CONTENTS
Definition of a Start-up
.......................................................................................................................................................
3
ABOUT INCUBATION CENTER
....................................................................................................................................
3
VISION:
................................................................................................................................................................................
3
MISSION:
............................................................................................................................................................................
4
INCUBATION POLICY AND GUIDELINES
.................................................................................................................
4
SCOPE-
................................................................................................................................................................................
4
1. THRUST AREAS-
........................................................................................................................................................
4
2. ELIGIBILITY-
............................................................................................................................................................
5
2.1. For Pre-incubation-
...........................................................................................................................................
5
2.2. For Incubation and Virtual incubation-
...........................................................................................................
5
3. SELECTION CRITERIA-
...........................................................................................................................................
6
4. ADMISSION PROCEDURE
.......................................................................................................................................
7
5. SERVICES PROVIDED BY HPGIF
..........................................................................................................................
8
6. PERIOD OF INCUBATION-
......................................................................................................................................
8
6.1. Exit-
....................................................................................................................................................................
8
7. PERIODIC ASSESSMENT-
.......................................................................................................................................
9
8. INTELLECTUAL PROPERTY
.................................................................................................................................
10
9. SEED FUNDING-
.....................................................................................................................................................
11
10. CONSIDERATION-
........................................................................................................................................
11
11. AGREEMENTS-
..............................................................................................................................................
11
12. Credit
System……………………………………………………………………………………………………….12
POINT OF CONTACT
...................................................................................................................................................
143
Definition of a Start-up
As per the Department of Industrial Policy and Promotion, Ministry of Commerce and
Industry,
Government of India notification vide No. 236 dated 11 April 2018, an
entity shall be considered as a
Start-up when:
A. An entity is 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. Provided that an entity formed by
splitting up or reconstruction of an existing
business shall not be considered a
‘Start-up’; and
B. Turnover of the entity for any of the financial years since incorporation/
registration has not
exceeded INR 25 crores; and
C. Up to a period of seven years from the date of incorporation/registration, if it is
incorporated as
a private limited company (as defined in the Companies Act, 2013)
or registered as a partnership
firm (registered under section 59 of the
Partnership Act, 1932) or a limited liability partnership
(under the Limited
Liability Partnership Act, 2008) in India. In the case of Start-up in the
biotechnology sector, the period shall be upto ten years from the date of its
incorporation/
registration; and
ABOUT INCUBATION CENTER
Incubation center at Mahatma Gandhi Kashi Vidyapith, Varanasi (MGKVP) (hereinafter to be
referred
to as Har Prasad Gupt Incubation Foundation (HPGIF)) has been
incorporated under section 8 of the
Companies Act, 2013. HPGIF aids students,
alumni, and entrepreneurs from the university, its affiliated
colleges, as well as
institutes from all parts of the state, with their ideas and venture plans. HPGIF invite
innovative ideas and incubate, nurture, and hold their hands till they are able to
sustain and excel. An
entrepreneurial environment is provided with culture of
collaboration. HPGIF guide and help aspirants
to prepare the business plan and
help them present their startup on the appropriate platform so that
financial help
may be received from various government and private agencies/promoters.
VISION:
MGKVP has always adopted an inclusive approach in terms of knowledge dissemination in the
region, The Incubation centre is also poised to take the same route and provide a
credible and result oriented platform to Ideas and Venture Plans into great success,
originated by the Students, Educators, Entrepreneurs and Innovators from all walks of
life.
Kashi has always been known as hub of knowledge and has produced numerous renowned
scholars, Attaining the same ancient glory is the vision of the Incubation Centre.
MISSION:
Developing a culture of innovative thinking through demonstrated leadership in the
region.
Establishing HPGIF as a single point Start Up facilitator in the region.
Including NGOs and Societies to spread the cause amongst the youth.
Conducting periodical awareness program both online and offline.
INCUBATION POLICY AND GUIDELINES
HPGIF wishes to facilitate the creation of ideas and inventions that benefit society. The
scope of this
document is to define the policies and procedures for the
operational matters related to the HPGIF The
policy is subject to periodical
review and amendments. It will be the responsibility of the startups
admitted to
HPGIF to update themselves from time to time on amendments in Incubation policy and
procedures. HPGIF reserves the rights to make an exception of all or any of the
terms of policy for a
particular company or a promoter on a case-to-case basis.
SCOPE-
Applications are accepted online or in person for three major incubation programmes:
1) Pre-Incubation
2) Incubation
3) Virtual Incubation (for companies located
outside the MGKVP campus)
It covers the following aspects:
1. Thrust Areas
2. Eligibility
3. Selection criteria
4. Admission
procedure
5. Services provided by HPGIF
6. Period of Incubation
7.
Periodic assessment
8. Intellectual Property
9. Seed funding
10.
Consideration
11. Agreements
1. THRUST AREAS-
Different Sectors where incubation can be provided are among, but not limited to:
Economics, Banking and Finance
Renewable Energy Technology
Food Technology and Processing
Automation Technology
Material Engineering
Agriculture Sciences
Hotel Management and Tourism
Electrical and Electronics
Architecture
Computer Service
& Info-Tech
Water Resource Engineering and Management
Agro-Technology and Allied sectors
Social Work
Other
emerging areas or of social / national importance
2. ELIGIBILITY-
2.1. For Pre-incubation-
Only students, staffs, alumni, teachers or persons
associated through extension services of the
college desirous of availing
pre-incubation facilities has to apply by downloading “CRUX App”
from
www.crux.center or HPGIF official website (instruction are given there) in the
prescribed
format.
The pre-incubatee will be encouraged to contribute
business ideas through CRUX App to foster
the business idea. Once the business
idea is qualified to become a start-up it can opt for Incubation
or Virtual
Incubation services.
2.2. For Incubation and Virtual incubation-
Any one desirous of availing incubation
facilities has to incorporate as a private limited company
(as defined in the
Companies Act, 2013) or registered as a partnership firm (registered under
section
59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited
Liability Partnership Act, 2008) in India.
The applicant for
Incubation Program can be a start-up formed by an individual entrepreneur or
group
of entrepreneurs that have not incorporated under either of the legal entities. In such
cases
an application may be made in the names of all promoters/founders of the
start-up. However, if
selected for the Incubation Program, the promoters/founders
of the start-up must ensure that their
start-up is incorporated under either of the legal entities within a period of three
months from the
date of signing of the incubation agreement with the HPGIF.
2.2.1. Eligibility Criteria:
a. The incorporated start-up must not be older than 7
years from the date of registration/
company incorporation.
b. The incorporated start-up’s annual turnover (as
defined in the Companies Act, 2013) in any
preceding financial year must not exceed ₹ 100 crore.
c. The incorporated
start-up must not be formed by splitting up, or reconstruction, of a business
already in existence.
d. The incorporated start-ups must not be working as a
Proprietorship Company or Public
Limited Company.
e. The incorporated start-up must be working towards development
of innovative products/
processes/services and must have a scalable business model with a high potential of
employment generation or wealth creation.
Further,
The startup or innovation promoted by faculties of MGKVP shall be
governed by MGKVP and
approved by the HPGIF. Companies that are promoted by students of MGKVP shall not be
offered incubation if student is holding executive position, however companies
promoted by
students are eligible to apply for incubation, provided, the student
is not actively to be engaged
with the company beyond any engagement which may be
permitted by the Institute.
Regular teachers, professors, or staffs shall be offered incubation only upon
submission of 'No
Objection Certificate' from the competent authority of the
University.
Any company that is engaged or is proposing to be engaged in activities that are
in conflict with
the university, like imparting educational courses and/or
training programs including vocational
trainings or is planning to undertake such
activities during the incubation period shall require
explicit permission from the
university. Upon Institutes’ expressed approval, such companies
shall be
offered incubation.
3. SELECTION CRITERIA-
A start-up applying to the Incubation/Virtual Incubation Program at HPGIF will be
selected based
on following criteria:
The start-up must have developed a Proof-of-Concept (PoC), business framework,
business
plan and started using performance matrix through CRUX App;
The start-up must be working on an innovative idea/technology/product/service in
one of the
thrust areas;
The start-up that is willing to pursue the Incubation Program full time with no
other
concurrent commitments during incubation period;
The start-up that will preferably have a market ready prototype or PoC, or
willing to commit
to convert their idea into prototype during the tenure of the
Pre-incubation Program;
The start-up that has a strong business proposal, can confidently pitch to
investors and raise
funds, can be scaled up and become self-sustainable in 6
– 12 months’ time.
The start-up that offers technology enabled solutions with a social and
strategic impact.
The start-up that has a potential for large resource
generation and can create an impact value
and visibility for HPGIF.
The start-up that is incorporated under either
of the legal entities namely, private limited
company, partnership fir, limited liability partnership, will have to meet the following
additional criteria:
At least 51% of the start-up company should be
owned by Indian nationals (directly or
indirectly);
The start-up company has to ensure they have all required
intellectual property rights
(if applicable), including any technology license or patent assignment, to take the
technology ahead. The start-up company may also be required to ensure that they
will
have Freedom to Operate.
A start-up applying for the incubation program at HPGIF, it will not be
considered for
incubation if the proposed idea/ innovation/ technology or business
plan falls under
following conditions:
Start-ups proposing
products, services or processes which lack novelty with no or limited
incremental value;
Start-ups have been formed by splitting up or
reconstruction of a business already in
existence;
Start-ups with proposals that do not have potential for
commercialization, or Start-ups
proposing products, services or processes with no differentiation factor;
Start-ups with proposals those are not scalable and sustainable.
4. ADMISSION PROCEDURE
i. Submit an e-application form provided at official website or in person.
ii. Screening by HPGIF Committee (Proposals are examined with attention to
financial,
technical and social impact parameters)
iii. Qualified/ shortlisted Start-ups will
enter in an agreement with HPGIF
iv. Agreement executed to formally commence
incubation at HPGIF
5. SERVICES PROVIDED BY HPGIF
Following are the services the HPGIF provides:
Air-conditioned co-working space and facilities for operations
Legal Support
Secretarial Support
Intellectual Property
Protection Support
Technology Support
Accounting Support
Business Mentoring
High-Speed Internet
Cafeteria with complementary tea & coffee
Industry Connect
Investors Connect
Counselling & Guidance
6. PERIOD OF INCUBATION-
Pre-incubated startup will be permitted to stay in the incubator for a period of
maximum 3 months.
Additional two months extension may be granted at the sole
discretion of HPGIF depending upon
the performance of startup. Further, incubated
startup (physical or virtual) will be permitted to work
at HPGIF for a period of
maximum one year. Maximum two extensions may be granted for 6 months,
each at a
time, at the sole discretion of the HPGIF.
6.1. Exit-
An incubated startup may be asked to leave HPGIF under the following
circumstances:
i. Completion of period of incubation as per agreement (if not extended); or
ii.
Underperformance or non-viability of business proposition as decided by Internal Review
Committee (IRC) of HPGIF on case-to-case basis; or
iii. When the annual turnover of
the company exceeds INR 100 cr., or as stated by the
Government of India; or
iv. By mutual consent of both the parties; or
v.
Irresolvable promoter’s disputes as decided by HPGIF on a case-to-case basis; or
vi. Violation of the policy of MGKVP or HPGIF; or
vii. When the company enters in
an acquisition, merger or amalgamation or reorganization deal
resulting in a substantial change in the profile of the company, its promoters,
directors,
shareholders, products or business plan; or
viii. Change in promoters'/ founders' team without concurrence of HPGIF; or
ix. Any
other reason for which HPGIF or the university may find it necessary for an incubated
company to leave.
Notwithstanding anything written elsewhere, HPGIF’s
decision in connection with the exit of an
incubated company/startup shall be
final and shall not be disputed by any company/startup.
7. PERIODIC ASSESSMENT-
Periodic assessment would be carried out by IRC and vary
depending on the stage of incubation of
the startup. The incubated startup has to
submit a yearly audited statement of profit and loss account
and unaudited
quarterly statement about the activities. Notwithstanding, pre-incubated startup has
to submit quarterly performance review report. Additionally, incubatee may be
asked to provide
more frequent updates to HPGIF.
Some representative
criteria for evaluation are as follows:
(a) Ideation / Innovation stage
Background of entrepreneurs/ team
Concept development / Opportunity spotting
Product
Development
Market assessment / Competition analysis
First
level Business Planning / Business Modelling
Intellectual Property
Protection
Seed Funding
(b) Pre-Market Stage
PoC/ Prototyping
Product Development
and enhancement
Financial Health
Test marketing
Full scale business planning including production, sales and sourcing
(c)
Implementation Stage
Full scale Business Planning
Pitching
for Venture Funding
Scaling up operations
Large scale
commercialization
Team Formation
(d) Exit stage
Going National / Global
Exit options for
HPGIF
Full scale business Graduation
Post incubation
Survival
NOTE, Compliances as laid down by the Companies Act 2013 are binding on the
incubated
promoters. Incubated companies must submit a quarterly report on the
compliances adhered as laid
down in the Act.
FURTHER, non-compliance
of the same would make companies liable for penalty. Strict actions
may be taken
by the HPGIF are mentioned hereforth-
Non-adherence to the first warning of the non-compliance by the said Incubated
Company
will attract penalty of Rs. 1000 which will be billed with the facilities
due.
An action against the non-adherence to the second warning by the Incubated
Company will
make the incubatee ineligible to apply for any kind of fundings at
HPGIF.
An action against the non-adherence to the third warning in the form of notice
to vacate the
premises allotted to them and may result in end of incubation
services.
8. INTELLECTUAL PROPERTY
HPGIF helps start-ups with getting intellectual property
rights for their unique and innovative
product/services. In addition, HPGIF
encourage young and other aspiring entrepreneurs to bring in
new ideas to build
products and solutions using the latest and emerging technologies, file for patents,
trademark, and Copyright protection which will be jointly owned between the
entrepreneurs and
HPGIF.
9. SEED FUNDING-
9.1. HPGIF aids incubate(s) in getting seed fund/loan subject to the availability of
funds/ grants/
schemes meant for this purpose. Seed fund/loan may be sanctioned
only to the registered
companies and shall be based on merits of each company.
Further, admission to HPGIF shall
not automatically entitle the promoters to seed
fund/loan.
9.2. A promoter desirous of getting seed fund/loan may submit an application for seed
fund after
three months from the date of admission in HPGIF. Sanction of seed loan
will be decided
based on the eligibility criteria as decided by HPGIF. Information
regarding available seed
fund/loan will be provided only to the incubated
startups.
9.3. HPGIF will have sole discretion to sanction or reject an application for seed loan
and the
decision of HPGIF in this regard shall be final. HPGIF is not bound to
give any reason in case
an application for seed loan is rejected.
9.4. Though seed funding may be sanctioned at the time of approval of the proposal,
disbursement
shall be subject to satisfaction of IRC, that suitable progress has
been made.
9.5. Notwithstanding anything contrary contained herein the Seed fund sanction and
disbursal
shall be governed by governing council of HPGIF.
10. CONSIDERATION-
HPGIF will charge for infrastructure and services from
the incubated startups while pre-incubation
facilities are free of cost. This
payment would be in the form of service charges and equity share as per
following
details:
For physical incubation- Recommended fee of INR 3000 per incubate per
month for 2 seats
occupancy and 2 to 9.5 percent equity (subject to approval of governing council of HPGIF,
fee
may be reduced or waived-off based on status of applicant);
For Women entrepreneurs and Differently abled entrepreneurs- Recommended fee of
INR 2000
per incubate per month for 2 seats occupancy and 2 to 9.5 percent equity
(subject to approval of
governing council of HPGIF, fee may be reduced or
waived-off based on status of applicant);
For virtual incubation- Recommended fee of INR 5000 per incubate per month and 2
to 9.5
percent equity (subject to the approval of governing council of HPGIF, the
fee may be reduced or
waived-off based on the status of the applicant).
However, HPGIF may at its discretion revise the rates from time to time.
11. AGREEMENTS-
All incubate shall enter into following agreements as per decided
after discussion with governing
council of HPGIF:
i. Incubation agreement with HPGIF: Containing rules and other
incubation norms, consideration,
equity holding, etc. (Applicable to all except pre-incubated startups)
ii.
Seed-Fund/loan agreement with HPGIF: Containing rules of disbursement and repayment.
(Applicable to incubated startup/company availing seed-fund/loan)
iii. Technology
commercialization agreement with HPGIF: Applicable to incubate using
technology or IP developed by HPGIF.
iv. Rent agreement with HPGIF: Containing
discounted rental rates for the Incubation premises,
infrastructure and facilities. Each successful applicant, admitted as a resident member
of the
Incubator, will have to pay INR *** per square feet per month, as rent for
the office space. The
utilization charges will be subject to enhancement every two
(2) years.
v. Equity share agreement with HPGIF and/or any third party consultant: Containing the
terms and
conditions for the incubatee. The incubatee shall be required to share
the profits (minimum of 5%
of the profits after tax) and 6-8% of the equity, as
negotiated between incubatee and HPGIF or
third party consultant for proper
handholding of the Incubatee.
CREDIT SYSTEM
HPGIF is not only focusses on StartUps and StartUp eco system,
HPGIF realizes its wider responsibility
towards employment and employability.
HPGIF is introducing a credit system which will enhance the critical thinking and
employability of the
students of MGKVP.
Maximum 120 Credits can be earned
120 Credits are worth a degree
course
Every activity is defined and elaborated as skill sets, aptitude
and capabilities to the
employers (when student applies for a job). The elaborated definitions will also explain
what benefits will an employer get by hiring a candidate having HPGIF Credits.
| SR No. | Activity | Process | Validation | Credits |
|---|---|---|---|---|
| 1 | Submission of a ‘viable’ Business Idea When contributor is only submitting the Business Idea and he/she is not either will to or equipped to undertake the whole project as startup, but he /she can share the whole concept to anyone who can seriously undertake the whole concept and build a startup around the same. The contributor will be named as he person behind the StartUp and can ask for equity at mutual terms. | The Business Idea has to be submitted either through www.crux.center or CRUX android app Detailed “Proof of Concept”, “Business Framework”,“Business Plan” is to be submitted. | Rafts and Rivers
(Consultants) will
validate the ‘viability’ of
the Business Idea Certificate and documentation will be published by HPGIF on its website. |
20 |
| 2 | Submission of a ‘viable’ Business Idea and ready to undertake it as a startup after “pre-incubation program” Contributor is willing to work as a Co-founder and chief enabler under the guidance of Incubation program. | The Business
Idea has to be
submitted either
through
www.crux.center
or CRUX
android app Detailed “Proof of Concept”, “Business Framework”, “Business Plan” is to be submitted. |
Rafts and Rivers
(Consultants) will
validate the ‘viability’ of
the Business Idea Certificate and documentation will be published by HPGIF on its website. |
60 |
| 3 | A student is willing to
contribute his/her skills as a
“co-creator” of startup but not
in capacity of a founder or cofounder. He/she can be given equity based on mutual consent and after quantify his/her contribution. |
Student will use “Profile Building Module” on www.crux.center or CRUX android app | Rafts and Rivers
(Consultants) will
validate the skill set/s. Certificate and documentation will be published by |
30 |
| 4 | student who is convinced
with a “viable” Business Idea
and willing to be a co-founder. He/she is willing to bring in a capital/resources (proportionate to the equity share at pre money valuation) |
Student will use “Profile Building Module” on www.crux.center or CRUX android app | Rafts and Rivers (Consultants) will validate the arrangements. Certificate and documentation will be published by HPGIF on its website. | 40 |
POINT OF CONTACT
For queries, feedback and discussions about Incubation
Center please contact:
Prof. Mohammad Arif
(Executive Director)
Contact Number: 9415505825
Email Id: contact@hpgif.in
Address: Station Road, Maldahiya Crossing,
Maldahiya, Kashi Vidyapith,
Chetganj, Varanasi, Uttar Pradesh 221002