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YUVA:Access to Funding and Incubation Support 12.1 Facilitating Incubation Centersfor Start-ups Incubation centres are crucial for nurturing promising Start-ups. They provide access to mentor:ingnetwork, market network, shared physical infrastructure etc. Creation of Physical Infrastructure generally requires large capital investments. Considering this, following incentives/financial assistance shall be provided to start-ups: a. Financial assistance for setting up of new incubators (both physical and virtual) and expanding State supported Incubators. 9 b. Reimburse cost of incubating a Start-up maximum up to Rs 2 Lakhs per incubatee to Government recognized private / state supported incubators. c. Fiscal incentive to Incubators @2% of the investment received by its incubatee from SEBI registered AIFs (Alternate Investment Funds) into Bihar based start-ups. d. The Government shall provide financial assistance to match the funding raised by Incubator(s) from Government of India and Multilateral donor agencies on 1:1 basis on same terms and conditions. 12.2 List of State Supported Host Institutes/Incubators The Start-up Support Unit (SSU) with approval of the SMIC, shall from time to time update the list of state support host institutes and State Sponsored incubators in Bihar Start-up portal. 12.3 Common Infrastructure for Start-ups Government shall facilitate creation of common infrastructure for Start-ups. The shared infrastructure shall include: a. Co-working spaces. b. Provide shared facilities like R&D labs, cubicles, conference rooms etc. c. Shared software and hardware like high-end printer, computers etc. d. Common testing labs and tool rooms. e. Shared services like legal, accounting, technology, patents, investment banking. f. Individual accommodation and hostel rooms g. Community events and promotional support for incubation and start-ups h. Common facilities Centers (warehouse, Storage, Quality Assurance labs) Common infrastructure spaces shall be established either by Government or through PPP mode. This support shall be available to Start-ups Free of Cost and on chargeable basis for specified periods as per norms decided by Bihar Start-up Fund Trust. 12.4 Apart from the incubation centres, a "Bihar Innovation Hub" will be set up, which shall provide all services of an incubator including shared workspaces, professional business advisory/consultancy; access to funding and also provide support at commercialization stage including networking and merger & acquisition, valuation advisory amongst others. This innovation hub shall be further expanded into virtual incubator to widespread its reach. 12.5 Funding Support to Start-ups Funding support shall be provided to Start-ups in various stages of its business cycle. Validation Stage: 10 c, 12.5.1 Seed Funding Support A Seed Grant of up to Rs 10 Lakhs per Start-up as interest free loan for 10 years shall be provided to start-ups. This financial assistance shall be released on achieving milestones/phases and performance parameters as defined in the rating system. The financial assistance may also be provided to start-ups for validation of idea, prototype development, assistance towards travelling costs and carrying out field/ market research/ skill training/ marketing and initial activities to setup a Start-up etc. The actual amount of funding shall be based on the assessment made by rating agency. The loan shall be returned after 10 years. Commercialization Stage: 12.5.2 Early Stage Funding Support a. Free of cost Valuation for Start-ups. b. Facilitate access to Angel Investors. c. A success fee @2% of investment shall be provided to start-ups for mobilizing investments from state registered angel investors towards early stage funding. d. Matching Support: A financial assistance up to an amount equal to the amount invested in start-ups by the Angel Groups and Category- I Alternate Investment Funds may be given as loan to the Start-up. The rate of interest and terms and conditions of the loan shall be notified by the SMIC from time to time. e. Assistance to enrol and participate for Acceleration Program: Assistance up to Rs. 3 Lakhs per Start-upto enrol and participate for National/ International recognized acceleration program. The fees/charges paid for attending the same will be considered eligible for getting assistance. 12.5.3 Scale-up Funding Support a. The SMIC may participate in SEBI registered AIFs (Alternate Investment Funds) and Venture Capital Funds. The Venture Capital Fund so created shall invest at least 50% (i.e. equal to twice the contribution made by trust in the VC Fund) in start-ups located in Bihar. b. SMIC shall facilitate listing and public issue of Start-ups in collaboration with National Level Stock Exchanges such as BSE/ NSE. Incentives/ provisions under Bihar Industrial Investment Promotion Policy in force will be available to start-ups. However, the incentive for the same component cannot be claimed from more than one scheme. 11 Efforts will be made to leverage relevant benefits available under various schemes of Government of India. All the incentives shall be availed based on categorization of start-ups through rating mechanism. ---- -- __ -J' 12.6 Zero Cost for filing patents - Domestic and Foreign Intellectual Property (IP) is an invaluable business tool for start-ups, or entrepreneurs, providing initial start to one's business. Investors weigh IPs heavily and create good value for venture. To encourage the registration of IPRs (Intellectual Property Right) by Start-ups and provide facilitation support for protection and commercialization of IPRs, Government shall: a. Bear all costs associated towards filing domestic patents. b. Provide additional financial assistance in form of reimbursement for awarded foreign patents towards filing fees. 12.7 Additional incentives to SC/ST /Women IDifferently- Abled Incentives listed below shall solely be applicable to start-ups which are fully owned by any one person of this category or a group of persons defined in this category. Efforts shall be made to identify persons belonging to the Scheduled Castes and Scheduled Tribe and promote entrepreneurship among them. 12.7.1 SMIC may set up Project Management Units to specifically handhold them in setting up their ventures. 12.7.2 Entreprcncurs under this category will avail additional grant / exemption /subsidy than the limit fixed under clause12.5.1 and 12.5.2 of this policy a. Woman Enterprise-additional 5% b. SC/ST-additional 15% c. Differently Abled -additional 15% 12.7.3Additionally, 22% of the total corpus for funding start-ups shall be reserved for SC/ST beneficiaries. . 12.7.4 Based upon the requirement, the BSFT may relax the eligibility criteria, as stated in clause 5, for certifying start-ups belonging to SC/STI women and differently abled.