The Scheme for Assistance for Startups/Innovation is an umbrella initiative launched by the Industries and Mines Department, Gujarat, under the Gujarat Industrial Policy. The scheme, effective from August 7, 2020, to August 6, 2025, aims to stimulate economic growth by fostering competition, creating jobs, and driving innovation.
The “Pre-Series A Funding” component specifically addresses the “valley of death” phase for startups. This phase typically occurs after commercialization, when startups begin generating revenue but have not yet achieved significant market traction. Through this scheme, Gujarat Venture Finance Limited (GVFL) provides mid-level funding to startups that have previously received seed support under various government schemes.
Scheme Key Highlights (Short Summary)
• Launched by: Industries and Mines Department, Gujarat
• Duration: August 7, 2020 – August 6, 2025
• Assistance Type: Financial support for startups during the critical “valley of death” phase
• Maximum Support: Support to bridge funding gaps between seed stage and Series A funding
• Eligibility: Startups in any sector with an innovative idea, recommended by Nodal Institutions
Benefits
• Bridges the funding gap during the critical phase after commercialization but before significant market traction (Pre-Series A phase)
• Financial support for mid-level funding to scale operations
• Provides financial stability to startups, enabling them to reach the Series A funding phase
Eligibility
• Individuals or group of individuals with an innovative idea or concept
• Startups must be recommended by an approved Nodal Institution
• Open to startups in any sector, including science, technology, engineering, agriculture, healthcare, etc.
• Startups under the Student Startup and Innovation Policy (SSIP) are also eligible
• The startup must have already received seed support under various government schemes (if applicable)
Exclusions
• Entities formed by splitting or restructuring existing businesses are not considered startups under this scheme
• Startups already receiving benefits from other Gujarat startup schemes are not eligible under this scheme
Application Process
Online
Registration Process:
• Step 1: Visit the online portal and click on “Register” at the top right corner
• Step 2: Enter your Email ID and click Next to verify your details
• Step 3: Submit the registration form to complete the process
• Step 4: Upon successful registration, log in to the portal to proceed with the application
Application Process:
• Step 1: Log in with your registered Email ID and Password
• Step 2: In the Dashboard section, fill in all required details
• Step 3: Click on “Apply Now” from the dashboard
• Step 4: Select the relevant scheme and complete the application process
Documents Required
• Proof of Startup Registration (Startup India or equivalent)
• Recommendation letter from a Nodal Institution
• Business proposal document with details of the innovative idea
• Financial documents, including projected revenue and funding requirements
• Declaration of non-availment of incentives under other schemes (except SSIP, if applicable)
• Any other documents required for the application
Frequently Asked Questions (FAQs)
Q: What is the objective of the “Scheme for Assistance for Startups/Innovation”?
A: The scheme aims to drive economic growth by supporting startups and fostering innovation through financial assistance, job creation, and competition.
Q: What is “Pre-Series A Funding”?
A: It is financial assistance provided to startups that are in the “valley of death” phase, bridging the gap between seed funding and Series A investment to help them scale and gain market traction.
Q: Which startups are eligible for this funding?
A: Any innovative startup that has been recommended by an approved Nodal Institution and has previously received seed support under government schemes.
Q: Is the funding scheme limited to specific sectors?
A: No, the scheme is sector-agnostic, meaning startups in any sector such as science, technology, engineering, agriculture, healthcare, etc., can apply.
Q: Can a startup receive benefits from multiple government schemes?
A: No, startups that are already receiving benefits from other Gujarat startup schemes are not eligible for this scheme.
Q: Are startups formed by splitting or reconstructing existing businesses eligible?
A: No, such entities are not considered startups under this scheme.
Q: What role do Nodal Institutions play in the funding process?
A: Nodal Institutions recommend startups for the scheme and provide an evaluation matrix to support the application process.
Q: Are startups in the student category eligible to apply?
A: Yes, startups under the Student Startup and Innovation Policy (SSIP) are eligible to apply for this scheme.
Q: Who provides the final approval for the funding?
A: The State Level Empowered Committee (SLEC) provides the final approval for the funding after reviewing the Nodal Institution’s recommendation.