NIDHI (National Initiative for Development and Harnessing Innovations), an umbrella program is pioneered by the Department of Science & Technology (DST), Government of India, for nurturing ideas and innovations (knowledge-based and technology-driven) into successful startups.
Need for NIDHI
The Indian startup ecosystem has seen a lot of activity in terms of growth of number of startups that emerged and also in terms of deals for funding that got closed and amount that were funded. Against this bright background, however, the challenge that the young student innovators face is to raise the initial funding for his/her startup. Having reached the stage where s/he has done the technology demonstration and has a working prototype, the innovator is now looking for preparing his business plan, product validation and launch of startup. Product development and validation is his/her major challenge at this stage.
Startup launch, product development and validation requires some investment part of the young innovator. The initial funds needed at this time usually comes from friends, family, Angel investors and HNI who would invest in a early stage startup.
However, when technology is untested and market is unsure making returns uncertain, the risk of investment is too high for conventional investors including the Venture Capitalists to pitch in. The funds required at this pre - incubation stage is not a very large fund by volume but it does certainly gives the startup and the young innovator a breather in this competitive space.
NIDHI, by design connects and strengthens all the links of the innovation chain from scouting to sustaining to securing to scaling to showcasing, because a chain is only as strong as its weakest link. The key stakeholders of NIDHI includes various departments and ministries of the central government, state governments, academic and R & D institutions, mentors, financial institutions, angel investors, venture capitalists, industry champions and private sectors.
Objectives
- To take forward student innovations in IEDC / NewGen IEDC programme to commercialization stage.
- To promote student startups.
- To accelerate the journey of idea to prototype by providing initial funding assistance.
Components of NIDHI
There are 8 components of NIDHI that support each stage of a budding startup from idea to market.They are as follows
NIDHI GCC - Grand Challenges and Competitions for scouting innovations
Objectives
- To find & nurture new and innovative solutions for major challenges being faced by the society that are viable and sustainable.
- To pickup ideas from untapped sources and convert them into startups.
- To generate better awareness about entrepreneurship amongst India’s masses and reach out to aspiring and existing entrepreneurs through active media outreach.
- To expand the pipeline of potential incubatees for all TBIs
- To provide structured mentoring, guidance, prototyping grants, and seed-funding for ideas applying for such programs.
- To build a vibrant startup ecosystem, by establishing a network between academia, financial institutions, industries and other institutions.
Who can apply? - The proposal for running a Scouting Program maybe submitted by a TBI with a minimum 3 years of program of national/regional scale of promoting entrepreneurship (including accelerator or entrepreneur development program).
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NIDHI - PRomoting and and accelerating Young and Aspiring Innovators and Startups (NIDHI-PRAYAS) - Support from Idea to Prototype
Targets and outcome
The program would target to facilitate and enable minimum 100 innovators annually across the country in translating their ideas into prototype through funding support to maximum 10 PRAYAS Centres (PC) in the country. It aims to support innovators to build prototypes of their ideas by providing a grant up to Rs.10 lakhs and an access to Fabrication Laboratory (Fab Lab). PRAYAS was launched on 2nd September, 2016.
Eligibility for Submission of a Proposal of PC
- STEPs/TBIs promoted by Government of India are eligible to apply under the PRAYAS Centers (PC).
- The proposal to be submitted by aSTEP / TBI and other institutions with a proven track record in promotion of technology based entrepreneurship. The STEP / TBI is supposed to have adequate expertise and infrastructure to support innovation scouting, screening, selection for funding support and monitoring of progress of development.
- The financial support for establishing a PC would be extended to a STEP/TBI, a not-for-profit legal entity registered as a society/trust/section 8 company. DST encourages a PC to collaborate with an industry, an academic institution and with other institutions of repute focusing on innovation, research, testing, validation, quality control , commercialization mentorship and start - up promotion.DST at present does not support for-profit incubators.
- The STEP/TBI should have been in existence for at least 3 years. This limit of time period will not apply to entities created by the central government or state governments.
- A pure R&D proposal for academic pursuits and industrial consultancy will not be eligible for support.
- The proposals which are not complete or do not meet eligibility criteria will not be considered.
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NIDHI-Entrepreneur In Residence (NIDHI-EIR)-Support system to reduce risk
Objectives
- To encourage graduating student to take to entrepreneurship by providing support as a fellowship.
- To provide a prestigious forum for deserving and budding entrepreneurs to pursue their ventures without any additional risks involved in technology based businesses.
- To create, nurture and strengthen a pipeline of entrepreneurs for incubators.
- To make pursuing entrepreneurship related to a technology business idea more attractive among options available career options.
- To enable creation of new start - ups by entrepreneurs and significant progress towards raising funding or investment.
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Startup-NIDHI
Through Innovation and Entrepreneurship Development Centres (IEDCs) in academic institutions; encouraging Students to promote start-ups
Objectives
- To take forward student innovations in IEDC /NewGen IEDC programme to commercialization stage
- To promote student startups
- To accelerate the journey of idea to prototype by providing initial funding assistance
Eligibility
Eligibility for funds disbursal
- Any project supported by IEDC / NewGen IEDC in the last five years, and
- Current student projects in an IEDC / NewGen IEDC,
- The projects have to be nominated by IEDC / NewGen IEDC;
- The start up should own the IP fully; the host institution should have transferred or have forgone their rights on the IP;
- The start up should have registered as a company/LLP
- No student would be a part of more than one team
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NIDHI-Technology Business Incubator(TBI)-Converting Innovations to start-ups
Objectives
- To create jobs, wealth and businesses aligning with national priorities.
- To promote new technology/knowledge/innovation base d startups.
- To provide a platform for speedy commercialization of technologies developed by the host institution or by any academic/technical/R&D institution or by an individual.
- To build a vibrant startup ecosystem, by establishing a network between academia, financial institutions, industries and other institutions.
- To provide cost effective, value added services to startups like mentoring, legal, financial, technical, intellectual property related services.
Eligibility
- The proposal is to be submitted by an Academic/Technical/R&D Institution (called Host Institute (HI)) and other institutions with a proven track record in promotion of technology based entrepreneurship.
- In case, the host institute is other than an academic institution, it should be a legal entity registered in India with the clear purpose and objective of promoting research,innovation and entrepreneurial ecosystem.
- The financial support for establishing a NIDHI-TBI would be extended to a not-for-profit legal entity registered as a society/trust/section 8 company. DST does not support for-profit incubators at present.
- The host institution should be in existence for at least 3 years. This will not apply to entities created by the central government or state governments.
- A pure R&D proposal for academic pursuits and industrial consultancy will not be eligible for support.
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NIDHI-Accelerator-Fast tracking a start-up through focused intervention
Objectives
- To fast track the growth of potential start ups through rigorous mentoring and networking support in a short span through existing TBIs
- To attract subject matter experts, mentors, and angel investors get associated with TBIs through the structured accelerator programs
- To build a vibrant startup ecosystem, by establishing a network between academia,financial institutions, industries and other institutions.
- To act as a hub for several incubators in the region, so that high-potential startups can be fast-tracked for increased exposure and validation
- Accelerators should employ a “fail fast” mentality: ideas or prototypes that are not getting traction should be abandoned (or modified) quickly, allowing founders to
redeploy resources to other projects or even new companies at a rapid pace.
Who can apply
The proposal for running an Accelerator Program may be submitted by a TBI having NSTEDB recognition and experience of running at least one program of national / regional scale of promoting entrepreneurship (including accelerator or entrepreneur development program). NSTEDB will consider support of up to 2 Accelerators every year (with a 2-9-month duration) for every TBI and support up to Rs 1.50 crores per year per TBI. Applicant TBI should specify Types of Accelerators that they propose to run at the time of applying. These Accelerators would coach, mentor and incubate all types of startups irrespective of product, sector, and stage of start-up. Priority would be given to Accelerators supporting innovative solutions for social impact.
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NIDHI-Seed Support System (NIDHI-SSS)-Providing early stage investment
Objective
To ensure timely availability of the seed support to the deserving incubatee startups within an incubator , thereby enabling them to take their venture to next level and facilitate towards their success in the market place. The scheme also enables the STEP/TBI to widen their pipeline of startups and also share the success of their startups which would also result in ensuring their long term operational sustainability.
Eligibility for TBI to apply for NIDHI-SSS
A fully Operational STEP/TBI with at least 5 start ups requiring seed support is eligible to apply to DST for seed support. Seed support is normally given to a DST funded STEP/TBIs, but other TBIs having not for profit legal status and hosted at public institutions would also be considered on a case to case basis.
Eligibility Conditions for Incubatee Start Ups for seed support
- Incubatee should be a registered company in India with minimum of three months of residency at the STEP/TBIs.
- Incubatee has to be an Indian start-up. This support is not meant for Indian Subsidiaries of MNCs/foreign companies. Persons holding Overseas Citizens of India (OCI), Persons of Indian Origin (PIO) would be considered as Indian citizens for the purpose of this scheme.
- The share holding by Indian promoters in the incubate start up should be at least 51%.
The component is the Seed Support System which provides up to One Crore rupees per start-up and is implemented through Technology Business Incubators.
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NIDHI Centres of Excellence (NIDHI-CoE)-A World class facility to help startups go global
Objectives
- To promote new technology/knowledge/innovation base d impact making startups.
- To provide cost effective, value added services to startups like mentoring, legal, financial, technical, intellectual property related services.
- To scale up existing/new activities targeted at seeding and supporting startups.
- To provide a platform for speedy commercialization of technologies developed by the host institution or by any academic/technical/R&D institution or by an individual.
- To build a vibrant startup ecosystem, by establishing a network between academia, financial institutions, industries and other institutions.
- To create jobs, wealth and business in alignment with national priorities.
Eligibility for Submission of a Proposal of NIDHI-CoE
- The proposal is to be submitted by an existing Incubator, which has been in existence for at least five years. The host institute is supposed to provide adequate expertise and infrastructure for scaling up of existing incubation activities.
- In non-academic institution, it should be a legal entity registered in India with the clear purpose and objective of promoting research, innovation and entrepreneurial ecosystem. It would be essential to have partnership with at least one academic institute of repute / technical institutes of repute/existing TBIs or STEPs/institutions/government bodies engaged in promotion of innovation and entrepreneurship.
- The financial support for establishing a NIDHI-CoE would be extended to a not-for-profit legal entity registered as a society/trust/section 8 company. DST requires a NIDHI-CoE to collaborate with an industry, an academic institution and with other institutions of repute focusing on innovation, research, commercialization and start-up promotion.DST, at present, does not support for-profit incubators.
- The host institution should be in existence for at least 8 years. This will not apply to entities created by the central government or state governments. DST would welcome partnership with the State Governments and other Departments of Central Government.
- The proposals which are not complete or do not prov ide information on 15 point of eligibility criteria (Sl No 8 in Proforma for Application), will not be considered.
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Source : The National Science & Technology Entrepreneurship Development Board (NSTEDB)