ISB's DLabs Incubator has been awarded ₹5 crore under the 'Start-up India Seed Fund Scheme' by the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, Government of India.
'Start-up India Seed Fund Scheme' would enable start-ups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions. Under this Scheme, ISB's Dlabs Incubator Association will facilitate the allotment of Seed Funds to eligible early-stage start-ups. The funds will be used for financial assistance to start-ups for proof of concept, prototype development, product trials, market-entry, and commercialisation.
Nurturing ideas
The Indian start-up ecosystem suffers from capital inadequacy in the seed and 'Proof of Concept' development stage. The capital required at this stage often presents a make-or-break situation for start-ups with good business ideas. Many innovative business ideas fail to take off due to the absence of this critical capital required at an early stage for proof of concept, prototype development, product trials, market-entry, and commercialisation. Seed Fund offered to such promising cases can have a multiplier effect in validating business ideas of many start-ups, leading to employment generation.
Prof Bhagwan Chowdhry, Faculty Director, ISB DLabs, said, “Many good ideas don't see the light of the day because they could not get early-stage funding. This grant will help us fix it.” Commenting on this association, DPIIT said it looks forward to working with Dlabs Incubator Association at ISB, on the Start-up India Seed Fund Scheme for financial assistance to early-stage start-ups.
Fostering innovation
ISB has been at the forefront in working with the government and industry on various research-driven initiatives and incubating start-ups, supporting them to flourish, and raise funds. Many of the start-ups founded by ISB alums have achieved unicorn status. This funding is another achievement that will help in ISB's vision and mission to support the young start-ups and ideas with a platform to flourish their dreams.
Supported by the Department of Science and Technology, Government of India, DLabs at ISB hosts a state-of-the-art space for entrepreneurs to interact, engage and collaborate with mentors, investors, and academia. With the primary objective of strengthening entrepreneurship and fostering innovation among the young in India, including its student and alumni community, DLabs encourages creativity and innovation in a shared work environment amidst a healthy start-up community.