRDEEk
In the Government Order read above, the Government have
issued the Tamil Nadu Startup and Innovation Poliey 2018-2023. The
Entrepreneurship Development and Innovation Institute (EDII) has
been nominated as Nodal Ageney to implement the Policy. One of the
Policy interventions proposed in the Tamil Nadu Startup & Innovation
Policy for its implementation is to ensure channelling adequate
resources to strengthen Startup Ecosystem and to establish Tamil
Nadu Startup Seed Grant Fund (TNSSGF) with corpus of Rs.50 Crore
to support early stage Startups.

2. In accordance with the above Government Order, the

Principal Secretary / Director, Entrepreneurship Development and
Innovation Institute -Tamil Nadu in the reference second read above
has sent the draft guidelines for Tamil Nadu Startup Seed Grant Fund
(TNSSGF) for approval of Government to implement the Startup
Policy.

3. The Government after careful examination of the proposal of

the Entrepreneurship Development and Innovation Institute have

tljbHds. i
decided to accept and accordingly frame the following Guidelines for
Tamil Nadu Startup Seed Grant Fund (TNSSGF):-

GUIDELINES FOR
TAMIL NADu STARTUP SEED GRANT FUND
1. Introduction

Tamil Nadu Startup Seed Grant Fund (TNSSGF), hereafter

called as TANSEED, shall support early stage financing requirements
of the (a) Startups and (b) Incubators& Accelerators, in the form of
grants to fill the gap in fund requirement for research & innovations,
anything from mind to marketplace (which may also be patentable).
TANSEED would also provide funding for Idea-to-POC (Proof of
Concept) stages, which are pre-startup activities with the much
needed early stage financial assistance to be provided to deserving
ideas/ technologies. This grant would support prototyping and testing
of innovative ideas of early stage startups / students/ faculty/
individuals.

2. Grant Highlights

Normally, the seed funding shall be offered up to a maximum

of Rs.25 lakh or as deemed appropriate by the TANSEED Expert
Committee. In exceptional cases, for extraordinary projects, the
funding may go upto a maximum of Rs.50 Lakh, with the approval of
the TANSEED High Level Committee. Seed support upto Rs.10 Lakh
will be considered as a grant and matching grant is required to avail
any funds exceeding Rs.10 Lakh. TANSEED would cater to early stage
funding for indigenous ideas and technologies requiring up-scaling
and related work. The funds would be disbursed to the deserving
incubatees with proper due diligence upon intimation to Incubators.

3. Areas covered under the Grant

The Startups would be supported primarily on the following:

1, Procurement of inputs to develop a prototype or working
model to demonstrate the proposed technology solution and
equipment rental.
2. Hiring technical mentors to aid and assist in prototype
creation.
3. Manpower for product development. (Not more than 30% of
Grant).
4. Test Marketing
5. Testing, certification and trials.
6.Any other expenses deemed fit by the TANSEED Expert
Committee.
Following expenditures will not be supported by the grant
1. Remuneration of the founding team. [Founding team includes
anyone with beneficial ownership of more than loo/o during the
grant program]
2. Any administrative expenses such as office rent, daily travel
and conveyance, personal use equipment such as mobile
phones, laptop etc.
3. Repay any loans or investments made by the founding team or
any other person in the venture to date.
4. Pure research projects that intends to demonstrate scientific
principles/techniques etc.
5. Ideas with no intention of commercialization i.e. to convert into
marketable technology/ products/ services.
6. Innovations with serious ethical and safety risks deemed
in feasible by experts and have serious pollution and health
implications
7. Funding cannot be used to support student / faculty research
or any other academic research.

The total funding to a star[up shall not exceed Rs.50 Lakh

under all categories put together. The validity of the grant shall be 18
Months. The minimum gap between availing from one fund to
another shall be 18 months. However, on exceptional cases, when a
Start-Step / Startup has completed the milestones and has really
moved up they can be considered, provided the TANSEED Expert
Committee has sufficient evidence to believe that the startup is
eligible for the next round of fund.
For Example, if a Startstep/Startup has availed an initial grant
of Rs. 10 Lakh, they can apply again for further seed grant support
provided they raise a matching grant. The matching grant support
shall be upto a maximum of Rs 40 Lakh.

4. Eligibility Criteria
4.1. Start-Step I
1. Should be registered with TANSIM
2. Located in Tamil Nadu.

4.2. Startup
1. The entity should be a Startup registered with TANSIM and
STARTUP INDIA. It shall be located and headquartered in Tamil
Nadu.
2. The entity should be registered as a Private Limited Company
(under Companies Act 2013), or a Limited Liability Partnership
(Under Limited Liability Partnership Act 2008) or a registered
Partnership firm (under Partnership Act 1932).
3. The average profit of the entity (as per income tax return) for
the last 3 years (or lesser in case it's a newly registered entity)
shall be less than Rs.5 Lakh.
 4. Working towards innovation, development or improvement of
products or processes with a high potential of employment
generation, social impact or wealth creation.
5. The entity should not have been formed by splitting up,
reconstruction of a business already in existence or as a
Subsidiary/Joint Venture/Associate of another Company.
6. The startup should have cleared all / not have any other
pending dues with any of the Government agencies and shall
not be blacklisted by any Government agency in India.
7. The applicant may be incubated in an incubator for at least six
months at the time of application.
8. Applicant has to be an Indian start-up. This support is not
meant for Indian Subsidiaries of MNCs/Foreign Companies.
Persons holding Overseas Citizenship of India (OCI) and
Persons of Indian Origin (PIO) would be considered as Indian
citizens for the purpose of this scheme. The shareholding by
Indian promoters in the incubated Startup should be at least
510/o.
9. The Seed Grant is not generally given for service Startups
working in Trade and Commerce.
10. The seed fund shall be funding the development of the
prototype or a product which is market ready / of small level
pilot production only and shall not be for regular research
which any University or College can foster.
Overall 5% of the total funds shall be earmarked for prototype
development projects in pre incubation stage. The maximum seed
grant for such pro].ects will be Rupees One lakh, .

5. Application Process
1. TANSIM will call for proposals quarterly (Fiscal Calendar).
2. The Call for Proposals is advertised through TANSIM Website
and other digital platforms (Official Handles) and explore all`
possible means of reaching to the right applicant.
3. The Call for Proposals is typically open for a period of 15 days.
4. The applicant needs to submit an online application for funding
by registering and logging on the TANSIM website. A profile
will be created with a Unique Identity Number (UID), where
the applicant can submit the seed application and track it.
5. A portal shall be launched for startups to file their grant
applications. In the meantime, the applications shall be filed
manually (5 copies) to TANSIM.
6. Applicants are advised to fill-up and submit their applications
early before the due date, without waiting for the last date, in
order to avoid any last minute contingencies.
7. Any request for changes in the proposal once submitted will
not be encouraged.
8. Applicants will be given time to present their proposal and
there will be a session for Question & Answer.
6. Application Format
The applications may be submitted in the prescribed format as
mentioned in ANNEXURE 1 to this order.

7. Documents to be submitted
1. Residence and ID proof - any document provided by the
Government.
2. Letter of acceptance or MoU with incubator/knowledge
partner.
3. Any other due diligence documents requested on case to
case basis (Refer Annexure Ill to this Order).

8. TANSEED Eligibility Screening

A team would be nominated under TANSIM, including external
experts, in order to screen the applications. The applications received
by TANSIM with the recommendations of incubators will first be
shortlisted based on the criteria mentioned in the following pages by
the Screening team. For Grants of less than Rs. 1 Lakh, the
applicants win be called for a pitch presentation in the presence of
domain expert(s) as jury and then their application may be submitted
to Mission Director, TANSIM for clearance.

9. TANSEED Expert Committee

For recommending the applications requiring Seed/Matching
Grant support of above Rs.1 Lakh and upto Rs.25 Lakhs, a TANSEED
Expert Committee will be setup by Mission Director, TANSIM.
The Composition of TANSEED Expert Committee would be as follows:
1. Mission Director, TANSIM
2. Domain Experts
3. Funding Expert
4. Nominee from Finance department
5. Incubator Head
6. Successful Entrepreneur(s)
If any of the Committee members have conflict of interest or
any association with the applicant/incubator, they shall not evaluate
the application. The Committee members may decide the
Chairperson.
10. TANSEED High Level Committee
• Applications requiring a Seed/Matching Grant Support upto
Rs.25 Lakh will be evaluated by the TANSEED Expert
Committee.
• Beyond Rs.25 Lakh, the applications will be evaluated by the
TANSEED High Level Committee, which comprises of the
following Officers:
i) Secretary to Government, Finance Department or his
nominee,
 ii) Secretary to Government, MSME Department and
iii) Mission Director, TANSIM, as Convener.
This Committee shall meet twice a year.

11. TANSEED Committee Requirements

• The members are expected to sign a Non-Disclosure
Agreement and a Non-Conflict Agreement. If there are any
conflicts of interest with any of Start-Steps/Startups, .the
members may inform the Chairperson.
• Decisions shall be based on voting by the members. In case
a tie, the Chairperson shall use his/her vote. The decision
the Committee in all respects shall be final.
• Calendar for every quarter will be announced on TANSIM
website.

12. Methodology of Selection

An application made available online shall be filled and
submitted, along with a presentation deck and supporting
documents, within the prescribed date. This will be followed by
shortlisting through evaluations by the panel and presentations
before the TANSEED Expert/High Level Committee.

13. Modalities
13.1. Shortlisting Process
The applications received by TANSIM, with the recommendation
of incubators, will first be screened based on the following criteria.

13.2. Shortlisting Criteria

1. The startup must be working on an innovative product or
technology and not involved in pure service delivery
2. Problem Identification and impact of the solution.
3. Potential forscaling up and employment creation.
4. Commitment, expertise & pedigree of the team.
5. The depth of research done on the identified problem.
6. If the startup has any dues with TANSIM, that needs to be
cleared before availing the fund.
7. Business plan and usage of Fund - clear deliverables and
outcomes have to be mentioned by startups in their application.
The shortlisting will be based on the quality of the business
plan provided. Product-market fit, early customer feedback,
technological capability of startup team to execute the project
are some of the factors considered for shortlisting.
8. Funds received by the applicant like grants, prize money and
other financial modes will also be taken into consideration
before sanction. Priority will be given to those startups who
have not received any fund.
9. The shortlisted Startups will be asked to submit a 2-Minute
video introduction of the product along with the pitch deck.
10. The shortlisted Startups will then pitch to the TANSEED Expert
/ High Level Committee, who will recommend if the Start-Step/
Startups are worth funding.
11. In exceptional cases, the presentation over Video Conference,
skype, zoom, etc. are also allowed. (This must be notified by
E-mail at least 1 week prior to TANSEED Committee Meet).

13.3. Selection Process

The Committee will examine the proposal, in depth, and based
on the quality of the proposal and the presentation, will decide on the
amount of seed fund to be sanctioned for the Startups. The
Committee may also suggest the pattern of utilization, which may
differ from the plan prepared by the startup. The recommendation of
the Committee will be finalized normally within 3 working days of the
presentation day for Sanction of Seed grant. The recommendations of
the Expert Committee will be submitted to the Mission Director,
TANSIM for approval for overall grant value upto Rs.25.00 lakh. For
grants beyond Rs.25.00 Iakh, it shall be forwarded to the High Level
Committee. Startups, thus sanctioned, will be notified through email.
Upon signing of MoU between TANSIM, Incubator/Accelerator and
Startup, the fund will be released within 7-10 working days.

13.4. Shortlist Announcement

Startups shortlisted for seed support presentation will be
notified through email and portal at least two weeks before the
scheduled day of meeting with the TANSEED Expert/High Level
Committee. Applicants who were rejected will also be notified through
E-mail. They may re-apply with an improved application in the next
round.

13.5. Participation Confirmation

The selected Startups are expected to confirm their
participation within 3 days by submitting the pitch deck and the
financial projections. The Committee will examine the proposal in
depth and based on the quality of the proposal & presentation will
make a decision. The Committee may also make recommendations
that shall be incorporated into the final proposal. Such
recommendations will be finalized normally within 3 working days of
the Committee Meet. The Startup shall submit the revised proposal
incorporating the suggestions, for the TANSEED Expert Committee.

13.6. Duration of the Seed Grant Usage

The Seed funding is for a maximum period of 24 months in
installments against agreed milestones. No request for extension
shall be entertained under any circumstance.
13.7. Support to Student Innovators
Start-Step 1 : At Idea stage no specific funding will be provided.
Start-Step 2: The potential idea that's validated and tested and
need to go to the next level of Proof-of-Concept (PoC). With clear
technology ob].ectives this could be a process/ product innovation
which has a significant impact or commercial potential. This early
stage may be supported for developing the prototype. Funding
shall be offered at this level from the TANSEED upto a maximum
of Rs.1 lakh as deemed appropriate.

13.7]1. SLipport For Student Start-steps

• Start-steps will be supported upto a maximum of Rs.1 lakh 5 %
of the allotment under TANSEED will be utilized for support to
Start-steps.
• In case of students, they should be enrolled and studying in
any of the College/ University within Tamil Nadu and should be
working on an innovative idea towards a workable prototype. A
` IVo 04/-ec[i-on Cerfi.fi.cate' from the Head of their institutions, on
the institutions' letter-head along with their application and the
commitment from the institutions that the project will be taken
to its logical conclusion by the student/concerned faculty.
• The applicant can be a single individual or a group. However,
the lead member will be the applicant and others can be co-
applicants, Financial support can be given only to the lead
applicant by name, and all team members have to concur to it,
• . The support/funds should be mainly for prototype development
work/proof-of-concept.
• Travel costs are based on actual and not exceeding 5% of the
approved project cost.
• Students pursuing long term research projects like doctoral
research pro].ects or similar projects will not be supported;
however student entrepreneurs will be eligible if they have the
right to commercially exploit the technology.
• The decision of Competent Authority will be final and binding
upon the stakeholders.

13.8. Fund Disbursement

• The fund disbursement is milestone based and is released in

installments over a maximum period of 2 years. Proposed
project duration cannot exceed 2 years.
• MoU will be signed between TANSIM, Startup and the
Incubator/Accelerator.

13.8.1. For Grants up to Rs. 10 Lakh

The first tranche shall be disbursed (50°/o of grant) after signing
the grant agreement along with the Terms of Reference and other
 requisite documentation. The terms of reference shall include the
final proposal incorporating recommendations of the Mission
Director, TANSIM.
The second tranche will be disbursed on submission of the
following:
1. Interim Project updates (milestones reached) submitted by the
core management team.
2. Demo of the product developed so far (if applicable)
3. Note on all deviations from the original plan & the reasons
thereof.
4. Fund Utilization certificate by an empanelled Chartered
Accountant in the format given by TANSIM along with the
supporting bank statement. The format shall highlight
deviations of over 10% from the given cost head.

13.8.2. For Matching Grants above Rs.10 Lakh

Disbursement is solely based on milestones set by TANSEED

Eiesr|/nH:tgai,:eevnet':Cs:gTnTnj:t::a:a:js.r:Leo;osedin4installments:
2. 2nd Installment: Completion of lst Milestone - 30%
3. 3rd Installment: Completion of 2nd Milestone - 30°/o
4. 4th Installment: Completion of project and submission of final
report - loo/o
The Final and Last installment shall be released after the
conclusion of the project and hence is in the nature
of reimbursement. At the discretion of the TANSEED Expert
Committee, grants may be terminated midway if the applicants fail to
accomplish milestones or show progress. Any unspent balance grant
remaining with the Startup/Incubator shall be returned to TANSIM
within 15 days, failing which Simple Interest will be levied.

13.8.3. For Matching Grants above Rs. 25 Lakh

The sanctioning authority will be the Mission Director, TANSIM
for all grants upto Rs.25 lakh. For grants above Rs.25 lakh, the
sanctioning authority shall be the High Level Committee. This
Committee shall sit twice in a year.

13.9. Mode of Payment

Payment will be through direct transfer in the name of the
start-up, upon intimation to the Incubator/Accelerator.

13.10. Documents for First Tranche

The Startups with the grant sanctioned~are expected to submit
a detailed fund utilisation plan along with project milestones. The
fund utilization plan for the first tranche should be clearly stated
along with the interim outcomes expected to be achieved.
 10

The list of documents to be submitted are as follows:

1. Address ID proof of Founder/ Co-Founders signing the
agreement
2. Personal Guarantee of the startup
3. Scanned copy of passbook front page of the company/entity
account.
4. Stamp paper worth Rs.100 in name of the company/entity.

Agreement may be signed by one of the founders. Rental

dues and loan interest dues (if any) need to be cleared before the
release of the seed grant. After verifying these details, agreement
with the Startup will be executed. The fund will be released within
7 days of signing the agreement.

The Startups are expected to submit the interim progress

update and utilisation certificate to initiate the release of the
second tranche of fund. The progress will be reviewed by a
Committee of experts before the balance amount is released.
Wherever necessary, the Startup will be asked to present a demo.
As documents for Second Tranche,apart from the interim progress
report and the audited Utilization Certificate, the Startup is also
expected to detail out the plan for the balance amount and the
expected outcome of the pro].ect.

13.11. Matching Grant:

Based on the merits and fund requirement for
implementation of the startup project, startups shall be provided
grants above Rs. 10 Iakh as matching grant. The Startups should
have demonstrated the pro].ect/PoC elsewhere in any open
Innovation Challenge/Competition, Government or Private, and
received grants from any Investor(s)/Firm(s) for the pro].ect.
Funds equal to such grant will be sanctioned as matching grant
under TANSEED. The overall grant sanction under TANSEED shall
not exceed Rs.50 lakh.

13.12. Post Payment Audits

1. At the discretion of the Committee, the Committee can appoint
an internal or external auditor to conduct an audit of the
Startup.
2. The Start-up is requested to retain all documents, bills,
quotations, and contracts for a period of 3 years from the last
disbursement.
3.The grant shall become refundable in case any
misrepresentation is observed and unexplained.
 11

13.13. Project Completion Report

Startups are expected to submit the final report and audited
utilization certificate at the end of the project duration. The
subsequent support for the Startup will be subject to the submission
of report and utilization certificate.

13.14. Futile Projects

Not all Startups are expected t`o get market validation and take
off. Projects might fail due to technical reasons or because the
customer failed to adopt the idea or product. For failed ventures, the
entrepreneur is expected to share his/her learnings and the reasons
for failure in the report and submit this along with the fund utilization
certificate by an empanelled Chartered Accountant for the amount
disbursed.

13.15. Applying Again

The Startups with a previously failed venture could get seed
grant for a new idea or pro].ect after one year of rejection. There will
be a seed credit score which will be maintained for the Startups who
avail the seed grant. Each failure will affect the score and Startups
below certain limit can't avail the seed grant. The project report
submitted by the innovator which details out the efforts taken and
the reasons for failure will be thoroughly reviewed along with and the
audited utilization certificate and if these are found satisfactory, the
innovator may be considered again for the grant.

14. Incubators
Incubators provide Startups with necessary infrastructure and
other facilities to nurture their ideas to become a reality to reach the
market through various support services and mechanism. These
institutions support the young fledgling firms (at the Start-step level)
which are yet to reach a Startup level to survive and develop.

14.1. TANSIM support

The TANSEED shall also provide a one-time revolving fund up
to a maximum of Rs.50 Iakh to academic institutional & private
Technology Business Incubators (TBI), provided the TBI mobilizes
fund in the ratio of 1:3 (TANSEED: TBIs) through industry or from its
own resources and the TBI is registered as a Section 8 company and
open up to the public.

14.2. Scope of the Fund

TANSEED will support Incubators to nurture and facilitate
Startups by providing access to infrastructure, training, funds,
mentoring as well as networking platforms. The fund supports
incubators in their nascent stage i.e. to their growth stage.
 12

Recognising the gap in fund support during early stage of a Startup,

this fund would address this fund requisite through the Incubators.

The primary intention of TANSEED is to provide Capital

assistance to Startups with innovative and worthy
ideas to graduate to growth stage where they will be able to attract
funds from investors like angel/Venture capitalists when they are
mature enough to raise bank loans or get support from State
sponsored NEED scheme or from commercial banks / financial
institutions.

14.3. Funding framework

Under Incubator TANSEED Fund, TANSIM will provide Grant-in-
aid assistance to selected Technology Business Incubators
(TBIs)provided the TBI fulfils the conditions stated in Para 14[1, Each
selected incubator will be granted up to Rs.50 Lakh for
implementation of TANSEED Fund. Each incubator can design a
selection process to screen and select Startups for equity and
operational funding through TANSEED Fund (e.g Accelerator program
or Direct investment). The provisions stated herein below deal with
the essential guiding principles of the initiative.

14.4. Duration of the Scheme

The Expert Committee will monitor the incubator till one cycle
of funding, including Incubator contribution, is completed or for 2
Years, whichever is later.
14.5. Selection
Well-established Incubation Centres (TBIs) will be shortlisted
based on the Key Performance Indicators (Kpls). Shortlisted
Incubation Centres will be required to make a presentation on their
scale-up plan before High Level Committee for final selection.
(Selection Matrix as per Annex VI to this order).
14.6. Eligibility criteria
1. Incubator should be Operational for the last three years, with
at least 10 resident Startups.
2. The Startups shall, preferably, be in thrust areas identified by
TANSIM.
3. The agency should be an autonomous organization or Society
registered under Tamil Nadu Societies Registration Act 1975, or
registered under the Companies Act, 2013.
4. Incubator should have in-house capacity to conduct events and
programmes and to incubate and mentor early stage Startups.
5. Incubator should have established IP & Tech Transfer
facilitat:ion services for Startups.
6. Incubator must have prior experience in management of early
stage funding schemes or other grants.
 13

7. Resolution from the apex body such as the Board of Directors,

the Board of Trustees etc. to allocate funds for a Grant
Program.
8. Certificate from a Chartered Accountant on the availability of
funds (Incubator's share of contribution) in un-encumbered
bank deposits and specifically allocated for Grant support.

14.7. Responsibilities
Each incubator shall identify Indian Startups (registered under
Companies Act, 2013 and having at least 51°/o shareholders as
Indian Citizens [does not include OCI or PIO] as the mandatory
requirement or under LLP) after duly putting in place a
selection mechanism based on the requirements.
2. Incubator can provide funding as loan/equity and equity linked
instruments, for equity investment and to cover such Startup
costs such as purchasing equipment and supplies, and hiring
employees.
The equity and equity linked instruments shall be held in the
name of the Incubator. A legally binding Agreement between
the Incubator and the Startup shall be entered into with the
terms for funding and investment.
4. There shall not be any conflict of interest of the Incubator in
any of the Startups selected for funding.
5. No Startup will receive Seed Funding support more than once
under the same scheme/programme or within the duration of
the grant.
6. Incubator can administer the TANSEED Incubator Seed Fund
either through an already existing Committee at the Incubator,
which makes decision regarding the equity / investment for the
Incubator or constitute a Committee, whose members would be
domain experts, to evaluate and review the investment
strategy and other project progress parameters.
7. The Incubator shall have the Additional Mission Director or in
his/her absence the Head of Funding Division of TANSIM as
nominee in their TANSEED Fund Committee.
8. Incubator shall clearly put in place the exit strategy and
incorporate appropriate provisions in the governing Agreement,
including the terms regarding default of payments, with the
Startup. One Board Observer position for the TANSIM nominee
shall be essential aspect of such Agreement.
9. Incubator shall be responsible for monitoring the progress of
the milestones and for providing all the reasonable hand
holding support to the Startup.
10. Incubator shall submit half yearly implementation review and
report to TANSIM on the TANSEED Fund implementation
including the Utilization Certificates (Including copies of Bills),
Statement of Accounts (SOA) and Project Progress of the
beneficiary Startups.
 14

11. No Management Fees is applicable for implementing the

TANSEED Fund to the Incubator.
12. On exit from the Startup as equity stakeholder, the Incubator
shall retain the net return on the investment for further
investments in Startups. The Incubator may restitute the
remaining profits, if any, on infrastructural development of the
incubator.
13. Every exit report shall specifically provide the disinvestment
summary. Review of Seed Fund implementation submitted to
the TANSEED Fund Committee shall accordingly recommend
further implementation strategies including financial and non-
financial revisions in consultation with the Incubators.
14. In case of abandonment of pro].ect by beneficiaries, Incubatees
have to return the remaining funds.

14.8. Process of identifying the Incubator

The Incubators interested to avail TANSEED support under this
scheme may visit the TANSIM website and submit their application
online. Necessary documents can also be uploaded online.

The proposals would be evaluated based on merit by the High

Level Committee duly constituted for this purpose. The selected
applicants will be required to enter into a Memorandum of
Understanding (as per Annex IV to this order) with TANSIM and sign
a Bond.

14.9. IP ownership
The IP ownership and rights to technology commercialization
rests with the innovator and TANSIM. The Incubator has no right to
claim ownership in the IP.

14.10. RTI
All the details with respect to funding of Startups and also
admin funds are subject to scrutiny. Incubators' will be responsible
for dealing with RTI queries, if any.

14.11. Re-Application
The Incubators, whose applications were rejected in one round,
may re-apply again after a period of One Year.

14.12. Accounting and utilization of TANSEED Grant

• T`he Incubator is required to raise seed support through Non-
Government sources (Non-government sources exclude
Central, State and local Governments.) matching 3-times the
grant-in-aid for seed support.
 15

• The Incubator shall open a separate bank account for the Seed
Grant including the matching grant raised by the incubator.
• TANSEED Grant will be released only after depositing of
matching Grant by the Incubator in the above Bank Account. If
the Incubator fails to raise the matching grant within 6 months
of administrative sanction of TANSEED Grant, the TANSEED
Grant Offer shall be treated as withdrawn.
• The amount collected against repaym`ents including. interest
generated, may be utilized as seed support for next round of
incubatees and not for any other actMty of the Incubator.
• At any point, if the incubator is found to have used the Grant
for the purposes other than what it has been intended for, then
TANSIM reserves the right to recall the entire Grant allotted
with Interest at the rate of 120/o per annum in a single
installment. If it is not repaid within 30 days of date of issue of
recall order, then penal interest at the rate of 2.5°/o per annum
will be levied.
• In case the Startups / Incubators misuse the grant/fail to
respond to the repeated communications by TANSIM, they will
be blacklisted so that they shall not avail any more
grants/support from TANSIM.
• The blacklist shall also be made available in the TANSIM
website and shared with other Government Agencies.
LIST OF ANNEXURES

ANNEXURE 1 TANSEED Application Format.

ANNEXURE 2 No Objection Certificate for Student /
Employee Innovators.
ANNEXURE 3 List of Documents to be submitted.
ANNEXURE 4 MoU between Incubator and TANSIM
ANNEXURE 5 Incubator Business Plan.
ANNEXURE 6 Incubator Selection Matrix.

4. This order issues with the concurrence of .Finance

Department vide its U.O. No.17822/Ind/2020, dated 10.06.2020.

(BY ORDER OF THE GOVERNOR)

Dr. K.GOPAL
PRINCIPAL SECRETARY TO GOVERNMENT [FAC]

TO
The Industries Commissioner and
Director of Industries and Commerce,
Thiru Vi Ka Industrial Estate,
Guindy, Chennai - 32.
 16

The Director,
Entrepreneurship Development and Innovation Institute-Tamil Nadu,
Chennai-32.
The Additional Chief Secretary to Government,
Finance Department, Chennai -9.
All Additional Chief Secretaries/ Principal Secretaries /
Secretaries to Government, Secretariat, Chennai - 9.
All Head of Departments
All District Collectors.

Copy to
The Chief Minister's Office, Chennai-9.
The Deputy Chief Minister's Office, Chennai-9.
The Special Personal Assistant to Minister (Rural Industries),
Chennai-9
The Private Secretary to Chief Secretary to Government, Chennai -9.
The Senior Private Secretary to Principal Secretary to
Government(FAC), Micro, Small and Medium Enterprises
Department, Chennai-9.
The Micro, Small and Medium Enterprises (Budget / OP) Department,
Chennai-9.
The Finance (Ind.) Department, Che[nnai-9 /
The Industries Department, Chennai -9.
The Public (SC) Department ., Chennai-9
Stock file / Spare copy.

// FORWARDED BY ORDER //

/_di_ed_,_i__
icTION OFFICER
 1

Annexure to G.O. f Ms). No.49, Micro, Small and Medium EnterDrjses /A

Department, dated 18.06[2020
ANNEXURE-I
TANSEED Application Form
A. General Information
Start-Step/Startup
Name of the Applicant
Registration Number (TANSIM)
Father's/Mother's Name
Gender M/F/T
Date of Birth/Age
Educational Qualification

Present Address
Permanent Address
Mobile Number

E-Mail Address

Aadhaar No.
PAN

Udyog Aadhaar No. (if applicable)

Name & Address of the Company
Date of Incorporation
Domain
Product(s)/Service/Process
Where incubated
Date from which incubated
Bank Name & Address
Name and address of Founders/ Co-Founders
a)
c)
Current Professional Experience / Employment /Student status of the
applicant: (No Objection Certificate from HOD/Organization is
requiredin case of Students& Employees-ANNEXuRE 11)
 2

Note: Section A, which contains the fields for entering General

Information will be common for all applicants. Section 8 will be different
for Start-Steps, Startups and Incubators.
 3

Technical & Financial Details (After Completing Section A)

For Startlsteps
1. Details of the Idea/Project
2. Pro].ect Cost / Financing plan
3.` Amount of Grant Sought
4. Has the applicant applied for financial assistance for the same/
similar project from any Other institution/ agency including prize
money. If so, details and status thereof.
5. Physical and Financial Pro].ections for next three years (separately
incremental growth) (Annex complete Business plan)
6. Projected milestones (Annex Bar Charts)
7. Market Assessment
a, Ma].or Customers -Target Sector -Survey
b. Market demand (Yearly and Total)
c. Marketability Prospects & Distribution Problems
d. Product Substitution, if any
e. Ma].or Competitors
8. Product Quality / Specjfjcation (If Applicable)
a. Specification of the product, I.S. or others
b. Have the products been tested?
c. Consumer acceptability report on the products
d. Details of Govt. regulations /directives in favour/ against
e. Testing of the Product/ Process/ Benchmarking, etc.
9. Status of the work already carried out as such: (Yes/No)
a. Prototype developed and tested :
b. Process demonstrated at Pilot scale
c. Patents Filed/Product Certification
d. Consumers/ users feedback received
10. Anticipated effluents waste and pollution problems and steps
envisaged for tackling the same
11. Safety considerations, if any
12. What are your ma].or inputs for the pro].ect?
13. Any restrictions/difficulties anticipated in implementation of the
 4

proposal (including primary risks facing I:his opportunity)

14. Any other point not covered by the above which you wish to
highlight, the special Advantages, which are in your favour.

Declaration:
I / we declare that the informat:ion given above is true and correct to the
best of my / our knowledge and belief. Nothing material has been
suppressed.
I/We riereby also certify that no financial liabilities are pending with
me/us on accord of financial support availed by me/us from other
Government Institutions / Agencies for my/our any other innovations.

I / we declare that the Start-step is not formed by splitting up,

reconstruction of a business already in existence or as a
Subsidiary/JV/Associate of another company.

place
Dated Signature
 5

For Startups (After Completing Section A)

1. Details of the Product/Innovation

2. Project Cost / Financing Plan (Grant/Loan)
3. Amount of Grant/Loan Sought :
4. Has the applicant received or applied for financial assistance fo+ the
same/ similar project from any Other institution/ agency including' prize
money. If so,details & status thereof.
5. Brief note on the distinct competitive advantage of the technology

(Max: 50 Words)
6. (Annex Complete Business plan)
7. Projected milestones (Annex Bar/Gantt/PERT Charts, etc)
8. Market Assessment
a) Customer Sector -Target
b) Market demand (Yearly and Total)
c) Marketability prospects & distribution problems
d) Product substitution, if any
e) How is demand fulfilled
f) Ma].or Competitors
9. Product Quality / Specification
a. Specification of the product, I.S. or others
b. Have the product(s) been tested to conform to the specification?
c. Consumer acceptability report on the products
d. Details of Govt. regulations /directives in favour/ against the
company /product
e. Testing of the Product/Innovation
10. Intellectual Property Rights, India/International Patents Filed: .(If Any)
i) Patents Granted
ii) Trademarks
iii) Other

11. Brief note on the IPRs likely to be developed and Targeted Market
12. Ma].or R&D achievements/ Product Certifications:
 13.Capital structure
i) Authorised capital
ii) Issued capital
iii) Paid up capital

iv)Reserves, if any
v) Details of loans
if any (Separately short & long term loans)
vi)Current Assets
vii) Liabilities(If Any) :

viii)Brief details & value of the Fixed Assets:

ix)Financials including previous three years,Turnover& Net Profit/
Income (if applicable)
14.Manpower employed (as on date and pro].ected numbers)
a) Scientific & Technical
b) Sales & Marketing
c) Administrative
d) Others
e) External Consultants / Experts, if any
15. Status of the work already carried out as such: (Yes/No)
a) Prototype developed and tested :
b) Process demonstrated at Pilot scale
c) Patents filed
d) Consumers/ users feedback received
Any other information on work already carried-out (Enclose
documentary proof of work done by way of photographs, video
clips, forward orders etc[)
16. Any work done on development of prototype / pilot plant
a) Number of prototypes produced/ Capacity of the pilot plant
b) Duration of investigations
c) Design data collected
d) Whether the pilot plant is still in operation. If so, could it be
demonstrated?
 7

17. In the light of trends of research in this line, Does the proposal made,
has reasonable Chances of standing test of time, say 5-10 Years? Give

justification
18. Anticipated effluents waste and pollution problems and steps
envisaged for tackling the same
19. Environment and Safety considerations of the Product.
20. Assumptions for the financial projections
a) Cost of the project and sources of finance
b) Projected cash flow during the developmental Period
c) Pro].ected profitability statement
d) Break-even point
e) Financial analysis, if any
f) Attach Feasibility Project Report
21. Any restrictions difficulties anticipated in the implementation of the

proposal (including primary risks facing this opportunity)

22. Details of Sources of Finance for Balance Funds:
a)Banks/Financial Institutions:
b)Venture Capitalists:
c)Name and address of co-investors:
d) Activities Monitor-able milestones (basis: Scope and Support)
e) Duration (months) Budget required (Rs. in lakh)
f)Have you approached any other organization/agency for financial
support for the current activity? Please give details etc.
23. Any awards or recognition related to the innovation:
24.Details of Mentors/Guide, if any:
25.Any other information that you wish to share with us to help us in

].udging your application.

 8

Declaration:

I/We declare that all the statements made in this application are true,
complete and correct to the best of my/our knowledge and belief.

In the event of any information, found false or incorrect, my/our

candidature will stand cancelled and all my claims will be forfeited.

I/We hereby also certify that no loan or any other financial liabilities are
pending with me/us on accord of financial support availed by me/us from
other Government Institutions / Agencies for my/our any other
innovations.

I / we declare that the Startup is not formed by splitting up,

reconstruction of a business already in existence or as a
Subsidiary/JV/Associate of another company.

Place :
Date : (Signature of the applicant)

RECOMMENDATIONS OF THE FORWARDING INCUBATOR

Place : Signature of the Head

 9

For Incubators (TBIs)

1. Name of the private Institution /College / Organization:

a. Address :
b. Telephone :
c. Email

d. Fax
e. Website
2. Year of Establishment:
3. Numberof Employees:
4. Track record
a) List top five R&D pro].ects and consultancy ongoing/completed, if
any (Last 3years).
Amount Amount Duration
Name of Sponsoring Sanctioned Released (in years) Awards
the agency (Rs. in (Its. in (if any)
project Lakh) Lakh)
From TO

b) Experience of host institution in entrepreneurship, Start-up

facilitation & innovation, if any (last 3 years)
c) List of Startups Registered with the Incubator with details.
d) List of Graduated Startups with details

Name of Founders/ Domain Contact Register Duration of Year of

the CO Details ed Incubation (in Graduation/
Startup Founders (PhoneEmail-ID,URL) Address years) Exit

From TO
 10

5. Number of patents, if any (Last 3 Years)

a' Filed:
b. Granted=
Incubator Type - Public/Private/ PPP/Section 8 Company
Are you partnering with an educational/ research institute/ industry?
If yes, then provide number of educational/ research
institutes/industries:
List the names of the educational/ research institutes/ industry: (To
be Attached)
10. Investment commitment and Track Record (Rs ...... Lakh):
11. Select the area of specialization (R&D Strength):
• Automobile & Sustainable Transportation Technologies
• Biotechnology
• Communication technology (publishing, printing, media, design,
etc.)
• Medical devices &implants
• Nanotechnology
• Water & Environmental Technologies
• Smart cities Technologies
• Smart/Advanced manufacturing Technologies
• Life Sciences
a . Renewable Energy
• Others (please specify)
12. Available Workspace (in sq.ft.):
13. Total Capacity of the Incubator (No. of Seats) :
14. Total Manpower Available for O&M of the incubator:
15. Do you conduct in-house events and programs supporting Startups?
If yes, please provide details
16. Details of Existing Resources of the Incubator that are available to
the incubatees.
17. Whether supported by other Central/State Government pro].ects?
If yes, please provide details.
Note: The Application Form shall be annexed with a Complete Business
Plan.
 11

ANNEXURE - 11

No Objection Certificate for the Student /Employee Innovators

The Student / Employee Innovator

is studying /working in our Institute/Organization.„
`'..........."...,,..................................'..I.............-................I........'......................................

since ............. „.The institute/organization has no objection to the innovator

taking up the innovation work as proposed with financial support under
TANSEED. The institute laboratories will be made available on chargeable
basis to the innovator for executing his/her project/innovation.
The Institute/Organization will be responsible for final completion of

project in case the Innovator leaves the Institute/Organization without

completion of the project.

Competent authority Signature with Seal

12
 13

ANNEXURE Ill
List of documents to be submitted by the Company:
• Certificate of Incorporation/ Commencement of Business
• Complete Note on the founders' background and their strengths relevant
to the proposed venture
• Annual Reports of existing Company(ies) of the Group, if any
• Detailed Project Report
• Complete Business Plan
• Copy of the market studies, feasibility studies, analyses etc. done, if any
• Copy of the recent analyses of the industry prepared by investment
bankers, engineers, management consultants, accountants, or others,
including marketing studies, credit reports and other types of reports,
financial or otherwise, if any
• Chart indicating the pro].ect duration and implementation schedule with

pro].ected milestones
• In the case of existing company, brief information on Internal working,
Management Team and SWOT Analysis
• Copy of the marketing and other descriptive brochures regarding the
other Companies of the group
• Copy of the press releases and press clippings, if any of the Group
Companies
• Certificate to the effect that the company had obtained all the statutory
clearance for the project and product(s)
• Agreements (Investment, Disinvestment, undertakings etc. by the
company and promoters)
• Personal guarantee/ Bond of the Promoters (case to case basis)
14
 15

ANNEXURE IV

Memorandum of Understanding

This Agreement is made on this 2019

between

TAMIL NADU STARTUP AND INNOVATION MISSION

Chennai, TamilNadu
Hereinafter termed as TANSTM
AND

<INCUBATOR NAME>
<INCUBATOR ADDRESS>

Here.inaFtertermedasHOSTINSTITUTIO_N_
The Tamil Nadu Startup and Innovation Mission (TANSIM) and the
<Incubator Name><Incubator Address>(`Host Institution|, which is an
academic/technical/company implemented through a Special Purpose
Vehicle, <> (A Section 8 Company) (hereinafter called as `IC| with its
registered office at<Incubator Address>, hereby agree to enter in a MoU
On day Of 2019 sub].ect to the terms and conditions
stated in the MoU.
Whereas,
i) `TANSIM' is an implementing agency of Tamil Nadu Startup and
Innovation Policy 2018-23 of the Government of Tamil Nadu.
ii) The Host Institution/Organization is a recognized < Type > under <
Act Name>.

Objectives:
i) The role of TANSIM is to promote a culture of innovation and
entrepreneurship in Tamil Nadu and that of the `TANSIM' is to make
Tamil Nadu as a Global Innovation Hub. TANSIM through the Tamil
Nadu Startup Seed Grant Fund (TNSSGF), shall provide revolving
fund up to a maximum of Rs.50 lakh to academic institutional &

private Technology Business Incubators (TBI) to ehcourage

 16

Entrepreneurship Development and Startup Support from Incubation

to Graduation/Exit.
ii) The role of the Host Institution/Organization is to provide pre-
incubation and incubation facilities which include physical capital,
human capital, technical/legal/financial facilities, etc., as necessary
and to provide funding as loan/equity and equity linked instruments,
received as TANSEED Revolving Fund from TANSIM.

Terms and Conditions:

1.0 Funding
1.1 The Incubator would be provided a total financial support in the form
of Grant (Hereinafter termed as TANSEED Revolving Grant) of
Rs.50 Lakh from the date of signing of agreement which would be
exclusively spent on the specified purpose for which it has been
sanctioned within the stipulated time.
1.2 The Incubator is required to raise seed support through Non-
Government sources (Non-government sources exclude Central,
State and Local Governments.) matching 3-times the Grant for seed
Support.
1.3 The Incubator shall open a separate bank account for the Seed Grant
including the matching grant raised by the incubator.
1.4 TANSEED Revolving Grant will be released only after depositing of
matching Grant by the Incubator in the above Bank Account. If the
Incubator fails to raise the matching grant within 6 months of
administrative sanction of TANSEED Revolving Grant, the TANSEED
Revolving Grant Offer shall be treated as withdrawn.
1.5 The Incubator win be required to submit Utilisation Certificates (UCs)

(Incl. Copies of Bills) of the grant at the end of each financial year as
well as at the time of seeking further installments of the grant, if
any-

1.6 Any unspent balance amount sanctioned and the amount collected
against repayments including interest generated, may be utilized as
 17

seed support for next round of incubatees and not for any other
activity of the Incubator.
1.7 TANSIM reserves the right to terminate support to the pro].ect at any
stage, if it is convinced that the grant is not being utilized properly or
that appropriate progress in the project work is not being made.
TANSIM recalls the Grant allotted with a Simple Interest of 12% in a
single installment. If it is not repaid within 30 days of date of issue of
recall order, then penal interest will be added at 2.5%.

2.0 Obligations of Incubator=

2,1 The Incubator shall identify Indian Startups (registered under
Companies Act, 2013 and having at least 51% shareholders as
Indian Citizens [does not include OCI or PIO] as the mandatory
requirement or under LLP) after duly putting in place a ;election
mechanism based on the requirements.
2.2 Evolve a transparent system for selection of incubatees in line with
area of specialization chosen. The incubatees would be admitted
subject to fulfilling the admission criteria and the IC would enter
into an appropriate agreement with the incubatees within a defined

period of time.
2.3 The Incubator shall provide funding as loan/equity and equity linked
instruments, for equity investment and to cover such startup costs
such as purchasing equipment and supplies, and hiring employees.
The equity and equity linked instruments shall be held in the name
of the Incubator and shall not exceed 5%.
2.4 The Incubator shall provide high quality assistance and guidance to
start-ups such as legal, accounting, business including industry
interaction, national and international linkages, etc.
2.5 There shall not be any conflict of interest of the Incubator in any of
the startups selected for funding.
2.6 No startup will receive Seed Funding support more than once under
the same scheme/programme or within the duration of the grant.
 18

2.7 The Incubator shall administer the TANSEED Incubator Seed Fund ,
either through an already existing Committee at the Incubator,
which makes decision regarding the equity / investment for the
Incubator. Alternatively, it would constitute a committee, whose
members would be domain experts, to evaluate and review the
\

investment strategy and other pro].ect progress parameters. .

2.8 The Incubator shall have Additional Mission Director, TANSIM or in
his/her absence the Head of Funding Division of TANSIM as a
member of the TANSEED Fund Committee.
2.9 The Incubator shall clearly put in place the exit strategy and
incorporate appropriate provisions in the governing Agreement,
including the terms regarding default of payments, with the Startup.
One Board observer position for the TANSIM nominee shall be
essential aspect of such Agreement.
2.10 0n exit from the startup as equity stakeholder, the Incubator shall
retain the net return on the investment for further investments in
startups. The Incubator may restitute the remaining profits, if any,
on infrastructural development of the incubator.
2.11 Every exit report shall specifically provide the disinvestment
summary. Review of Seed Fund Implementation submitted to the
TANSEED Committee shall accordingly recommend further
implementation strategies including financial and non-financial
revisions in consultation with the Incubators.
2.12 In case of abandonment of pro].ect by beneficiaries, Incubatees have
to return the remaining funds and their innovations including the IP
to the incubator.

3.0 Monitoring:
3.1 The Expert Committee will monitor the incubator till one cycle of
funding, including Incubator contribution, is completed or for 2 Years,
whichever is later.
3.2 The operations of the Incubator will be reviewed on a quarterly basis
in person and monthly over Skype based on a comparison of the
 19

proposed budget plan versus the actual physical and financial

performance. It will also include inspection of audited annual
accounts.
3.3 Incubator shall submit half yearly implementation review and report
to TANSIM on the TANSEED Fund implementation including the
Utilization Certificates (Incl, Copies of Bills), Statement of Accounts

(SOA) and Pro].ect Progress of the beneficiary Start-ups,

3.4 The Incubator should ensure that TANSEED Revolving Grant and
Matching Fund raised should be utilized proportionately.
3.5 Concerned officers of TANSIM its authorized representatives may
visit the Incubator periodically for ascertaining the progress of work
and resolving any difficulties that might be encountered in the course
of implementation.

4.0 General Conditions:

The specialization of the Incubator shall be clearly defined.
4.2 The Incubator will have its own website, which should be updated on
continuous basis.
4.3 TANSIM will have no responsibility in case of any loss caused to life or

property due to accident, fire or any other reasons.

4.4 All the details with respect to funding of startups and also admin
funds are subject to scrutiny. Incubator will be responsible for dealing
with RTI queries, if any.
4.5 The IP ownership and rights to technology commercialization rests
with the innovator and TANSIM. The Incubator has no right to claim
ownership in the IP.
4.6 The MoU will be valid for 3 years from the date of signing[
4.7 The MoU can be modified or revised from time to time with mutual
consent of the parties.
4.8 Upon receipt of signed MoU, the following documents need to be
sent:
a) Registration certificate of the Incubator.
b) Proof of availability of at least 5,000 sq.ft built up space along
 20

with lease deed in favour of the Incubator (a registered lease

agreement for 10 years in the name of the registered Incubator
should be submitted).
c) Names of the Industries associated with the Incubator along
with their letter of intent.
d) Experience/Credentials of Full-time Managing Team (Board, CEO
and other officials)
e) Complete Business plan and Report of Registered and Graduated
Startups
f) List of key mentors along with their cvs.

Each of the undersigned signatories represent and warrant that

he/she is authorized to execute this arrangement on behalf of the party
for whom he/ she signs and that no further authority or execution by any
other person for such party is necessary

To be signed by Representative of To be signed by Representative

Incubator of TANSIM

Name Name

Date Date

Signature Signature

Witness Witness

2 2.
 21

ANNEXURE V
INCUBATOR
BUSINESS PLAN
A. Executive Summary

8. Incubation Strategy and Business Model

1. List focus areas / sectors for project (Annex. 11)
2. List organizational strengths
3. Provide a proposed PERT chart of operational programme year
wise for 3years
4. List infrastructure (incubation space, conference/meeting room,
cafeteria, lab space, furniture, computers, utilities etc) and
services (IT, technical, legal, financial) to be provided
5. Provide details of marketing strategy and support
6. Provide action plan to meet business support service
7. Outline mentoring, counseling and training efforts
8. Mention geographical region covered (if any)
9. Provide details of previous pro'ducts/innovations developed (if any)

C. Legal status of the entity and its governance policies

1. Legal status of the entity
2. Describe the composition of the Board of directors: government
representatives, policy makers, academicians, entrepreneurs,
industry, professionals, investors and consultants. Multi-
stakeholder board with adequate representation on a
permanent basis as well as available on consultation,
3. plans to appoint the CEO and management team to ensure smooth
running of the incubator.

D. Tabulate year wise composition (3years)

1. Number of Incubatees (individual/group) to be admitted
2. Number of Incubatees expected to be graduated year-wise
3. Number of Incubatees graduated -Active/Inactive
4. Number of New Products/Technologies Developed/Innovations to
be commercialized
5. Number of events (training
programs/workshops/seminar/conference) related to
entrepreneurship
 22

E. Selection and exit policy for incubatees- Provide selection criteria

of the Incubatee and the mechanism for the same. Also specify the
type of incubatee:
1. Local entrepreneurs
2. Start-up companies
3. Branch of Existing Firm
4. Spin-off from University or R&D Centre
5. Bottom of the Pyramid- Grass Root
and Inclusive Growth
6. Describe the Exit strategy:
1. Setting a maximum time limit of 3years
2. Incentives to exit
3. Non-performance of the incubatees

F. Incubatee Funding mechanism and Track record in Detail

Note: please give specific information in respect of each item rather

than a generalized account/write up.
 23

ANNEXURE VI
INCUBATOR
SELECTION MATRIX
The following factors will be considered in selecting the Applicant:
SI.No Element
1. Incubator Site and Support system
• Location & Incubation Space (sqft)
• Proximity to business centers
• Availability of Resources (library, computing & communication
facilities, conferencing facilities etc.)
• Sector & Area Focus (More points to underserved, backward
sectors and areas)
• The Incubator should be an autonomous organisation or society
registered under TN Societies Registration Act 1975, or
registered under the Companies Act, 2013.
2. Business Consulting
• Linkages to improve the efficacy
• Advisory and support services
• Number of incubatees to be admitted (Min. 10)
• Number of incubates graduated/expected to graduate
• Number of new products/technologies/innovations to be
commercialized
• Number of events related to entrepreneurship
3. Experience / Credentials of Full-time Managing Team (Board, CEO
and other officials), the Incubator Board composition with names
and background may be provided
4. Experience of the host institution in entrepreneurship startup
facilitation and innovation in last 3 years
5. ny other, Presentation and Discussion with TANSIM in line. with
he Programme Objective

Dr. K.GOPAL
PRINCIPAL SECRETARY TO GOVERNMENT [FAC]

I |Trur± OrJPN I I

OFFICER