Kerala sets norms for startup funding
The initial component is the idea grant which can go up to a maximum of Rs. 2 lakh.
THIRUVANANTHAPURAM: The state government has brought out detailed guidelines for selecting startups for granting innovation funds ranging from Rs 2 lakh to Rs 12 lakh through the Kerala Startup Mission (KSUM). After an initial level of vetting based on parameters like usefulness, value and market potential of the idea, the top ten will be referred to the three-member screening panel. The innovation grant has three components.
The initial component is the idea grant which can go up to a maximum of Rs. 2 lakh. It is for prototype development. Productisation grant, the second component, is for converting the market validated prototype into a finished product. The maximum sealing for idea grant and productisation grant put together would be Rs. 7 lakh.
The third component is the scale-up grant, which can be used by the startups for promotional activities and tapping customers. Scale-up grant, productisation grant and idea grant put together should not exceed Rs. 12 lakh. The grants will be distributed in a phased manner after review of progress by experts, said the guidelines. The guidelines also said that failed startups would not be barred from applying for innovation grant again with fresh ideas as KSUM believes that ventures might fail, but entrepreneurs never fail.