Tag Archives: startup

Startup India registration process

Recently PM Modi had announced the scheme related to Startups and extended his support towards innovation, it’s a very good step considering in mind a lot of startups are emerging and they need some sort of support to survive. The StartUp India initiative includes benefits like tax exemption, funding, relaxation and support in registration of intellectual property.

THE SCHEME-WHAT YOU HAVE TO DO

The number one thing you must do is to apply for recognition as a startup, for this first thing first is that you must be registered as a partnership, company or a LLP. In order to get recognized as a startup you must get

  1. Recommendation (with regard to innovation nature of business), in a format specified by Department of Industrial Policy and Promotion, from any incubator established in post-graduate college in India; or
  2. Letter of support by any Incubator which is funded (in relation to the project) from Government of India or any State Government as part of any specified scheme to promote innovation; or
  3. Recommendation (with regard to innovative nature of business ), in a format specified by Department of Industrial Policy and Promotion, from any Incubator recognized by Government of India; or
  4. Letter of funding of not less than 20 percent in equity by any Incubation Fund/ Angel Fund/ Private Equity Fund/ Accelerator/ Angel Network duly registered with Securities and Exchange Board of India that endorses innovative nature of the business, Department of Industrial Policy and Promotion may include any such fund in a negative list for such reasons as it may deem fit; or
  5. Letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; or
  6. Patent filed and published in the Journal by the India Patent Office in areas affiliated with the nature of business being promoted

KEEP IN MIND

You must qualify for the definition Startup as per the government of India Notification to get the benefits under the scheme. That means you must be qualified as under The Startup must possess

a) Up to five years from the date of its incorporation/registration,
b) If its turnover for any of the financial years has not exceeded Rupees 25 crore, and
c) It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property;

If you are qualified as a startup and got any of the 6 documents mentioned above then you have to apply with complete documentation. Once this done the Department of Industrial Policy and Promotion will issue recognition number and the startup will be recognized Startup

Then the funding process will be initiated which will be discussed in next part.

Advocate Nitish Banka
For details, visit Lexspeak Legal

(Please post your press releases directly to appropriate exchange forum and submit startup events using the form.)
(If you are an amazing startup founder or enabler of startup eco-system in India or elsewhere and would like to be interviewed or featured on Startups.in then please read this and this before you reach out)

Startup India Financing – Funding for startups

Startup India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage start ups with jobs creation. The campaign was first announced by Prime Minister Narendra Modi on 15 August, 2015. As part of Start Up India action plan Canara Bank has introduced a specialized scheme for financing of startups and early stage units promoted by graduates of reputed educational institutions like IIT and IIM. Canara Bank is among the largest banks in India with 5841 branches spread across all geographical segments. In addition to over 5841 branches, the bank also has other channels that include 9251 ATMs, covering 4081 centres.

Loan Eligibility

Canara Bank is one of the first bank to launch a specialized scheme for financing of start ups and early stage units promoted or proposed to be promoted by Graduates of reputed Educational Institutions. To be eligible for loan under this scheme, the promoter must be aged between 20 – 50 years and operate a startup or early stage unit that is less than 3 years from date of commercial operation or first balance sheet, whichever is earlier. In addition to the above, the promoter must be a Graduate of one of the Educational Institution listed below:

  1. IIMs (Indian Institute of Management)
  2. IITs (Indian Institute of Technology)
  3. IIITs (Indian Institute of Information Technology)
  4. IISc (Indian Institute of Science)
  5. ISBs (Indian School of Business)
  6. IISERs(Indian Institute Of Science Education And Research)
  7. XLRI ( Xavier School of Management)
  8. Symbiosis Institute of Management Pune/Bangalore
  9. Management Development Institute, Gurgaon
  10. NITs (National Institute of Technology)

Amount of Loan

Under the scheme for financing startups, loan can be provided for manufacturing or services activity. The loan can be working capital, term loan and non-fund based limits. The minimum loan that can be availed under this scheme is Rs.10 lakhs, while a maximum loan of upto Rs.2 crores can be provided for startup and Rs.5 crores for early stage units.

Promoters would have to maintain a margin of 25% in case of working capital limit and 20% in case of term loan.

Collateral Security

Minimal collateral security is required for loan sanctioned under this scheme. In case of loan under Rs.100 lakhs, loan can be provided without collateral under CGTMSE coverage. In case of loan over Rs.100 lakhs, loan can be provided against pledge of collateral property worth 50% of the loan amount in the form of land or building or approved securities or bank deposits.

Interest and Repayment

Loan sanctioned for startups and early stage units under this scheme are sanctioned at attractive rate of interest. A 0.25% reduction from card rate is provided for applicable MSME businesses. In addition to the interest, an upfront fee of 0.25% of the sanctioned amount (Minimum of Rs.5000) must be paid to be bank on sanction of the loan.

Repayment tenure of up to 7 years excluding moratorium is provided for projects involving project cost of less than Rs.1 crore. Projects with a cost of over 1 crore can enjoy 7 to 10 years repayment tenure, excluding moratorium period. Repayments can be structured as EMI payments or ballooning repayment, based on the projected cash flows.

For details, visit MyeCA

(Please post your press releases directly to appropriate exchange forum and submit startup events using the form.)
(If you are an amazing startup founder or enabler of startup eco-system in India or elsewhere and would like to be interviewed or featured on Startups.in then please read this and this before you reach out)

Licensing – A way to grow your Business

Consider licensing as a way to grow your business, licensing means to permit or simply means to use. If you are a small business with innovative products you may use licensing as a mode to grow your business.

Licensing involves two partners one is an innovative partner and other is a heavy weight organization. Many small businesses die because they are not able to attain those levels of sale or generate revenue, even if they have great products, they do not have those mass production capacity to produce those great products to become profitable. Because R&D costs involved in generating or creating great products are huge yet many products fail to create an impact in the market. The solution is licensing. Licensing is very popular in software sector and very popular example is Microsoft licensing software’s to IBM. Now if a small company really wants to become big the Microsoft IBM licensing is a perfect example.

Here are some of the ways to assess whether your business is fit for licensing or not.

Innovative and Unique products but no capacity to produce at Large scale.

You have an innovative product and is an improvement of earlier product that could lead an impact to the existing industry if it is produced at a mass scale, the solution is simple it is to license it to the big corporation and take a royalty out of the sales, when it is produced and sold at large scale. But remember the legalities involved in such cases, make sure your product complies with all the Intellectual property laws this means you must have a proper copyright or patent for the product before you may license it for mass product otherwise you will lose your proprietorship.

Ancillary products to main product

If your product is an ancillary product to the main product and you can’t match the demand in case it’s a B2B business consider the proposition of licensing it to the main product manufacturer, because they have such facility to mass produce and fulfill demand. Like in cases of automobile industry some technology like computer software are licensed. Or some equipment like safety equipment’s like air bags sensors are often licensed by electronic companies and they earn royalty on it.

Products that can only earn profit if mass produced

It is for those manufacturing factories which have huge distribution channels and the price margin of the product is small that unless they are mass produced and distributed hardly the profit the product could make for those products huge amount of capital is needed to get some product, licensing with already established business is easier to mass produce and gain profits. It is for those products which are to be sold in millions to make millions and that can’t run of pennies as you would be getting pennies.

Licensing is a way to scale up the business really fast without raising any capital, but only precondition is that the product has a huge demand potential and should sell like hot cakes and the product if sold in masses could create a huge impact in the industry. These types of products are best suited for licensing.

For details, visit Startup legal

(Please post your press releases directly to appropriate exchange forum and submit startup events using the form.)
(If you are an amazing startup founder or enabler of startup eco-system in India or elsewhere and would like to be interviewed or featured on Startups.in then please read this and this before you reach out)

Creating a great first impression just got easier with Jodi Logik

The glamour of starting a company masks a truly challenging task that every brave entrepreneur is forced to confront and that is “How do you market your product idea in a highly competitive marketplace?“.

If you are bootstrapping your company and have limited or no seed funding to rely on, you have a steeper mountain to climb!

Assuming you have done the basics right, namely, identified a gap in the market that you can address or tap an unmet need, and your target market has the required scale to fuel rapid growth for your product, the Million Dollar question is “How do you market your product or idea without spending money?“.

I started Jodi Logik in September 2015 with my own money. Till the end of February 2016, Jodi Logik was a bootstrapped company. For over 6-months, I was on my own but managed to move things along in terms of marketing without any major spend.

Reflecting on the 6-months I was on my own, there is one key lesson I learnt.

Good Karma Pays Off
One of the easiest things an entrepreneur can do is to help others and let good karma pay you back! Let me explain this idea.

Let’s say you have an idea to sell mangoes online. You can just set up an eCommerce site for your mangoes. However in order to attract customers, you will need to spend a lot of money advertising your site through the Internet or traditional media outlets. To further compound the problem, you will have to deal with other sites selling mangoes! You will have to outspend your competition even if your mangoes are better than that of your competition!

Now that you understand the problem, here is a simple way to get your name out without burning cash.

People are looking for answers and that’s one of the reasons Google exists. As an entrepreneur selling mangoes, all you have to do is to find and answer questions people have about mangoes!

The first thing any entrepreneur should do to get started with product marketing is to seek questions that your target customers have about your product or product category and make sure you make a genuine effort to provide the best answer.

Here is an example of what I did.

The target audience for my company includes young Indians who are single. Jodi Logik offers an online solution to create a biodata for marriage and hence my area of interest was to answer questions from single Indians about marriages, arranged marriages, love marriages, dating and relationships.

So here is what I did. I was already a member of Quora and it has millions of users and a lot of them are young Indians. I quickly figured out that there were plenty of questions on the topics that fall squarely in my product category and the quality of answers for many of the questions that I consider as important were below par. I decided to invest my time in answering as many questions as I can on Quora.

In 6-months, the number of views for my answers have grown significantly from nothing to over 160K!

Guidelines For Earning Good Karma

When you answer questions on Q&A sites like Quora, Yahoo Answers or in Discussion Forums, make sure you follow these guidelines:

  1. Provide a high quality response. Do your homework before answering anything. Providing an in-depth and meaningful response is always appreciated.
  2. Don’t try to pitch your product. Try answering the questions genuinely.
  3. Don’t take a holier than thou stance even if the question is really “bad” or poorly framed.
  4. Don’t get into heated debates with anyone over your responses or someone else’s response.
  5. Remain consistent. Find time every week to contribute to the community.
  6. Humor always helps.

Here is a simple thing you can do on Quora. Create a headline that includes your brand. Every time you answer a question, you give your brand some free publicity and potential traffic!

An added bonus in answering questions is that you become very aware of your target customer’s needs and expectations from the product category you are interested in and this feeds directly into your product road-map!

If you are selling a B2B product, LinkedIn and industry forums / sites are a great place to demonstrate your competence and showcase your unique take on the subject matter.

In summary, good deeds are always rewarded. The rewards are not instantaneous nor they come to you in ways that you planned for. In hindsight, you will realize that every attempt you make to help others comes back to you in the form of goodwill, free publicity, and if you are lucky, droves of customers!

For details, visit Jodi Logik

(Please post your press releases directly to appropriate exchange forum and submit startup events using the form.)
(If you are an amazing startup founder or enabler of startup eco-system in India or elsewhere and would like to be interviewed or featured on Startups.in then please read this and this before you reach out)

Startup Pitch: Pre-rented property as an investment

Rentedpropertywale.com

Location: Delhi

Stage: Generating Revenues

Property as an Investment, RentedPropertyWale, your answer to financial worries

Something exciting is brewing in the niche, property as an investment space. Off late there are many websites that are either helping you rent or purchase a property or guide you through managing your finances better. Here comes a portal that offers the best of both worlds.

Rentedproperlywale.com is an exclusive and premium Indian portal that has introduced the concept of pre-rented property as an investment to people.

Rentedpropertywale.com is the 1st exclusive premium Indian portal providing news and information on Pre-Rented, Pre-released & return-assured properties. The company caters exclusively on individual buyer and investor ranging from 50 lacs to 100 crore.

It’s a first of a kind Pan India portal. The company’s focus is to help you find and list the best pre-rented/leased and assured return properties.

Pioneering a Vision

Launched early last year (In January, 2015), to provide revenue oriented assets to clients who want to invest wisely, Gaurav Marwah has been working hard to build his dream and help the people of India build a secure future.

[alert variation=”alert-info”][icons icon=”icon-attach” color=”#dd3333″ size=”18″]This is a self-published pitch by Girish Mehta @girishmm. Take control. Submit your own pitch[/alert]

(Please post your press releases directly to appropriate exchange forum and submit startup events using the form.)
(If you are an amazing startup founder or enabler of startup eco-system in India or elsewhere and would like to be interviewed or featured on Startups.in then please read this and this before you reach out)

Beautiful Mess from a Beautiful Mind

Few years ago, while pursuing his Master’s degree in Computer Science, an young engineer with a brilliant mind was bored seeing 2D desktops on computers and wondered if these virtual desktops could be made more lively and make them behave in a more realistic manner, similar to the real world table desks.

bumptop

A 3D Desktop aka BumpTop

He went on to pursue his idea and while still at the University of Toronto, published a research paper under the guidance of his adviser Ravin Balakrishnan, an Associate Professor in the Department of Computer Science.  But Anand Agarawala did not stop there.

Like a true entrepreneur, Anand soon productized his work into BumpTop which when installed converts the typical computer desktops into fancy 3D rooms and enhances the productivity. A free version is now available for download. (Watch the video where Anand explains the concept of BumpTop)

bumptop-logoAt a basic level, Bumptop replaces Folders on your desktop with Piles (similar to piles of paper on a table desk). Especially useful is the feature where you can directly start typing the name of a file you want to find, and BumpTop highlights all the piles containing a match. The fun and functional desktop GUI includes several other innovative features with multi-touch capability.

All of 27, this bright engineer with a creative mind is now CEO of the startup behind BumpTop which has been incorporated in 2007 after receiving funding. Aside from Government grants, other funding sources include angel investors Andy Hertzfeld, Austin Hill and G. R. Heffernan. GrowthWorks Capital and Extreme Ventures provided the venture capital.

Bump into BumpTop.