1. Preamble

The Surat Ideas and Innovations Lab aka SURATi iLAB has been setup to catalyze innovation & startup ecosystem and to promote growth, entrepreneurship, investment &  employment opportunities in the city of Surat and make Surat a global Smart City under the aegis of the Smart Cities Mission, SMC (Surat Municipal Corporation) and SSCDL (Surat Smart City Development Limited). It has also been recognised under the prestigious Atal Incubation Mission of the NITI Aayog and hence is known as AIC SURATi iLAB.

AIC SURATi iLAB Foundation endeavors to provide a platform for aspiring entrepreneurs of Surat and neighboring regions to convert their ideas and dreams into reality. It aspires for the Industrial 4.0 bend to capitalize on the new types of jobs generated in the economy whilst maintaining Surat’s dominance in Textile and Diamond industries.

It intends to achieve this in the following ways:

• Create a world class platform for emerging startups and businesses.
• Create a culture of innovation and research in the existing economy dominating industries of Surat.
• Connect entrepreneurs to peers, mentors and potential long-term advisors to the company.
• Build partnerships and business relationships to launch or scale their products in their target markets.
• Connect with venture funds and angel investors to raise funds.
• Impart necessary training to early-stage startups, entrepreneurs and their teams to help them become successful.

It intends to merge the scattered ecosystem under one monolithic umbrella and promote Brand Surat and to identify, nurture and grow the unicorns of tomorrow.

Pursuant to these objectives, AIC SURATi iLAB Foundation hereby institutes this scheme to assist seed stage and early stage startups without having any equity share.

2. Definitions

2.1 Startups (for the purpose of this scheme):

1. Any individual/group of individuals having innovative idea/concept after legal registration as LLP, Partnership or Private Limited Company. However, an entity shall cease to be a Startup on completion of ten years from the date of its incorporation/ registration or if its turnover for any previous year exceeds one hundred crore rupees.
2. "limited liability partnership" shall have the meaning as assigned to it in clause (n) of subsection (1) of Section 2 of the Limited Liability Partnership Act, 2008;
3. "partnership firm" means a firm registered under section 59 of the Partnership Act, 1932;
4. "private limited company" shall have the meaning as assigned to it in clause (66) Section 2 of the Companies Act, 2013
5. "turnover" shall have the meaning as assigned to it in clause (91) Section 2 of the Companies Act, 2013
6. "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.

2.2 Seed Stage / Early Stage StartUp:
Seed Stage or Early stage startup is that entity which has either a validated concept or a proof of concept or a Minimum viable product for an innovative project.

2.3 Innovative project:
Innovative project is a project which seeks to introduce new technology or make changes in the existing technology by implementing large or small, radical or incremental changes, resulting either into the formulation of novel products, processes or services; or considerably cheaper products, processes or services than existing ones in the market in tune with the central idea of make in India to meet the local needs.

2.4 Innovator:
An individual who undertakes an innovative project and demonstrates the fundamental functioning of novel idea / innovation. However, the innovator has to register the innovative project as a startup in order to avail assistance under this scheme.

2.5 Mentor:
An individual/ resource person / expert who provides mentoring support to Startups and possess domain and/or subject expertise and knowledge of the Startup ecosystem.

2.6 Sustenance allowance:
Sustenance Allowance is a monthly assistance provided to approved/sanctioned startups to meet the expenditure where they do not have any sufficient/adequate means of finance for their innovative project.

2.7 Mentoring service:
Support provided  to Start-ups in terms of connecting them with mentors, experts, industry & business service providers, and providing access to literature, laboratories, workshops, library, service bay and other support required for mentoring and nurturing the startups.

3. Eligibility 

Any individual or group of individuals having innovative idea/concept and recommended by PSC will be eligible to get recognized as a startup under this scheme.
The assistance under the scheme will be provided for innovative projects in any sector or any faculty/branch of science, technology, engineering, agriculture, healthcare and no innovation worth its name is restricted from availing assistance just because of its being into a particular sector, making this a sector agnostic scheme.
Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a 'Startup'.
Provided that the startups which are availing incentive as a 'startup' in any other 'startup scheme' of Government of Gujarat or Government of India will not get incentives under this scheme. However, the startups/innovators availing benefits under the Student Startup and Innovation Policy (SSIP) would also be eligible to avail assistance under this scheme.
Only seed stage and/or early stage startups  shall be eligible for assistance under this scheme.

4. Quantum of assistance 

4.1 Assistance to startups:

The Quantum of Assistance as under would be provided to the Startups whose innovative project is approved/sanctioned by SC.

4.1.1 Sustenance allowance:
Sustenance allowance of Rs. 20,000 (Rupees Twenty Thousand) per month per startup will be provided to the Startups for a period of one year.
In case of startups having at least one-woman co-founder, Rs. 25,000 (Rupees Twenty Five Thousand) per month per startup will be provided as sustenance allowance.

4.1.2 Seed support:
Seed support up to Rs. 10.00 lakh(Rupees Ten Lacs) will be provided to the Startups on the following, based on approval/ sanction by SC:

1. Cost of raw materials/ consumables / hardware & software / professional services / other equipment / tools required for prototype / product/ process development
2. Market research
3. Testing & trials
4. Marketing/ publicity assistance: Here marketing/ publicity assistance covers assistance to startups to attend national/international events. The fees/charges paid for attending the same will be considered eligible under this head. However, it is clarified that to and fro conveyance/accommodation expenses will not be considered for assistance.

4.1.3. Assistance to Startups having a significant impact on Society:
An additional support upto Rs. 3.00 lakh (Rupees Three Lacs) assistance will be provided to startups having innovative projects which have a significant impact on society,; or are in tune with various focussed missions of the Central and/or State Government  like Swachch Bharat Mission, Smart City Mission, Amrut Mission, HRIDAY Scheme, etc. based on the conditions on approval/ sanction given by the SC.

4.1.4. Pre- Series A funding:
In the life cycle of a Startup, there is a funding gap which is better identified as the valley of death. This is a phase post commercialization where the Startup has just started generating revenue till the time period where its product/service gets market traction. Such startups will be assisted in getting venture capital.

4.1.5. Assistance to enroll and participate for Acceleration Program:
Approved/sanctioned startups will be eligible to participate , without paying any fees, in the Acceleration Program run by AIC SURATi iLAB which is typically a 12-14 weeks program for startups at early traction and scaling stage. It is a process of intense, rapid, and immersive education aimed at accelerating the growth of the startup.

4.1.6. Assistance for skill development:
Approved/sanctioned startup shall be provided assistance for skill development trainings specific to soft skills, managerial skills, marketing skills, financing skills for the startup project. Such skill development training should support the startups in understanding the ecosystem, fund raising, commercializing and scaling up the startup project. Financial assistance up to Rs. 50,000 (Rupees Fifty Thousand) per approved/sanctioned startup shall be given for participating in such skill development training programs on reimbursement basis conducted by institutions preapproved by AIC SURATi iLAB.

5. Procedure

The eligible institution/ startup has to apply as per the following procedure:

1. Eligible innovator/ startup shall get registered on the online portal to avail assistance under the scheme.
2. The Registered Start-ups shall apply with requisites in prescribed format.
3. AIC SURATi iLAB Office shall evaluate, validate and after due diligence recommend the startup project proposal to the PSC.
4. The startup project proposals will be scrutinized by the PSC and after due diligence, the startup project proposals will be placed before the SC for approval/ sanction.

The Detailed procedures for approval/sanctions of Startups, terms, conditions and guidelines would be separately issued by the AIC SURATi iLAB Office.

6. The Proposal Scrutiny Committee (PSC):

A committee of following members is constituted for approval/sanction of Assistance under the scheme.

Sr.No.	Person/Officer	Post
1.	CEO, AIC SURATi iLAB	Chairman
2.	Incubation Manager, AIC SURATi iLAB	Vice Chairman
3.	Business Analyst, AIC SURATi iLAB	Member
4.	Two Representatives from appropriate Advisory Committee (1 SMC + 1 Industry)	Invitee Members
5.	Two Subject/Domain Expert	Invitee Members

 

7. The Selection Committee (SC)

A committee of following members is constituted for approval/sanction of Assistance under the scheme.

Sr.No.	Person/Officer	Post
1.	CEO, SSCDL and MD, AIC SURATi iLAB	Chairman
2.	CEO, AIC SURATi iLAB	Vice Chairman
3.	Company Secretary, SSCDL	Secretary
4.	Incubation Manager, AIC SURATi iLAB	Member
5.	Two Representatives from appropriate Advisory Committee	Invitee Members

 

8. Equity Sharing

No equity sharing shall be required by AIC SURATi iLAB Foundation for providing assistance under the scheme to the approved startup.